Uniformity & Coherence instills Stability and Confidence –
Vernon Jeffers via Social Media challenges
My new question is, who is driving Montserrat’s development agenda.
Can we or should we have one Minister encouraging the Diaspora to invest in their homeland while another Minister on ZJB supporting the ECCB’s new Banking Act which calls for the reduction on interest rates paid by our local banks on savings accounts.
Long before the Volcano, a sizeable portion of Montserrat’s foreign currency earnings and revenue generator came by the way of remittance from the Diaspora. Savings Accounts interest rates paid by banks on Montserrat, traditionally, have always been higher than that paid by other banks in the Eastern Caribbean States. The question is, why an elected Minister of Montserrat would so gleefully ready to enact the ECCB’s proposed Banking Act which will hurt Montserrat’s banking savings accounts.
Let me say this to our goodly Minister, the ECCB’s proposed Banking Act has nothing to do with the IMP, the US Treasury Department or the Bank of England. This proposed Banking Act is a concoction devised between St. Vincent’s radical Prime Minister, Gonsalves and the ECCB’s Governor/Chief Economist, Sir Dwight, in order to assist “Borrowers” in the Windward Islands with their nontraditional bank loans.
Mr. Minister, in its present form, this ECCB proposed Banking Act is bad for Montserrat.
Vernon Jeffers continues There two main commercial banks currently on Montserrat, the Royal Bank of Canada and the Bank of Montserrat. It is through these two Banks (Royal Bank of Canada and the Bank of Montserrat) most Montserratians and friends of Montserrat have their few pennies saved.
Does the goodly Minister knows that St. Vincent is one the only OECS territories without a Royal Bank of Canada. Wouldn’t it be nice if he could find-out why?
Banking licensing fees and interest gained from savings accounts is of vital importance to Montserrat’s economy, the proposed ECCB Banking Act will put such in jeopardy.
Minister Hogan responds:
Hogan
Claude Bambi Hogan You reserve the right my friend Vernon Jeffers to share your views with our people, as do I. Among the red herrings of your view is that we would lose banking licence fees. Montserrat is a full member of the ECCB and we share in the annual profits of the bank and of course I’m aware that the bill is not perfect and I’m also aware that it would help bolster and secure local banks in the Windward Islands and consequently the entire East Caribbean currency union unless you have another plan. We are all ears.
Vernon Jeffers My Dear Friend, if you truly understand and believe all that you have said, then why are you so gleefully ready to enact a Bill that can and will possibly injure Montserrat’s economy.
Maybe you can tell me where I am wrong here: 1. Under current Laws & Banking Regulations, the Government of Montserrat is the sole issuer of Banking Licenses and under the proposed ECCB Banking Act, the ECCB will be the Banking Licenses issuer.
- Under current Laws & Banking Regulations, the Montserrat treasury charges and collects approx. $20,000.00 per year as license fee from each Bank operating on Monserrat, while under the proposed ECCB Banking Act, the ECCB will not only be collecting the Banking Licenses fees but will raise the fee to $80,000.00.
- Under current Laws & Banking Regulations, the interest rate paid to Montserrat savers is determined by both the local banks and the Government of Montserrat, while under the proposed ECCB Banking Act, the ECCB will be the sole arbiter in making such determination.
The foregoing are just few of the changes the ECCB Banking Act is proposing. So tell me Mr. Minister, are you comfortable in knowing that Montserrat will be surrendering its internal banking authority to the OECS Council of Finance Minister and the ECCB?
Ask yourself Mr. Minister, why after 30 years of going it by ourselves and have done damn well, why the sudden change to satisfy the economies of the Windward Islands. Charity begins at home and you are there to protect Montserrat first, second and last.
Vernon Jeffers By-the-way Sir, there is no “Red Herring” for both you and I are cut from the same PLM cloth and I wish you and my Country well.
