Tuesday 12 November, 2019

Guyana Central Bank blocks sale of Scotiabank

The Central Bank of Guyana is not approving the sale of Scotia Bank to Republic Financial Holdings Limited.

Media reports out of Guyana said that this was confirmed to News-Talk Radio 103.1 FM/Demerara Waves Online News by Central Bank Governor, Dr. Gobin Ganga.

He said if Republic Bank was allowed to take over Scotiabank’s operations, it would have meant that Republic would have dominated the banking sector by more than 50 percent, resulting in a huge risk to Guyanese should something go wrong.

He said the decision to block the Scotia-Republic deal followed analyses done by the Central Bank and the Caribbean Competiton Commission. 

In assuring Guyanese that their money is safe with Scotia, Ganga expressed hope that the Canadian bank would not pick up and leave as it is quite profitable.

The Eastern Caribbean Central Bank recently approved the sale of Scotia in six countries: Anguilla, Dominica, Grenada, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. The bank noted that the Government of Antigua and Barbuda is still negotiating with Scotiabank to sell its assets to them.

Guyana and Antigua and Barbuda were the countries whose Governments voiced the most concern when the sale of Scotiabank in nine countries was announced last year.

 

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