Belize - Belize News - Channel5Belize.com - Great Belize Productions - Belize Breaking News
Home » Economy, Foreign Affairs, People & Places, Regional / International » New CARICOM Sec. Gen. Weighs In on De-Risking in the Region
May 11, 2021

New CARICOM Sec. Gen. Weighs In on De-Risking in the Region

Carla Barnett

Earlier in the newscast we told you about the pending appointment of Belize’s Doctor Carla Barnett to the post of Secretary General of CARICOM. During our zoom interview, Barnett also weighed in on the issue of de-risking which in recent years has placed serious pressure on region’s financial services. Due to the imposition of more stringent standards on the banking sector, there is a greater burden on financial institutions in smaller economies. They are faced with a shut off or restriction of services from the overseas financial sector, including correspondent banks. As Barnett shared, the Caribbean region’s economic growth and development been affected and de-risking remains a real and live issue for member states.

 

Dr. Carla Barnett, Secretary General Designate, CARICOM

“The same system you have to put in place in a large country that may cost ten million dollars to deal with billions of accounts is the same system we have to put in a small country where we are talking about much fewer people and fewer dollars. So, the de-risking issue for us is significant. It threatens our ability to engage in the global financial market because if you don’t have correspondent banking relations you can’t do business internationally and that can undermine the economics and trade. So, it is really very critical and one of the things that we do have to keep doing aside from doing our best to keep up with the evolving legal requirements is to continue to press the discussion about the impact on our economies and the fact that we are having to respond to five or six different kinds of regimes – rather than having one – the same way we have a WTO that deals with all the requirements for physical trade – maybe it is we can come up with one organization that deal with the requirements for financial transactions as it is there are several. There is the American requirement; the European requirement and within Europe you have two or three different kinds that are set up and so it becomes very complicated and very expensive for us. And we don’t want to be caught out, so to speak, and we don’t want to be where the weaknesses are but it does cost us much more on a per capita basis to put in the systems that the larger countries have to put in. So, that’s it, that’s the reality.”


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

Advertise Here

Comments are closed