Credit Unions Must Deposit With Banks According to the Law

Hally Haynes, president of the Barbados cooperative Credit Union League

Hally Haynes, president of the Barbados Co-operative Credit Union League

The issue which has erupted about whether credit unions have been directed by the  Financial Services Commission (FSC) to shift deposits held with non banks to commercial banks continues to gain momentum. The President of the Barbados Economic Society Ryan Straughn added his voice today. The unravelling saga has raised several issues which should concern Barbadians whether members of the credit unions or not.

The Barbados Co-operative and Credit Union League (BCCUL) is the umbrella body of credit unions in Barbados and should be the only entity making statements on the matter.  The matter which is playing out in the media makes it seem that it is a City of Bridgetown and Financial Services Commission affair.  Of concern to many is the statement issued by the BCCUL which was reported in the Barbados Today “…further, the Barbados Co-operative & Credit Union League Ltd., the apex body for credit unions and co-operatives in Barbados, totally rejects the notion of any ongoing row between the FSC and credit unions on this or any other issue. The pertinent facts surrounding the issue are as summarised below”.

For anyone to suggest that the FSC has issued a directive to force credit unions to transfer all deposits held with non bank institutions to banks in order to force a take up of government treasuries is speculative at this stage. BU is willing to be proved wrong. Further, BU has had a look at the Co-operative Societies Act Section 34A and the law supports the fact that credit unions must be placed funds with banks or other credit unions regulated by the Act.

What it says to BU is that we should be also asking why under the old dispensation credit unions were allowed to contravene the Act. We have been critical of the Office of the Supervisor and its weak supervision of CLICO Insurance Ltd. Should we be similarly critical of the former Registrar of Cooperatives?

Here is what the Act states:

34A. (1) The funds of a society, including the reserve, may
(a) be deposited in
(i) a bank licensed under the Financial Institutions Act;
(ii) a society registered under this Act; or
(b) be invested in
(i) securities issued by the Government of Barbados;
(ii) securities, the payment of interest on which is guaranteed
by the Government of Barbados;
(iii) subject to subsection (2), securities issued in Barbados
by a company incorporated in Barbados and listed by the
Barbados Stock Exchange, if the company has paid a
dividend on its shares for the preceding 5 consecutive
(iv) subject to subsection (2), securities issued in a member
state of the Caribbean Community by a company
incorporated in that member state and listed by the Stock
Exchange of a member state of the Community, if the
company has paid a dividend on its shares for the
preceding 5 consecutive years;

Co-operative Societies Act

106 thoughts on “Credit Unions Must Deposit With Banks According to the Law

  1. This Democratic Labour Party Government will never get it right.
    They have the reverse Midas Touch
    The Idiots that voted for them in the last BUY ELECTIONS are just that–Idiots .

    When I heard Reggie Hunte attacking the Private sector the way he did yesterday, it confirmed to me why Barbados will never do well under the DLP. A similar thing happens in England where one party never gets it right with the economy.
    DLP is Bad for Barbados. They might be trying for all I know but really they aint cutting it———-

  2. @David.
    I have not yet read the act in its entirety, but right away I see a difference in interpretation of language being used. Your headline says that “Credit Unions Must deposit…However when I read section 34A of the act it says …”The funds of the society may…” There is a vast difference in law between “must” or “shall” (implying compulsion) and “May”; (the language of the act, implying a choice,), be deposited in a Bank, and then lists the other institutions where the money can be invested, and the conditions. As far as I know the act has not been repealed or changed, by Parliament,, so to accuse the government, even by implication, of forcing, or compelling, Creit Unions to do something different is just spreading false propaganda.
    If Credit unions in the past, strayed from the guidelines stated in the act and they are being brought back to do what they should have been doing all along, is no cause for alarm. The Government is ensuring that the people in charge of the funds of credit union members do what is right to protecct the members.
    Sorry Just Asking,, remember what happened to Midas? He was so avaricious that in his attempt to make everything turn to gold, it came to the point where he could not even eat for his food turned to gold and he perished. I differ from you because based on past history the DLP is good for the people it brings them to reality and makes the tough choices.

  3. Alvin………….i think people are more concerned about the timing, and as i stated sunday when the speculation started that laws, particularly as they relate to finance are susceptible to several different interpretations, why i told Hal i was not suggesting anything, i learned that in the banking system. Caswell, i am sure will have a take on it.

  4. Bank of Nova Scotia posted a second-quarter profit Tuesday of $1.6-billion

    The 3 Canadian banks in Barbados may be a good place to deposit Credit Union money.

    I don’t know much about banking and would like to hear from the BU banking experts.

  5. @Well Well
    People have a habit of being premature, especially in their anti government comments.. As far as I know the island has not been turned into a dictatorship. the way to change laws or Acts passed by a government is through the parliamentary process.So if it has not been passed through parliament why get on as if it has. Wait. I have not yet read of any comments by the opposition.

  6. Alvin……people have become very skeptical, both parties have a history of passing or changing laws and not telling the taxpayers anything, this is a lot of money at stake, any wrong moves and it can cause untold suffering.

  7. Why is Caswell’s credit union having a war of words with the regulator in the public? Why is the BCCUL saying through its president that the matter is under control?

