Quote:
Opposition Leader Hon. Mark Brantley says the government’s reliance on the St. Kitts-Nevis-Anguilla National Bank (SKNANB), and others, to finance their borrowing is exposing the banks to great risk.
“The IMF Report also highlighted that the surging debt burdens made it more difficult for our government to access foreign loans and as a result, government has turned to the domestic banks and other financial institutions, or the issuance of government debt instruments to finance their borrowing. As a result the IMF tells us that ‘gross public sector exposure is high and concentrated in local banks’. Of these local banks, the St. Kitts-Nevis-Anguilla National Bank is the bank of choice for both the federal government and the NIA for much of its domestic debt,” he said.
Brantley indicated that this could spell disaster for the SKNANB and other financial institutions should the government not be able to meet its financial obligations to the lending institutions and other creditors.
“This creates a further dimension to the debt crisis in that any risk of default by the government directly impacts the largest financial institution in the country. When we consider that the National Bank is also the primary depository for the Social Security Funds, the potential for difficulty is exacerbated. The domino effect of any such crisis throughout the financial sector in St. Kitts-Nevis is perhaps too frightening to contemplate,” he asserted.
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Source:
http://www.thestkittsnevisobserver.c...tley-debt.html
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Anybody know how this bank is doing?
If it folded then we can kiss both our money and epassporte good-bye.