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ANGUILLA--At a ceremony on Friday, July 24, the chairmanship of the Eastern Caribbean Central Bank (ECCB) was handed over from Ralph Gonsalves Prime Minister of St. Vincent and the Grenadines to Anguilla’s Chief Minister Victor Banks. Members of the Monetary Council from the eight countries represented were preceded by the country’s flag held by members of the Pathfinders as they walked into the ceremony.

Governor of the ECCB Sir Dwight Venner welcomed those present to the 82nd meeting noting that the ECCB started in 1983 and since that time has maintained a stable Eastern Caribbean currency and low inflation. He said that member countries are very vulnerable and all are affected by the global economy. He said he has every confidence for a new and exciting era in the region’s history.

Outgoing chairman Gonsalves thanked members of the Monetary Council for their support. He said they have faced some real difficulties in the past year but the Council has remained steadfast aiming to promote monetary stability and economic development for the territories. Areas that are still problems he noted include financial stability, fiscal and debt sustainability, growth and competitiveness. He said the financial sector is stable but fragile.

He said that banks have to be assessed regularly for quality reviews, diagnosis and stress tests, portfolio reviews and asset reviews. A good legal and regulatory framework is needed and the Council has approved regulatory reforms that have been passed by most countries. All of the challenges he noted present a large chasm and large strategic jumps are necessary to address them. In closing he pledged his support to Banks and to the people of the ECCB.

Victor Banks said it is a critical time for the ECCB Monetary Council and there are many challenges ahead, especially noting the stabilisation and recovery of the banking sector. He referred to the two indigenous banks in Anguilla, the National Bank of Anguilla and the Caribbean Commercial Bank, that are currently under conservatorship of the ECCB as well as a bank in Antigua and one in Montserrat. He stressed that the Monetary Council needs to accelerate the recovery of these banks and a resolution must be forthcoming in the interest of all depositors. He said this is a priority for the Monetary Council.

Banks commended Gonsalves for his decisive leadership. He said that as incoming chairman he believes the development of the financial sector is critical. He agreed with Gonsalves that areas that need attention are financial stability, fiscal and debt sustainability, growth and competitiveness. He said the Council would continue to support and collaborate with the Organisation of Eastern Caribbean States and he is confident that with technical support the challenges will be resolved. He expressed thanks to the International Monetary Fund, the World Bank, the Caribbean Development Bank, the UK Government and the Canadian Government, for their assistance.

“I now accept the chairmanship of the ECCB Monetary Council,” he announced noting the challenging times and difficult choices ahead for all nations. He said he looks forward to the support of the members of the Council and the ECCB staff for the advancement of all the people in the region.

In his closing remarks Venner said that there were two good speeches and they must be interpreted and looked at for reality. He said there is a need to look at how viable the banks are in small communities and can they adequately protect their depositors.

Countries in the Monetary Council are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. Ministers of Finance from these nations form the Monetary Council. Also in attendance was the Governor Christina Scott, Deputy Governor Stanley Reid, Leader of the Opposition Palmavon Webster, Attorney General Rupert Jones, Speaker of the House Leroy Rogers and elected members of the House. Marcel Gumbs, Prime Minister of St. Maarten was in attendance and past chief minister of Anguilla Hubert Hughes along with other past government members and officials.