Credit Unions rattled by Throne Speech

The Credit Union sector which, according to a 2017 Eastern Caribbean Central Bank Financial Stability Report, controls some 48% of total loans for the year, was distraught by this week’s Throne Speech. Well-placed sources told the STAR the governor general’s announcement that the government intends to pass the OECS Cooperative Harmonized Bill, came as a total shock to the movement because, since 2017, the sector and the Financial Services Regulatory Authority have been at a deadlock regarding certain provisions of the Bill. Consequently, even the legislative drafting consultant, in a memo of 31 March, 2017, admitted consensus was required on many clauses and reiterated that there were still many unresolved issues.

Our sources are of the view that the current Board of Directors of the Credit Union League and the FSRA have teamed up to convince the government that the Bill, as drafted, has the support of the credit unions, when the opposite is true.

The sector has made it known that the Bill will result in forced closures of several of the smaller credit unions in Saint Lucia that will be unable to meet certain thresholds. A worrying aspect of the Bill is that it will give the FSRA legal authority to close or merge small credit unions. Our sources say there is a lot going on with the credit union movement in the OECS that needs to be publicized.

Find out in our next issue what the STAR has uncovered!