  8. @Alvin

    You should always read in a context. Here is what Section 34A (3) states:

    “(3) Where the funds of a society are invested in a manner that is
    not in accordance with subsections (1) and (2), no action shall be taken
    against that society for a period of one year after the commencement
    of this Act.”

  9. Barbados inflation has been bordering on 8% for years. The Banks are offering 2 – 2.5 on fixed deposits. The credit union members are guaranteed to become significantly poorer on an annual basis as a result of the spread.

    National insurance funds were not treated in the same way as they are taken from people by law and with the promise that not only will the funds be safe but they will produce a return that will better mitigate against inflation. National Insurance funds are sometimes exchanged for real money and placed in investment houses overseas or they may find there way into bricks and mortar, which unfortunately results in the Government being the major tenants and rent payers. They have been used to seed the Enterprise growth fund and Fund Access, activities that are underwritten by tax payers, at rates that are far better the the fixed deposits on offer, and so on.

    The point that I am making is:- why should the beneficiaries of all of this Credit Union liquid be the very institutions that starve the development and diversity of new and productive enterprise. Banks in Barbados are agents of stagnation and fuellers of foreign exchange leakage activities. They are the problem. Of the financing houses they are the only ones that the term “moral suasion” is utilized (and Frequently) in describing the relationship between them and their “supervisory” agency …

    I am of the belief that banks are far far more involved in the funding of political campaigns than one would normally think

    • @Baffy

      The issue here is simple. Has the FSC enforced the law? We can debate if the law is asinine as a separate issue.

  10. Reading legal jargon has never been something that I pride myself with … They are a lot of guys on the blog that can toe to toe with you on that. I am prepared to talk about the appropriateness … so maybe I am in the wrong place

    • @Baffy

      The reason why we must distill the issue is because it makes for political fodder to the detriment of the credit union customer. Why should this become a public shouting match which may lead to customer confidence being eroded if the FSC is acting within the law?

      The law should be attacked and further why was it not being enforced by the Registrar of Cooperatives? Against the background of weak governance we need to ask the question. Again BU will repeat another question: how many of you currently have deposits with Signia, Capita, Consolidated and other non bank institutions? How many of you have your personal money with banks? So far BU is not been hearing this discussion coming out. Has the FSC seen a weakening of the non bank sector and therefore decided to raise a red flag? Here is what President Hally Haynes is quoted which agrees with the argument that the legislation is restrictive:

      However, it is noted that some provisions in the current legislation governing investments, in their strictest literal interpretation may be restrictive, given the changing financial landscape. Against this background, the FSC and the league have agreed to work together to address any anomalies that exist in the current legislation. “This process may involve changes to the legislation to create a more enabling environment for credit unions to support their growth and further development

      BU has always advocated the need for ordinary citizens to be able to grapple with basic legal verbiage as a perquisite to informing public discussion debate.

    • Perhaps the current legislation governing credit unions makes the argument which some have put forward of a Cooperative Bank.

    • @Baffy

      Now we are getting closer to the argument. It maybe more of a governance issue. Also note that because the FSC is responsible for non banks it does not mean that the risk profile of their balance sheets equates with banks. We need to remove the emotion and factor the realities. BU has highlighted the poor state of Capita’s balance sheet for sometime now.

  11. Peter Wickham last week was saying that he agreed with the Government stand since the aim was to protect the depositors money … Peter reads minds! If there is any degrading in confidence by the public, it would be in the Credit Unions since they will be transformed into being mere agents of the Banking fraternity. If the FSC is only doing its job well fine, but are they not also responsible for the same Signia, and Capitas and Consolidateds as well? Now who actually raised the red flag, was it the knowledgeable FSC or the Cabinet?

    • @Baffy

      Again we go back to Haynes quote in the Barbados Today. The umbrella body has stated that it is currently engaged in discussions with the regulator. There maybe some insight to be had here.

    • @Baffy

      Agreed, let us see how the debate goes. The financial sector in Barbados as we have stated in the past has had a free pass because of a dearth of financial analysis from those who we rely on. Many of these institutions lend a significant part of their portfolio for vehicles. In the current environment what kind of questions should we be asking when probing the balance sheets of banks and non bank?

  12. You know I do not know how much time I have left on this Earth, so for me activities that may take years to resolve will never engage my attention. I just need to know who raised the flag ..?

  13. Many of these institutions lent on the basis of a “job letter”. You are asking me to use two different sides of my brain. Assessing balance sheets to determine the longevity of the finance houses’ capital base may be good for the general consumer but for me there has to be a role for these pools of funds to play in the core development of the community as well. The FSC and indeed the Central Bank and Supervisor of Insurance would have learned from the Trade Confirmers experience. These establishments are manned by a number of people, and it is hard to believe that they can even be expected to be caught napping at the same time. Clico is a bit unique for I do believe that partisan relationships played a role in the outcome. I can’t answer your question, in part because I do not want to

  14. Hally Haynes

    Big time Barbados Labour Party supporter. Now I know where “onions” got his information.

