CARICOM Chairman leads discussion on correspondent banking

Thursday, 24th October 2019

Prime Minister of Saint Lucia and Chairman of the Caribbean Community (CARICOM), Allen Chastanet on Wednesday led the discussion off by focusing on issues relating to the withdrawal of correspondent banking relations in the region, and the economic and security implications this has on the Caribbean region. The Chastanet cautioned that the withdrawal of correspondent banking relations has the unintended consequence of excluding the region from the international trade and financial system. Chastanet was the featured speaker at The Washington Times on Wednesday. The Washington Times is a daily newspaper published in Washington, D.C., U.S.A.. The Prime Minister also spoke to the issue of blacklisting by the European Union, calling this a particularly damaging trend that can only serve to damage the region’s reputation and adversely impact its competitiveness. He pointedly noted that Caribbean countries have made and often exceeded various compliance rules and regulations, while other larger countries have lagged behind.

The Prime Minister called on the Organisation for Economic Co-operation and Development to change its policies as it pertains to the classification of countries based solely on the GDP per capita index, and to include a ‘vulnerability index’ which more accurately reflects the economic realities of small island developing states (SIDS). He called for a dedicated fund to address resilience efforts by SIDS and the need for a review on how debt is classified.