Former Trade Minister, Vasant Bharath says Scotiabank’s decision to sell its Eastern Caribbean operations to Republic Bank Limited seems to simply be a matter of reducing risk.
Speaking in a recent television interview, he explained that the bank was seemingly attempting to put resources to more profitable use.
Meanwhile, Republic Bank’s takeover of Scotiabank’s Eastern Caribbean operations may be in peril in at least one of the territories.
According to a letter sent to Scotiabanks’ General Manager in Antigua, that country’s Prime Minister Gaston Browne expressed concern that Scotiabank agreed to sell its operations without approaching the relevant regulatory bodies for approval.
He also expressed concern that no offer was made to Antiguan companies to purchase the institution’s operations before agreeing to sell it to a foreign entity.
Mr Bharath said there is a possibility that politics may play a part in how this unfolds.
Also weighing in on the matter was Rishi Maharaj, of Disclosure Today.
He told News Power Now that the concept of local ownership is important in a developing economy.
Mr Maharaj added that the entire transaction speaks volumes for the health of Trinidad and Tobago’s economy.