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Financial News

Sep 2009 Financial News

Guyana gets US$15m from Trinidad to pay Clico debts

Sep 23, 2009


Guyana has received US$15 million from a regional emergency fund to help prop up a failed insurance company.

President Bharrat Jagdeo said Monday that the money from the emergency fund managed by energy-rich Trinidad and Tobago will help pay the roughly 15,000 policyholders of Colonial Life Insurance Co, commonly known as Clico, in Guyana.

Jagdeo said the funds were recently transferred to the central bank in Guyana, where the failed insurance company's liabilities of more than US$60 million far exceed its assets.

Regulators ordered Clico to be liquidated after it was unable to pay claims following a January 30 bailout of its troubled parent company, CL Financial Ltd, by Trinidad's central bank.

Earlier this year, Trinidad earmarked US$50 million from the emergency fund, dubbed the CARICOM Petroleum Fund, to assist anxious policyholders of Clico across the region.

Representatives of CL Financial did not return calls seeking comment Monday.

Jamaica Gleaner
Wednesday September 23, 2009