Barbados could soon be moving one step closer to implementing a restructuring plan that would allow policyholders to recover 100 per cent of the money they invested in CLICO International Life Insurance Company (CIL).
It was first announced in July of last year that the judicial manager of CLICO had put before the court a final restructuring plan that would allow policyholders to recover 100 per cent of their $542 million they invested.
A part of the process consists of getting the support of regional governments.
That plan includes the creation of a property trust in Barbados and one in the OECS in which the assets would be placed. Those property trusts would then issue bonds against the value of the assets.
Following an update to the nation on a number of economic issues on Monday, Sinckler responded to questions regarding the CLICO debacle.
He said despite waiting to hear from the OECS partners on the restructuring plan, Barbados would be pressing ahead.
Sinckler said the Cabinet would “shortly” be approving “the formal and final restructuring plan for CLICO”.
“We expect thereafter the judicial managers will, in a couple weeks or so, return to the court and indicate to the court that the Government has thrown its full support behind the restructuring plan which was identified when they last went to court and had tentative approval for it,” said Sinckler.
“We are going to go ahead and implement the Barbados portion of it. We are still waiting on our OECS partners to make a decision whether they are gong to participate or not and at what level. But we feel people have been waiting long enough and we have taken the decision that we are going to go ahead with that restructuring plan,” he said, adding that a valuation would be done to find out the current value of the assets.
However, in a short response Fowler told Barbados TODAY that until she saw documents Sinckler’s statement was noting but another empty promise.
“We have heard the word from the Minister of Finance so many times that it has become almost laughable. So until we see in writing, unless we see action, then again it is just words,” said Fowler.