Sep 2004 Financial News

RBTT brings together Caribbean Financial Leaders in Miami

Sep 29, 2004

RBTT Merchant Bank Limited recently hosted a conference in Miami entitled “INVESTORS’ FORUM 2004: Caribbean Capital Markets – The Way Forward”, which was attended by more than 60 financial and capital investment leaders from the Caribbean and Central American region.

“The RBTT Merchant Bank continues to pave the way forward for regional development,” said RBTT Group Chief Executive Officer, Jerome Sooklal who delivered his first public address since joining RBTT earlier in September.

In addition to capital market development in the region, the two-day conference explored topics such as the creation of a regional stock exchange, a regional credit-rating agency, the development of regional investment funds, and the integration of the English- and Spanish-speaking Caribbean as well as Central America to cope with the devastating economic effects of natural disasters.

Sir K. Dwight Venner, Governor of the Eastern Caribbean Central Bank, who was the keynote speaker for the official opening of the forum, said: “Self-contained financial systems are not sustainable at the level of small sovereign states.” Making a case for the creation of a unified market and regional stock exchange, he added, “The small size of national financial systems in the Caribbean leads to higher financial systems costs, limited scope for risk diversification, limited liquidity in capital markets and limited access to capital services and sophisticated risk management products.”

Financial Integration of Caribbean Markets Key to “Mitigating Shock from Natural Catastrophes,” Financial Executives Say
Hurricane Ivan’s devastating blow to Grenada and the heavy death toll in Haiti from Hurricane Jeanne also make a poignant case for the need to integrate financial markets across the Caribbean islands.

“Losses caused by natural disasters are difficult for any economy to absorb, but they can be utterly devastating for developing countries,” said Trudy Teelucksingh-Ablack, Manager, Research & Market Intelligence, RBTT Merchant Bank Limited.

Forum panelist, Dr. Terrence Farrell, group executive director for Guardian Holdings Limited suggested the need for new securities to finance the Caribbean’s tourism industry with the development of a Caribbean Resort Development Bank. This would help investors finance resort properties in different geographic locations. “Risks would be spread geographically over several properties in the event that cash flows are interrupted by an event like a hurricane,” said Farrell.

Mark Singh, Managing Director of RBTT Merchant Bank Limited, stated the conference uniquely focused on the practical, day-to-day issues affecting investors.

“As the largest investment bank in the region, we see it as our responsibility to bring together the people responsible for the growth and development of the Capital Markets in the Caribbean,” he said. “We wanted to spend some time with our investor and client base from both the Caribbean and Central America and to explore the rising challenges in portfolio management and understand, from their perspective, issues that concern them.”

Source: RBTT