Still don’t understand if the NIS is cash rich why sell unless it was at the behest of the MoF.

Both parties would have responded in the same way. Now is the time for the Bush Tea plan of the Government underwriting the cost of a New BNB. Now you know that the Credit Unions and a number of nationalistic Barbadians would jump at the opportunity to support such an initiative … and when it becomes sufficiently popular in a few years time, sell the f#cker for more FX. Now if this is the vision, well then I would be challenged to find fault.

BAFBPF;
So a new BNB arises from the ashes of the old one, like a Phoenix fed by the Credit Unions, and kills off the entities that killed its parent. Wow!!

Dah fuh lik dum!!

The following maybe of interest:

Republic Bank of Trinidad & Tobago confirms buying 8.9% stake in Ghana’s HFC for $8m
Page last updated at Monday, December 17, 2012 13:13 PM // Leave Your Comment

hfc-bankThe Republic Bank of Trinidad & Tobago (T&T) has purchased 8.9% shares in HFC Bank Ghana for an amount of $8 million, the Caribbean bank confirmed in a statement December 11, 2012.

The bank bought the HFC stake when the Ghanaian bank floated additional 112,420,246 ordinary shares under a private placement concluded in November 2012. This has helped HFC Bank to increase its stated capital from GH¢45,000,624 to GH¢95,000,624.

The HFC Bank in a December 1, 2012 letter issued by its management to the Ghana Stock Exchange (GSE) confirmed the purchased made by the Republic Bank.

In its statement, Republic Bank said it bought the stake “in keeping with its expansion strategy and its focus on areas outside of its traditional Caribbean markets.”

Commenting on the purchase, Republic Bank’s Managing Director, David Dulal-Whiteway said that the Bank had been considering a number of overseas interests over the last few years, and decided on the HFC opportunity, following that Bank’s recent private placement to raise GH¢50 million. Republic Bank’s investment in the shares of HFC is put at $8 million.”

According to Dulal-Whiteway, the investment in HFC will open up for Republic Bank’s local business clients, new opportunities to do business on the African continent.

By Ekow Quandzie

Ghana Business News » Republic Bank of Trinidad & Tobago confirms buying 8.9% stake in Ghana’s HFC for $8m http://bit.ly/RT2GPf

If the NIS is cash rich does it not make sense to hold the investment which is paying a good dividend until other investment opportunities appear?

“The Minister of Finance has too much power”
**************

Who would you give the power to Caswell?

What we need to do,… is ensure that the persons elected to wield such powers are COMPETENT to exercise the powers wisely.
But You could really hush, cause you are clearly ideally placed to play a CRITICAL national role as outlined by Bushie – and like most Bajans, you have chosen instead to walk about talking a lot of shoite…. You, GP, Hants, Observing, Sargeant…stupseeeee

How will our level of governance improve when we leave such things to second rate locals and third rate foreigners who find out how foolish we are…?

As To The Point says, there is no point in holding minority shares in such an aggressive organization as this….and we had NO REAL SWAY in influencing the selling price. You see how they make Dr Robinson shame….?

….It is which ever idiot that sold out majority ownership that should take all the blame for the fiasco.

Bushie’s back up plan is to create another bank – and if they want, they can buy that one too…..and another ….and another.

Why is it that almost if not all our our neighbouring islands have a domestic bank(s) and Barbadians would be apologetic that we have none?

Bush T
You think starting a new Bank is like starting a meeting turn? BNB inherited a list of depositors and assets from the Barbados Savings Bank which had been in existence for many years. (BTW could someone write a wiki page on these institutions otherwise they will go the way of other Bajan Institutions just fading memories for many of a certain generation then left to recede into Antiquity)

I don’t know much about the management of BNB in the early years but I think that the transition from primarily a Savings Institution to a Commercial Bank must have been challenging as the management cadre and staff were drawn from the ranks of the Civil service who through no fault of their own were not trained Commercial Bankers.