  15. @ David
    Of course the FSC is merely enforcing the law. The problem is that stupid, backward Law.
    Essentially this law premises that black Bajans (who own and manage credit unions) have not the sense or ability to manage THEIR OWN PERSONAL MONEY (which is what credit union funds represent – thus members only) so the brilliant Black government of Barbados decided to bring these funds under the same controls as bank funds, which are funds belonging to OTHER PEOPLE (depositors and investors) managed by the notoriously crooked banking executives.

    Why should the same controls be applied to a closed set of persons managing THEIR OWN money with cooperative controls that have outperformed ANY OTHER METHODOLOGY in terms of governance anywhere… are applied to thieving bankers who are in control of OTHER PEOPLE’S funds….?

    Want to know why….?

    Because in the 1990s when Credit Unions begun to take off and to win the confidence of the mass of Bajans, and when they launched that Insurance Company, the business sector recognized the potential POWER of the movement.
    They were able to convince our brilliant political leadership that “safeguards” needed to be put in place (they really meant safeguards to their businesses) and (somehow) got these Laws enacted which essentially places these credit union funds under bank control AND under banking controls.

    Bushie and a few others have long suggested that the counter move by the movement is to get a bank….a normal bank – just OWNED by the credit union.
    But Caswell and a few other “tactical ignoramuses” have killed that move.
    If the movement had a bank, it would FULLY nullify this idiotic law passed by a black Bajan government to stifle a black financial empowerment movement.

    …..of course as Bushie said somewhere else, politicians were also afraid of the collective (voting and lobbying) power of this movement and they destroyed its leadership at the same time by enforcing a rotation system which ensures that a strong leader can never emerge, and they rotate their operatives through the movement to keep it disorientated. ( Maxine, Paul, Hally, Garner etc)

    Thanks to the black government of Barbados for their lack of vision and foresight, – and to Caswell and his poor tactics for allowing them to get away with it.

    …a fool and his money are soon parted.

  16. @Bushie

    And this is why the BU blog focuses on the fact the law is being enforced and this is where the point credit union must also focus. The strategy must be how to circumnavigate the restrictive legislation. Shouting in the public space will not cut it.

  17. Basically this epitomises ALL that is wrong in Barbados.
    Manipulation of the law by those who CAN; to acheive results that are beneficial ONLY to them.
    Regardless of the EFFECT on or the WILL of the PEOPLE.
    those who run the Credit Unions were to have the BALLS,they would as ONE ,stand up and say .
    The RESULT would be a RE- enfrainchisement of ALL working people in Barbados.
    The GOVERNMENT with a “Majority” of TWO, will Damn soon,”shut up and put up”.
    This is a ONCE IN LIFETIME opportunity to reassert THE WILL OF THE PEOPLE.
    Recognise it for what it is!! ACT ON IT.
    Apart from Concede,to the fact they are ELECTED BY US to SERVE US.

  18. Of course there were a couple of instances in the past where a bank or two were outed for contributing small amounts of money to campaigns, you know a couple thousand here, a couple thousand in another’s private pocket, but I would really love to have a hint at the true contribution that these entities make in shoring up their lobby … It has to be substantial.

    Now there is also the issue of the forex that is available to international banks that a Credit Union or other locally created banks would find difficulty in competing against.

  19. @ BAFBFP | May 29, 2013 at 8:31 AM |
    “Now there is also the issue of the forex that is available to international banks that a Credit Union or other locally created banks would find difficulty in competing against”

    And do you see now why it is almost impossible for any cooperative credit union body to establish a successful bank as we know it because it must be involved in the handling of foreign exchange transactions?
    Unless this bank has access to foreign exchange and the ability to establish business links with ‘corresponding’ overseas bank it would just be a local piggy bank.

    Access to Foreign Exchange is key to any bank’s survival in Bim whether it be within the credit union movement or with the Hal Austin’s preferred Post Office bank.

  20. @Miller

    Correct and this is why BU has been very curious about what consultant Sir Courtney Blackman has been communicating to the BCCUL.

  21. We have lately argued on BU that liquidity in the banking and financial system of Barbados is low or running low.

    We have also in doing so used direct and circumstantial evidence to support this position.

    Therefore the notion by some persons in the country that liquidity is high in the local banking and financial system is an extremely farcical one.

    The alleged action of the FSC in recently directing local credit unions to remove their and credit union depositors funds from out of non-bank financial institutions to commercial banks is therefore another piece of evidence that liquidity is not high in the local banking and financial system.

    As a matter of fact we reasonably expect that in the not too distant future that if the government continues to pursue the kinds of fiscal, monetary and financial policies that it has been carrying out over the last years that there will be the collapse or withdrawal of another financial institution in this country.


  22. Banks operate with Fractional Reserve system … Credit Unions do NOT have that luxury. Now what could be more risky than that particularly for a locally created bank unless it is underwritten by tax payers.

  23. What point Baffy, Wuh that dull enough…. 🙂

    A credit union owned bank would have IDENTICAL LEGAL access to foreign exchange as any other bank. Miller have no idea what he is talking about….

    The same way that a set of shareholders can own CIBC, credit unions / the BCCUL/ even credit unionists can be shareholders in a local bank. The insurance model is there as a guide.

