We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
It comes as no surprise that Moody's Investors Service has
slashed its rating of the Caribbean Development Bank (CDB) from AAA
to AA1 and Standard & Poor's has issued warnings of growing
debt concerns in the Caribbean region.
What is surprising is that this rating was not lower given the
sovereign debt and economic performance issues in the region
following the collapse of Stanford's empire, IMF country
management and the on-going spectre of more expropriation of
foreign-owned property.
The financial ministers of Antigua & Barbuda would like to
pretend that this is an external matter that will have little
consequence. The reality, however, will undoubtedly be reflected in
higher borrowing costs for any development in Antigua and the wider
Caribbean region, with greater risk adversity and increased
investor reluctance.
Whilst Antigua & Barbuda has never had a credit rating of
its own, because its lacks the political will and declines the
light of scrutiny on its financial affairs, Moody's action
signals a growing impatience amongst investors to tolerate risk
without transparency and adherence to accepted good international
practise.
In fact, it is precisely reasons such as Antigua's serious
shortcomings that negatively influence the confidence of depositors
and investors in the Caribbean Development Bank itself, resulting
in reduced capital to lend to these higher risk zones and
nations.
The spiral, if unchecked, becomes self-perpetuating
Dr Warren Smith, President of the Caribbean Development Bank
informed his board of governors that the downgrade was not
surprising in today's "environment of
uncertainty".
Adding, "We are undertaking an in depth examination of our
risk management framework and we will implement appropriate
recommendations as we build resilience to the more dangerous world
which we now occupy."
Time will tell if the officers of CDB will make Antigua's
future access to capital more contingent on economic prudence and
adherence to constitutional commitment, in order to ensure its own
survival and ability to lend to the other, more responsible nations
in the Caribbean.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Cayman Finance, which represents much of the financial community in the Cayman Islands submitted a letter on May 22nd highlighting massive inaccuracies in an article by Sir Simon Jenkins.
One of the fundamental principles of company law is that a lawfully incorporated company has a legal personality and identity that is separate from its directors or shareholders.
Reports in the UK suggest a dossier of more than 100 names of people with money here, and other tax free jurisdictions, has been compiled to find those who are avoiding paying tax.
14 May 2013 (Cayman 27) The head of Cayman Finance has rejected claims from economist Jeffrey Sach that some residents here sit on hundreds of hedge fund boards.
Following on from our recent article on the Companies Act 2011, the Companies Act 2012 further demonstrates the Isle of Man’s commitment to seeking transparency in the ownership of companies.
As the private client industry in Jersey seeks to attract clients from the emerging jurisdictions it is likely to become increasingly involved with putting in place succession planning and asset protection structures that relate to family businesses.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