After BNB weathered the storms of the early years and was finally becoming profitable the Barbados Gov’t divested itself of controlling interest to Republic Bank of T & T. Many reasons have been advanced by apologists for the Gov’t e.g. The Bank was not making enough profit; Bajan management was incompetent etc. but no one has stated the actual reason i.e. that the then Gov’t was cash strapped( just as the current one is) and needed the money to finance projects. That surely will be a surprise to Bajans who believe everything was sweetness and light under the previous Gov’t but the sale was so successful that the BLP is now ready to repeat history in advocating “ Privatisation” which would give them the money to finance projects and run the Gov’t so it appears that they are accomplishing something .

“Privatisation”= Old wine in new skins.

Now Bush Tea how many people you have for that meeting turn?

Bush Tea
I was not aware that your plans included nationalisation of Credit Unions, but the age of the smart Bajan in their dealings with Trinis is a relic of the past which should take the place of Brer Ananci tales, yuh think that when the Trinis bought BNB that they may not have insisted on a “non compete” clause?

Prodigal Son, I am in awe …

@Prodical son

selling the shares is not privatising. The fact that the govt is a minority share holder means that it has no share in the running of the instituion, even if it has joine with the other minority shareholders it would have been out voted if u understand company governance.

WHEN owen sold the shares did we get the best price for the shares? Why did he sell the shares? Wasnt the bak making a profit at the time? By the way I was one of those persons who had bought shares and sold them when i realized that the trinidadians were going to take it over.

@David
what dividends has the bank being paying and how do you know that the funds generated are not going to be used to either liquidate costly oustaning debt(s) or put in a more profitable venture? I have not heard thegovt made any public statement on what it will do with the funds.

The following extract from the link above is interesting:

The credit orientation of the commercial banks shows a preference for the high returns of personal credit and the safety and stable returns of mortgages. From Figure 2 below, it is notable that even credit to tourism, that is so critical to our economy, is overshadowed by credit to the personal sector. Credit Unions and Finance Companies have also followed a similar trend. This means that it may be an uphill task for the government to persuade the current non-government owned banks to extend substantial credit lines at lower rates to non-traditional sectors of the economy in order to spur development and diversification in the economy. This challenge may also be inferred from the high delinquency (over 30%) and reduction in the use of government supported credit guarantee schemes. This provides an argument for a government owned bank, with a mandate to provide targeted and specially structured credit to specified economic sectors to promote government’s macroeconomic strategies. There is however the counter argument that a similar function is already being performed, albeit on a smaller scale by the Enterprise Growth Fund Limited.

@ 3S
You are 99% correct.
The ONLY hope for success for ANY organization in this era – is to have individuals with vision, intelligence and guts in critical leadership positions.
Anything less is suicide.

We went through a period of about 40 years where world conditions were such that any old idiot could have been a “leader”, because it was a TIME OF PLENTY. (Just like any idiot can lead an army in peace time)

But this is a different time.

VERY FEW persons in an average community are blessed with the required leadership skills. One of the most lacking is GUTS, because we are plagued with an abundance of effeminate men whose balls are purely decorative, and women who have none to begin with….

Wunna think that Bushie pick on Caswell because he is Bushie’s friend?
What friend what?!?
….he has what is needed.

Where you err is in including the Bushman in your list.
BUSHIE IS NOT AVAILABLE, having already been enlisted in a much higher calling. Besides, it would never work as Bushie’s way is so RADICALLY different from the norm…..too much stress.

As Jesus once said (LOL ..or WOULD HAVE SAID if he was a Bajan) “.. Wunna people think that I come to bring peace, but peace shoite, I aint come to bring no peace, i coming with a sword…..”

Here is what Dr. Robinson posted on BU about the matter of selling NIS holdings in BNB:

Submitted on 2012/12/05 at 6:02 AM

Whatever the NIS did, Republic Bank would own at least 83% of BNB. The float ratio of BNB would have been so low (less than 10%) that there would be very little trading and hence little possibility for any capital gains for the NIS. In my opinion if NIS had remained as a shareholder, it would have been at the mercy of the dividend policy of republic bank, which as a very minor shareholder it would have no influence on. That to me would not have been a wise investment approach.

I publicly expressed a preference for a share swap. Republic Bank indicated that it was unwilling/unable to do a swap.

Sargeant
Bushie was (and has been for years) talking about the Credit Unions establishing a National Bank. Nobody said anything about Government nationalizing Credit Unions or any such… Bushie even called for such when government owned BNB.