    Wunna people have ANY idea of the size and extent of the international cooperative body? In many countries, cooperatives DOMINATE the business landscape. Banking, Insurance, Utilities, Retail …you name it….

    where there is no vision….

  24. The credit unions in Barbados have done extremely well, I don’t believe the banks in Bim have as much liquid cash as the credit unions, that may be a factor to what is now being conceived.

    On another note……..France has just blacklisted Trinidad as well as Dominica, they are on a financial aid blacklist.

  25. Alright Bush Tea

    I am hearing you on that … I do not know that much about the international Coorporative Movement to speak with the kind of confidence that you can on the arrangements that exist. So should I believe you. Should a government base a decision because there might very well be what amounts to be only hand shake arrangements within the international movement.?

  26. Where is the evidence that the FSC has issued a directive to credit unions regarding deposits held with bank? I have not seen any confirmation that the directive from the FSC dealt with deposits.

  27. @Bush Tea

    To repeat, it would be nice for the credit unions using its BCCUL umbrella to update its membership. There is a legitimate concern about how credit unions would win business to satisfy forex and other demand. A credit union bank would have to win customers that generate forex no? This is Barbados don’t forget.

  28. @Brutus

    Until we see that letter BU will categorise the noise around this issue as just that, noise. We have to be guided by Haynes and the BCCUL. If COB has an issue with the BCCUL then say so.

  29. @ Bush Tea | May 29, 2013 at 9:40 AM |

    So, BT, enlighten us what is retarding the establishment of a “Credit Union Cooperative” bank?

    Is it because a black government is stopping them by not amending the legislation to facilitate such?
    Is it because of the ‘crabs in the barrel mentality among the black management of the various credit unions?
    Is it because of Caswell objection to such a bank or cowardice and failure to expose what really is going on?

  30. Three bond restructurings totaling about $9.7 billion in the Caribbean this year are failing to ignite economic growth and may not help the region avoid more defaults, according to Moody’s Investors Service.
    Enlarge image Belizean Prime Minister Dean Barrow

    Belizean Prime Minister Dean Barrow said the government will “fine tune” its debt management by enacting laws that “modernize the mechanisms through which domestic debt is raised” as well as “upgrade debt monitoring,” Photographer: Yuri Cortez/AFP via Getty Images
    Enlarge image Worse-Than-Cyprus Debt Load Means Caribbean Defaults to Moody’s

    Dive boats off island, South Water Caye, Stann Creek, Belize. Photographer: Mark Webster/Getty Images
    Enlarge image Worse-Than-Cyprus Debt Loads Mean More Caribbean Restructurings

    The average debt for a Caribbean nation compared to the size of its economy stands at 70 percent, with Jamaica and three other countries above the 93 percent ratio that forced Cyprus to seek a European Union-brokered bailout last month, according to the International Monetary Fund. Photographer: Prakash Singh/AFP via Getty Images

    The bond swaps this year didn’t go far enough to fixing the Caribbean’s “unsustainable” mix of debt and deficits, Warren Smith, the president of the Caribbean Development Bank, said May 22. Jamaica and Belize, which restructured about $9.5 billion in local and global bonds this year for the second time since 2006, face a “high probability” that they will default again, Moody’s said in a May 20 report.

    Among Caribbean island economies, only the Bahamas is expected to grow more than 1.5 percent this year compared with 4 percent for Latin America, Moody’s said in an earlier report. Without faster growth, repeat defaults may become common as Caribbean governments find it easier to cut bond payments than spending, said Arturo Porzecanski, a professor of international finance at American University in Washington.

    “These countries are exhibiting an increased unwillingness to pay,” Porzecanski said. “We may be seeing the birth of a region of serial defaulters.”

    The average debt for a Caribbean nation compared with the size of its economy stands at 70 percent, with Jamaica, Antigua & Barbuda and Grenada above the 93 percent ratio that forced Cyprus to seek a European Union-brokered March bailout, according to the International Monetary Fund and Moody’s. Jamaica’s debt-to-GDP ratio reached 140 percent last year.
    ‘Out of Reach’

    “A sustained reduction in debt in the region over the next decade will require a combination of aggressive fiscal consolidation and increased economic growth,” Edward Al-Hussainy, a Moody’s analyst for the Caribbean, wrote in a May 20 report. “However, both goals are increasingly out of reach.”

    Higher interest rates tied to previous restructuring agreements contributed to a 12.7 percent jump in Caribbean debt from 2008 to 2011, reversing a 15 percent decline over the previous three years, the IMF said in a November report. Antigua & Barbuda and St. Kitts & Nevis restructured debt in 2010 and 2012, respectively, making the past three years the highest on record for Caribbean defaults.

    “It’s a self-reinforcing cycle,” Al-Hussainy said in a phone interview from New York. “Other governments may be looking around and instead of waiting for a crunch, decide to take their chances now.”
    Bond Returns

    Central American and Caribbean bonds have returned 1.8 percent this year, compared with declines of 1.3 percent for emerging market bonds and 2.1 percent for Latin American debt, according to JPMorgan Chase & Co. indexes.

