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Financial News

Oct 2018 Financial News

FirstCaribbean International Bank Limited - Notice of Material Change

Oct 19, 2018

On October 14, 2018 the Government of Barbados (“GoB”) announced that its proposal to exchange Barbados-dollar denominated debt for new instruments with different repayment terms was accepted by its domestic creditors.

FirstCaribbean International Bank Limited (the “Bank”) holds approximately US$445 million in GoB Barbados-dollar denominated debt instruments that will be exchanged for new Barbados-dollar denominated debt instruments with different repayment terms.  The Bank’s Q3/18 expected credit losses of US$46 million for these exposures re?ected our expectation for a government debt restructuring based on information available at the time.

The Bank also holds approximately US$30 million in US-dollar denominated GoB debt instruments for which a speci?c restructuring plan has not yet been announced, and approximately US$20 million in GoB US-dollar denominated debt instruments that is not expected to be included in the GoB’s comprehensive debt restructuring plan.

We are currently revising our estimate of the expected credit losses as a result of the exchange offer that was accepted by the domestic creditors, and anticipate that incremental expected credit losses will be recognized in our Q4/18 results set to be published on November 29, 2018.

Our Tier 1 and Total Capital ratios will remain strong and in excess of applicable regulatory requirements after recognizing the incremental expected losses noted above.
 

Source:
The Trinidad and Tobago Stock Exchange Limited
 19 October, 2018