Posted on March 1-2023
ECAMC Acquires A Second Portfolio of Loans From National Bank of Dominica
January 27, 2023 – Antigua and Barbuda: The Eastern Caribbean Asset Management Corporation (“ECAMC”) has acquired a second portfolio of non-performing loans (“NPLs”) from National Bank of Dominica (“NBD”). The signing ceremony for the transaction was held in Dominica on October 28, 2022. ECAMC acquired the first portfolio of NPLs from NBD in June 2021. This second portfolio being acquired from NBD brings the ECAMC’s total principal outstanding on loans acquired across the region to approximately EC$26M. ”
The Chief Executive Officer of the ECAMC, Aiandra Knights, is pleased that the parties have been able to consummate a second transaction, she stated that “because participation of the Licensed Financial Institutions in transacting with the ECAMC to dispose of their toxic assets is voluntary, some banks in the Eastern Caribbean Currency Union (“ECCU”) region have for various reasons opted not to transact with the ECAMC. The Corporation is however pleased that some institutions like NBD have recognised and capitalised on the solution that the ECAMC represents vis a vis managing their NPL ratios.”
The Managing Director of NBD, Annette Severin, expressed satisfaction with the agreement reached by the parties saying, “This cooperation has provided the National Bank of Dominica Ltd., with the opportunity to improve its overall loan portfolio quality by disposing of non-performing loans. ECAMC has provided ECCU banks with an alternative for dealing with NPLs and this strategy has been successful for NBD.”
ECAMC and NBD have already commenced discussions in relation to a third portfolio of NPLs and hope to reach an agreement by July 2023 when the ECAMC’s prescribed timeframe for the acquisition of assets expires. ECAMC is also presently in discussions with at least five other Licensed Financial Institutions in the ECCU with a view to reaching acquisition agreements respectively therewith by July 2023.
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