    Investors are taking advantage of higher yields for Caribbean debt now and betting they can sell ahead of any payment problems, said Carl Ross, managing director at brokerage Oppenheimer & Co. in Atlanta. The results are also skewed, he said, by a 53 percent return on Belize’s debt this year, which covers a period in which the country emerged from default after skipping a $23 million coupon payment last year.

    Even after its restructuring, Belize’s bonds yield 9.7 percent, the most among 58 emerging market economies tracked by JPMorgan’s EMBIG index after Argentina and Venezuela. Jamaica’s debt yields 8.3 percent. The yield on Cayman Islands bonds was 5.6 percent, compared with about 3.5 percent for similarly-rated China and Chile.

    The bond rally in Caribbean debt is “more of a fluke,” Ross said. “It’s not reflected in the fundamentals by any stretch.”
    Tourism Data

    Belize, on the Caribbean coast in Central America, is forecast to grow 2.5 percent annually through 2015, Standard & Poor’s said March 20. Belize this year agreed to pay 56.75 cents on the dollar for $544 million of defaulted bonds after initially offering 20 cents following a missed coupon payment in August. The country’s debt load will fall to 71 percent of GDP this year from 77 percent in 2011, S&P said.

    “We think the debt restructuring only delayed Belize’s problems, and recent efforts to solve fiscal issues have been uninspiring,” Flora Hsu, an emerging markets analyst at Nomura Securities International Inc., said in a May 22 report.

    Belize’s government will “fine tune” its debt management and “upgrade debt monitoring,” Prime Minister Dean Barrow said in a March 1 speech.

    Yields on Jamaica’s dollar bonds due in 2019 fell to 7.8 percent yesterday after reaching 9 percent in February when the government undertook a $9 billion local debt restructuring.
    Economic Contraction

    Jamaica’s GDP has contracted four quarters in a row, falling 0.9 percent in the final three months of 2012. International reserves tumbled to $866 million last month, prompting the central bank to say it would start selling a one-year, dollar-linked bond to shore up investor confidence and introduce two new certificates of deposit.

    The Jamaican dollar has tumbled 6.2 percent this year through May 24, the most among Latin American and Caribbean currencies tracked by Bloomberg after the Argentine peso.

    Jamaica’s local debt swap “buys a bit of breathing space, but I don’t think it addresses the fundamental issues in that Jamaica is verging on insolvency,” said Stuart Culverhouse, chief economist at Exotix Ltd. in London.

    To prevent another restructuring, Jamaica’s government established an oversight committee and set up an office in the Ministry of Finance dedicated to implementing economic reforms, Finance Minister Peter Phillips said in a March 16 interview. The IMF said May 21 that the country is making progress in improving its economic prospects, aided by a $932 million loan from the Washington-based lender.
    $193 Million

    Following the restructurings by Belize and Jamaica, Grenada said on March 15 it would swap $193 million of global bonds as debt-to-GDP burden reached 105 percent. The island previously defaulted in 2004.

    Holders of Grenada’s dollar bonds should expect a “significant” reduction in the value of their holdings as the island seeks its second restructuring since Hurricane Ivan in 2004, said Culverhouse. According to the terms of Grenada’s 2004 restructuring, the coupon on its dollar bonds was set to climb to 4.5 percent in September from 2.5 percent last year, eventually reaching 9 percent in 2018.

    “Grenada has simply run out of money,” Culverhouse said on a March 21 conference call.
    ‘One Element’

    “The debt restructuring is only one element of a broad economic strategy to put Grenada’s fiscal house in order, grow the economy and provide jobs,” Carlyle Glean, the island’s then-governor-general, said in a March 27 speech to parliament. “Ultimately, it will help Grenada to meet its obligations to its creditors in a timely and sustainable manner.”

    Economic pressures are also weighing on countries that don’t have a track record of defaults. Yields on Barbados’s bonds held near a five-year low of 5.96 percent last week. At the same time, tourist visits declined 12 percent in April from a year earlier, the 13th straight month of declines, according to the country’s central bank. The island nation lost its investment grade rating with Moody’s in December when it was lowered to Ba1, putting the country of 256,000 people in the same category as Morocco, the Philippines and Guatemala.

    “The country’s growth prospects remain very limited,” Moody’s said. That is “a ratio generally reached only by much wealthier countries with considerably larger economies.”
    Ability to Pay

    For the government, the cost to service debt is “very low” at 7 percent of GDP, central bank Governor DeLisle Worrell said at an April 10 news conference. “As far as the foreign investor is concerned, there’s absolutely no reason why they should have any apprehension about Barbados ability to repay debt.”

    With much of the region struggling under elevated debt burdens, the Caribbean Development Bank praised the Cayman Islands and other Caribbean nations under administration by the U.K., which has put limits on borrowing and helped force balanced budgets.

    The yield on 2019 dollar bonds sold by the Cayman Islands fell to a record low 2.75 percent on May 16.

    “Markets have been very clear you need to have the right debt-to-GDP ratios,” Rolston Anglin, the deputy premier for the Caymans, said in an interview in Rio de Janeiro. “One of the things we’ve done is made a commitment to not incurring central government debt for the next four fiscal years, and will try to live within our means.”

