Hope in Sight for BAICO/CLICO Policy Holders

Hope remains in sight for BAICO/CLICO policyholders in Montserrat and the rest of the Eastern Caribbean Currency Union (ECCU).

The recent 107th Monetary Council meeting in St Kitts and Nevis stated that efforts are ongoing to secure additional payouts for policyholders.

Meantime, in related news, the Eastern Caribbean Central Bank (ECCB) Monetary Council las learned that the Eastern Caribbean Currency Union (ECCU) growth outlook is positive.

A meeting Communique said the St. Kitts and Nevis gathering last Friday received a report from ECCB Governor Timothy N. J. Antoine indicating the growth.

According to the Governor’s report, the ECCU economy continues to expand.

In addition, it said inflation is abating.

Regading Monetary Stability, the Monetary Council received the Governor’s Report on Monetary, Credit and Financial Conditions in the Eastern Caribbean Currency Union (ECCU) for the period January to December 2023.

The Report, titled The Big Push: Implementation for Impact in an Era of Elevated Uncertainty, provided an overview of the key risks to financial stability within the ECCU and assessed their potential impact in the near to medium term, while also focusing on the question, “What will it take to double the GDP of the ECCU?”

The Governor’s Report indicated that the post-COVID global economy – which saw a better-than-expected 2023 – has shown resilience that is forecast to continue into 2024.

Downside Risk: A slowing global economy and uncertainty portend headwinds ahead for the ECCU – particularly in Tourism, which had a strong rebound in 2022 that continued into 2023.

The report says that the International Monetary Fund (IMF) forecast, in its January 2024 World Economic Outlook Update, that global GDP is likely to grow 3.1 per cent in 2024, unchanged from 2023.

It adds that in the ECCU, the growth outlook is positive, the economy continues to expand and inflation is abating.

The report outlines that implementing strategic reforms is key for building resilience and elevating the growth trajectory. As far as Upside Risk is concerned, the report states that increased investments in areas such as food and nutrition security can build resilience against shocks.

Additionally, it reveals that monetary, credit and financial conditions in the ECCU remain stable and accommodative, as well as conducive to the stability of the currency.

The current backing in respect of foreign reserves is 95.13 per cent (as at 09 February 2024), up from 94.8 per cent which was reported at the 106th Meeting held on 24 November 2023.

Having considered the state of monetary, financial and credit conditions in the ECCU, and on the recommendation of the Governor, the Monetary Council agreed to maintain the Minimum Savings Rate at 2.0 per cent; and maintain the discount rate at 3.0 per cent for short-term credit and 4.5 per cent for long-term credit.