The Republican Bank of Trinidad and Tobago has just disbursed US $ 122 million for the acquisition of operations from Scotiabank (Canadian financial institution). The Republic Bank is committed to preserving its 6,000 jobs.
Scotiabank, established in 7 Caribbean countries since 1889, is changing its international policy. The more lucrative markets of Peru, Mexico, Chile and Colombia now account for a quarter of the Canadian institution’s revenues.
Scotiabank has therefore decided to sell its operations in St. Lucia, Dominica, Anguilla, St. Kitts and Nevis, Grenada, St. Vincent, the Grenadines and St. Maarten.
The Central Bank of the Eastern Caribbean has validated the transaction for its member countries. The monetary authority based in Curaçao has given the green light for the transfer of assets to St. Maarten, on behalf of the Trinidadian bank.
Guyana, Antigua and Barbuda: Canceled transaction
On the other hand, the sale of Scotiabank’s operations in Guyana and Antigua and Barbuda did not succeed as planned. The Central Bank of Guyana has indeed refused to validate the case, on the grounds that its Trinidadian competitor will hold the monopoly in the country. The transaction has been cancelled.
The government of Antigua and Barbuda meanwhile, suspended the exchange. Prime Minister Gaston Browne wants to create a partnership between his government and local banks to buy back Scotiabank’s operations, which have not yet accepted the proposal.
As a result, the Republic Bank of Trinidad and Tobago no longer seems to be interested in the operation in Antigua and Barbuda, but has committed to retain the 6,000 jobs involved in this acquisition, with wages maintained. This establishment also carries out transactions in Cuba, Suriname, Barbados and Ghana (in West Africa).
The assets of Republic Financial Holdings Limited, (the parent company of the Republican Bank of Trinidad and Tobago), are estimated at US $ 10.5 billion.