    To contact the reporter on this story: Eric Sabo in Panama City at

    To contact the editors responsible for this story: Bill Faries at; David Papadopoulos at

  31. Really surprised to hear Sir Charles Williams on Down to Brass Tacks expressing concern that it appears difficult to borrow US$10 million to build a new club house at Apes Hill. With all the money slopping around in the banking and credit union system. Am I missing something? Surely with all that land, he has the collateral to borrow a relatively small amount of money.

  32. @ Miller

    So, BT, enlighten us what is retarding the establishment of a “Credit Union Cooperative” bank?
    …and others with similar conservative predispositions and little belief in themselves…..
    This died when the fellow Doyle left. And has been completely DESTROYED by Miller and his government cronies who put systems in place to ENSURE that strong leadership DOES NOT EMERGE in the movement.

    Caswell abetted in this too – because he operates on the belief that honest people do not exist and that it is best to treat everyone as a thief…..

    No leadership… vision…no bank.

    @ David
    If Credit Unions owned a BANK, it would be a BANK…. Just like any other bank.
    How effective it is would depend on the management, marketing etc…..BUT, the shareholders would be the membership.

    Bushie is NOT talking about creating another credit union or cooperative bank…..but about “IF YOU CAN’T BEAT THEM, JOIN THEM.”

  33. Now that is what pisses me off and disgusts me with Bajan leaders, this story in the Trinidad Express should have also been front page news in newspapers in Barbados, the jackasses. That is why the leaders from the metropolis’, the world bank, IMF and crediting rating agencies now tell the media everything cause they know these small minded, petty and trifling ministers will not say a word, if they could get away with it.

    Adrain………personally, i don’t think cow should get a dime to build another club house, they got better things to do with money in Barbados, read the above article and see what the leaders of the new world are productively prompting Caribbean leaders to do, cow needs to go and build a pen, it would be cheaper.

  34. And the DLP better not be taking poor people’s money now lodged in the credit unions and lend it to the likes of cow and jada and those other leeches either.

  35. Adrain……………you see, it’s not business as usual for the minority whites on the island either, the world has changed and everyone has to get in tune, no more using up the money of the majority blacks on the island to enrich yourselves and keep others in abject misery and as some of you believe, in their places. New World Order……….the government will now be forced to use their brains and the people’s money wisely, the money should be kept within the black community.

  36. Cow has a lot of land “ripening” … He could sell some. Look Busy had a project two years ago that was funded by international ppl … can’t remember what is was, but 10 mil is not a big ask, and in the same way David is asking about the hidden background to a response about the practices in the Coop movement as it relates to issues of trust and motives, it too can be said about finance houses and their assessment on the future of tourism related enterprises in Barbados. COW can’ put he hands pun 10 mil (his home is worth at least that much ..) … David penning a story already ..

  37. Doyle is one good fella. He was pissed as hell years ago when the big up ACCA’a and CGA’s stepped into the limelight and changed the socialist direction of the entire co-op campaign … You’re talking at least twenty years ago. Doyle is a product of the seventies … the era of the temps and the jacksons and the supremes … the era of love

  38. Baf……………..we have to be very vigilant, the education we received now has to come into play with a heavy dose of common sense.

  39. Wanna should hear Chriss sounding off at the Chamber of Commerce meet….man he was in his element blasting anybody that say anything detri..bout our well oiled and smooth running machine (like it using Castrol E) guvernment….Again no statutory lay offs in the mix Caswee.. now thrice reiterated…praises .

  40. Dr. Love………….that is what the bajan whites have been continually allowed to do, usurp the money of poor people on the island, while banking their own money in foreign jurisdictions, either the party ends now or the population will suffer. Adding insult to injury, cow expects to be paid by government for hiring workers………….as i said, cow needs to go build himself a nice cowpen or an ape sanctuary up Apes Hill for him and his friends so they can boast about their achievements……………stop letting them build these fancy clubs off the backs of taxpayers where the ordinary taxpayer cannot enter unless they are workers at the club………stop giving these Neandethals who feel black people on the island owes them their hard earned money a reason to practice their crap………….if they want money let them go to mother england, or somewhere in Europe to get it, those are the ones responsible for kicking out their ancestors, these politicians better wake the hell up.

  41. All of them all of a sudden realize just how much money is sitting in the credit unions and are vying to see which politician will be stupid enough to give them first dibs at the poor people’s money……………all eyes are now on that money, if i had my way i would chase each and every one of them of the island let them come out here and look for work, cause they could never do that to any of the governments in the North America or Europe, lazy bums.

    • @Caswell

      Without calling your name Minister of Finance has called you a liar today while addressing the BCCI luncheon. What say you!

  42. @ David (B.U.)
    Could you please make this contributaion an article? My email is currently offline and I won’t have access until Friday. How are you BTW? It’s been too long!

  43. Brother Bim…………..i feel ya, if they don’t change gears they may not have to worry about starving, there is already a plan in place to wipe them out, if they do not change gears.

  44. @ Well Well
    Its been a while my friend. ANd thank you. We should tell the people that “THE TIME IS NOW”!

  45. Bruddah…………… are welcome, there is no other time, and they will not be given any more time, so they better do something.

