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Contact:
Claudia Monlouis
Tuesday, November 16, 2004 - Prime Minister and Minster for Finance,
International Financial Services, Economic Affairs and Information, Honourable
Dr. Kenny Anthony has expressed concern about the poor servicing of debt by some
sections of borrowers, and is to discuss the matter with the local Bankers
Association at their upcoming quarterly meeting.
Speaking at the 31st Annual General Meeting of the Caribbean Association of
Indigenous Banks on Monday, November 15, at the Sandals Grande St. Lucian Beach
Resort, Dr. Anthony said, “We are currently following up on the issue of
systemic delays in the realization of residential property collateral provided
by chronically delinquent borrowers, who are able but are unwilling to meet
their debt servicing obligations”.
He further reminded the bankers that, financial institutions provided the
monetary means to the overall upliftment of the quality of life of persons, and
stressed that such institutions had the advantage over the average borrower and
must therefore be held to the highest level of performance.
“In our society, the two parties are of unequal strength. The average borrower
is normally in a disadvantageous position between himself and his bank, both in
terms of knowledge, sophistication and the leverage that he can exercise. The
lender who is in a more advantageous position should try as much as possible to
inform the borrower of his rights, obligations and the implications of the
failure to comply with the terms of the credit”, Dr. Anthony said.
While highlighting some of the significant contributions that the banking system
has been making in the region, Dr. Anthony acknowledged that government viewed
the banking sector as an integral partner in the development effort of the
region.
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