Prime Minister Gaston Browne has renewed pressure on the directors and shareholders of Eastern Caribbean Amalgamated Bank (ECAB) to advance a long-standing government plan to convert preference shares into ordinary shares, a move he says would open the door for broader local ownership.
Browne said the conversion would allow the government to divest those shares to Antiguans and Barbudans, expanding access to equity ownership in a major financial institution and creating additional wealth-building opportunities for citizens.
“And I want to make a plea to the directors and shareholders of ECAB. You have been frustrating this policy initiative of our government in which we are seeking to convert the preference shares into ordinary shares so that we can in turn divest them to Antiguans and Barbudans,” Browne said.
He said the objective is to broaden local participation in key enterprises and ensure that more citizens can benefit directly from ownership stakes in the economy.
The prime minister indicated that the initiative has been under discussion for some time but has not progressed due to resistance from the bank’s leadership and shareholders. He said continued engagement will be necessary to move the process forward and achieve the policy goal of widening share ownership.
Browne has previously argued that expanding local equity participation in major institutions is central to strengthening economic inclusion and building long-term national wealth.
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The likely problem here is when the GOAB preference shares are converted to common shares, this will shrink the percentage common shares held by the other shareholders which, if correct, is UNFAIR to them and not likely what was agreed when ECAB was created to rescue Bank of Antigua depositors. The shareholders came in and put their money where their mouth is in an effort to prevent a bank of Antigua collapse and now they are being asked to take less shares. If this is the correct scenario then the shareholders’ and directors’ reluctance is understandable. They were there for Antigua when Bank of Antigua was in trouble and should be able to maintain their percentage shares and their dividends.
Gaston if you are serious. You have alot of Donald Trump traits. Pull a Donald Trump on then.
You have leverage to get them to cooperate. You have been saying the same thing for a long time.
Soon I’ll believe you are just playing the public to distract them from your problems
Sounds like the government needs money……
Gaston please don’t go reck the bank too! Everything you destroy, please don’t continue, desist.
Should really have attended this meeting last evening. There is really a need for a meeting to properly discuss this issue. If I were the chairman of ECAB board, I would set up a committee, to meet with government officials including the PM, to try and iron out this matter. My understanding of why preference shares were originally given was to try to limit the votes A&B government would have. The PM is stating here this move is not about the government trying to control the bank but to empower its citizens. Based on the actions the government took which helped ECAB re the Scotia Bank acquisition, ECAB needs to remember its debt to government. Based on how long this matter is taking, government should have settled this matter before the Scotia acquisition.
I have an account with this Bank,in ANtigua. If they bow and or bend to this person.I would closed my account like yesterday.By the way,I have dollars,not pennies in my account.
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Be careful. The IRS officials are imbedded with the CIA as they move around the Caribbean looking for money laundering and tax evasion
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