  46. David

    I did not hear the Minister, but so far three persons called to tell me what he has said. I tuned in to CBC Evening News but there was no reference, probably because someone there realised that the Minister had made a fool of himself. As I understand it, he gave a figure of 6000 persons and therein lies the truth. He is aware that there was a plan to terminate that number. I never gave a figure as none was given to me. He has in effect confirmed the plan without realising it. He can’t talk and think at the same time.

  47. Let it be known that I am against any move by credit unions to deposit the Bajan people’s funds into private banks. If anything, credit unions nationwide should push for massive administration reforms in that the BCCUL in order for there to be administrative autonomy and financial sovereignty in which it is subject to the Barbados Central Bank. If anything, this will lessen the likelihood of external debts in that the central Bank can receive (though not dictate) funds and/or loans from the Bajan people under the BCCUL umbrella. If it worked for Taiwan, can definitely work for Barbados!

  48. Correction: ” If anything, credit unions nationwide should push for massive administration reforms in that the BCCUL in order for there to be administrative autonomy and financial sovereignty in which it is [NOT MADE] subject to the Barbados Central Bank [but vice versa].”

  49. Bruddah……….sounds good to me, is there any law stopping the Credit Union from turning itself into a bank?

  50. @ Well-Well

    Not Currently. Only if the Bajan people formed a petition and held a national referendum could keep the BCCUL from becoming a Bank.

  51. @Brutus

    I saw the correspondence and i am not convinced that there is a directive. cob has been invited to a league meeting, as well as the other creidit unions.

  52. Bruddah………..then there you go, if there are no laws or regulations in place to turn the credit union into a bank, what’s taking them………….?? We should be hearing that the Articles of Incorporation for the bank was already filed.

  53. Should read: if there are no laws or regulations in place to PREVENT the credit union from being turned into a bank, we should be hearing that the Articles of Incorporation for a bank has already been filed. I really hope they are taking this seriously.

  54. @ Well-Well
    But that isn’t the case. As stated by B.U.; the talk of making the BCCUL into a private banking syndicate is more or less the sounding of alarms for the selling off of the nation’s treasuries. the big thing for me is; how do we demonstrate to the average “Jobe” that this is in fact detrimental?

  55. Won’t the deposit holders, the credit union members have to vote on any sales of assets, even by proxy? they should have that right.

  56. @ Well Well
    …are you aware of the option to keep quiet about things you know nothing about? Steupssss
    …Wuh you is ac now?

  57. Bushy……………..I am asking questions, do you mind? you are free to return to you scintillating talk on gays, no one is stopping you.

  58. Bushy, before you go back to your gay talk, without giving you too many details, I worked at one of the biggest conglomerate banks in the world, thing is, the caribbean banking system sounds like it’s very different in some ways and as you don’t mind poor people losing 1 billion dollars to thieves as long as you can talk gay, there are those of us who actually care about these people being able to enjoy their money, remember the likes of parris, cow, simpson et al are still around and lurking.

  59. @ Well-Well
    INDEED WELL-WELL they should. You really are a critical thinker!!! I truly am impressed with your logic!!! It brings me hope!!! Your enthusiasm has given me an idea as to how Barbados can further solidify it’s growth and uplift Bajans from the fringes of poverty!

  60. Perhaps, to keep it short, you should tell us the name of a few places where you HAVE NOT worked….! Or things that you have not done….

    So are you saying that you ARE aware that you need not comment on every thread all day and night?

  61. Bushie ….Well Well suffers from insomnia and is also an ” i ” specialist. I have done this , I have done that, I know it all etc. LOLL She is also known a motor mouth!

  62. Bushie and island………………i know what you two are specialists at and it’s talking about gays day and night, in the real world of North America, we do not have that leisure or time to speak about people’s bedroom business incessantly, we have to work and that work takes us to multiple places where we acquire multiple skills to use in an ever changing world, i quite understand that the only skills you two have are talking about other people’s sex life all day and most of the night, it even affects your work place life, that is island life, not so in the real world. So, having minded my own business for so many years and focused on acquiring usable and marketable skills, i have specialized, what do you think you two will specialize in if you have to leave Barbados? maybe talking about people’s sex lives, you would get killed.

  63. Bruddah…………if only the likes of Island and Bushy had an idea to offer on how to make a difference and stop the decay in barabdos, they do not know it but they are wasting their talents………………i am sure they will understand what i am saying when they turn 80 and are still talking about gays, who will more than likely be the people running the world.

  64. @ Well Well
    LOL. Likewise.
    don’t forget that the gays could also be writing their pay cheques to their ignorance and dismay…. ROFL. A funny row indeed.!

  65. So you see bushy and island……….it’s not about me or where i have worked or how much time i have to contribute on every thread, you are missing the point, it’s what i have to contribute without noticing or caring who else is contributing as long as they are contributing something useful and intelligent. Just let me know when you two have earned enough money to purchase the world wide web, then i will know my use of it will be limited, until then try and contribute something other than somebodies sex life bothers you.

  66. Bruddah………..these people are the most socially ignorant animals i have come across in a very long time, they are clueless as to what is happening in the real world as long as they can throw little knives and digs at each other, and the crab hole seems to be getting smaller.