If you want Bushonomics….
Bushie would have to explain that rather that involve government taking over the Credit Union, it would be the other way around where the PEOPLE took over government using co-operative principles.
Do you get the new post that has earmarked Caswell at the National level? …Chairman of the National Supervisory Committee.

Did you grasp the concept of pre-signed letters of resignation by officials which ENSURED that they understand who is working for whom…?
Stupseeeee… How will you ever get promoted beyond Sargeant..?

…. Apology accepted. 🙂

Bushie it doesn’t have to be complicated.

The Credit Unions could start a bank with SOME of the money they have. It would be in addition to their existing Credit Union set up.

I may be wrong cause I aint nuh banker or Lawya.

@ David | December 27, 2012 at 8:38 AM |

One would wish that the goodly Dr. Robinson should stop misleading the public with his
stupid excuses for selling the BNB shares in RBL.
He can as well come clean and admit that “his” Board was instructed by the MoF to sell in order to get the foreign exchange in the system before year-end for the Governor’s reporting to sound good in January for timely electioneering.

If we should we accept the Doctor’s reasoning for selling the RBL shares then we have to ask him if the same principle applies to the NIS ownership of share in the BL&P (Emera) company. When is the NIS going to dispose of its ‘insignificant’ minority holding in Emera?

What is the NIS going to do with the proceeds from the sale of the RBL share? Buy more government junk paper?
We know what this DLP administration will be doing with proceeds from their 18% holding in RBL. It will be used to upgrade the QEH as promised.

For the umpteenth time, credit unions are BANKS that are owned and operated by and for the benefit of their members. Only members can use the services of credit unions. Unfortunately, credit unions are prevented from doing many of the things that commercial banks do because of Government policy and legislation.

With an unprecedented number of credit unionist on the Government side in Parliament, we would have expected some ease in the restrictions. Mind you, I do not think that we can now rely on the immediate past president of COB since the members, at the last AGM, showed them the door. I think that he was reluctant to go and the knob hit him in the rear.

Sent from my iPad

@ Caswell
…and for the umpteenth plus one time…
Wunna going keep on kicking that dead horse….shoite man, there are many ways to skin a cat. This is now ’bout 25 years you trying this one skinning knife…. You can’t see it dull…?

If wunna OWNED a bank, problem solved.

@To the point

So explain this comment you made earlier:

Submitted on 2012/12/27 at 8:52 AM

@Dacid

i could have predicted your response. There is something called the opportunity cost of capital, and if u are getting 4% and you can get a higher yield with similar risk, what will you do? Or if u r getting 4% and the market is soft and you have a high interest debt and you can liquidate assets what will you do with the money.?

I can’t for the life of me understand why anyone in bim would feel pain that they now own very little of anything of significance on the island. I know i will take some talk for this but, WHEN YOU START LOVING TO SEE EACH OTHER PROSPER AND PROGRESS YOU WILL FEEL NO PAIN. Stop the nasty mentality of fighting down each other, stopping each others progress and spending the better part of your lives, that was given to you as a gift, making each other miserable and unhappy. NOW BRING IT ON!!

The milk debate … HA HA HA … Farmers and employees saw this coming years ago when there was a take over bid from Banks Holdings that was easily facilitated by the then Chairman of Pine Hill, CO Williams and his brown nose President. Both of these men were in quick time pushed from the nest, just desserts … but so too were ALL of the people who orchestrated the revolt against the Board and the Share Swap campaign …

@leo sobers

According to the Companies Act once the company is successful in garnering not less than 90% of any class of shares offered (BNB) then it triggers the the take over bid for the remaining shares. According to the Act the right of the minority shareholder is to ensure there is fair value offered. This seems to be the only basis the minority shareholder can fight the issue.

See Act:

http://www.investbarbados.org/docs/Companies%20Act%20-%20CAP%20308.pdf

Hopefully other in the BU family maybe able to elucidate some more.

I say make a run on the blasted Bank … Wait it ain’ their fault … Well mek a run on the blasted Government … wait but that would mean another five years of Owen Arthur …

Wah to do …?