  67. @ Well Well
    “… the crab hole seems to be getting smaller…”

    While the number of crabs is EXPLODING. Not a good concoction at ALL!

  68. Bruddah……….good for them, who is not watching other people’s sex lives will survive. Before we were so rudely interrupted by bushy and islandgal the gay talkers…………..i was asking you if the credit union members are not allowed to vote yah or nay in any sales of assets even by proxy, are they are not?

  69. @ Well Well
    And as stated previously (prior to the disruption), I whole heartedly agree with the option of member voting.

  70. Bruddah………………the credit union bosses, in my thinking could have the documents drawn up to reflect that all powers lie with the members as it relates to any sales of assets, i don’t see the government then having any power to roll in and sell off assets, particularly if they do not have any controlling shares.

  71. Why are we taking the conversation off track? To set up a bank requires approval from the government. It is what the BCCUL is currently pursuing. Go to the BCCUL website and look at the assets of credit unions in Barbados. If you subtract Public Workers, COB and a couple others what is left? The credit unions have grown but it does not mean they have cash to capitalise anything. Credit Unions by their philosophy are highly lent.

  72. David………………i am not on the ground in Bim so i don’t know who is pursuing what, that’s why i ask so many questions. I don’t know what you think about the matter, but would it not be wiser for the unions to have their own bank rather than transferring funds over to foreign owned banks? I was reading this morning about the “blacklisting’ of Trinidad by France, the French government is denying it saying the entity who put them on this list is kinda, sorta, maybe not quite following government procedures but doing their own thing, but government can’t stop them because they kinda, sorta, maybe don’t have the power to, i am saying that because it all relates to foreign entities dictating procedures for banks worldwide……… it not better for credit union members to be owners of their bank?

  73. Bruddah……………As I just told David, as i am not on the ground in Bim I don’t know exactly what or who is involved and definitely don’t know their true intentions, we have to know the dynamics that are currently in play and who stands to gain or lose………..all i can say is i hope it’s not the members of the credit union who have their cash deposited there.

  74. @Well Well

    It is public knowledge (google it) that the BCCUL has contracted Sir Courtney to prepare a prelim study of the feasibility of seeking approval to launch a bank. Of interest is that COB has voiced concern about credit unions going this route.

    The issue here is credit unions forced to deposit excess funds with banks. Even if they own a bank they will still be forced to deposit with other financial institution to mitigate risk.

  75. @ David (B.U.)
    “It is public knowledge (google it) that the BCCUL has contracted Sir Courtney to prepare a prelim study of the feasibility of seeking approval to launch a bank. Of interest is that COB has voiced concern about credit unions going this root.”

    If what you say is indeed true, then BAJANS should be taking to the streets. Credit Unions are meant FOR THE PEOPLE. TO force credit unions to “Deposit” excess funds into a Private Bank is beyond RECKLESS; IT IS STUPPID AND IS A DIRECT THEFT FROM THE PUBLIC! We need to Educate Bajans about the implications of this!!!!

  76. Bruddah…………i was trying to gather more information on this before i said anything, banking laws can be pretty complex and i know of mergers and acquisitions or hostile take overs, but i have never heard of moving money from one entity into the banking system without any apparent protection mechanisms in place, it seems suspect to me, but again, the finance laws are always subject to different interpretations…………the lawyers should know best.

  77. @ Well-Well
    Then the question we should ask is “Who is funding the attorneys? And to what interest?”

  78. Personally, i know there are very few attorneys who can be trusted in Bim, the ones doing corporate law would be handling such transactions and in a case like this, everyone has to be suspect unless or until they prove otherwise……….this is a lot of money to be playing fast and loose with, and as i said earlier the credit union members have to be extremely vigilant, it is now we will get to witness the kind of stuff the present PM is made of, being an optimist, i am willing to give him the benefit of the doubt and say he will make sure that the union members money is well protected and kept within the black community, if he so much as blinks and allow the minority or anyone else in the country to leech off these poor people and enrich themselves while still denigrating the majority in the country, i will be one of those up front in making sure he never forgets its.

  79. @ Well Well
    If the PM doesn’t do as he is supposed to (which is to protect the nation at all costs); then ALL BAJANS SHOULD REVOLT IN OPPOSITION TO THIS SHAM OF A “DEMOCRACY”! I WOULD CALL FOR A REVOLUTION TO THROW OUT ALL THE CORRUPT POLITICIANS!


    Bruddah-Bim@ that is the road them crooks going on , 1937 about dam time the crooks move or get push out of office ,


    Well Well @ A run on the Banks and the credit unions next , The we will see whats in the accounts , as you can see PONZI is on paper statements , and nothing in the bank , for they all out spending your FUNDS having FUN.-D .. well above their pay grade.
    I took all my money out long time from banks , I dont even have an account with over 25 bds in it , I have more in my pocket , Nice and safe.


    Well Well @ if they would watch money master on You tube , its about 3 hours long . They would do some thing better with this so called money. We bought Silver at 4 US a BAR in the 90s now its more, . Gold also on hold in smaller amounts. Printing on 65%linen and 35% cotton and they call it paper. Buy Silver in hand and not in stocks..999 or .9999 Silver. Only One God , but many GODs and gods.

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