ST. JOHN’S, Antigua, CMC – St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has warned policyholders against taking court action against British American Insurance Company (BAICO), assuring them that everything was being done to ensure they do not lose monies invested with the company.

“I see in Antigua that people are saying that they will go to the court, they will do this, they will do that; well I wish them well,” Gonsalves said Friday during a live video conference at the Eastern Caribbean Currency Union’s Monetary Council (ECCU).

“If they wish to intercede and muddy the waters, they can go but unless the governments do something as we are doing here, I don’t see how you are going to have your problem solved.

“You may have a lovely judgment in your hand, a lovely piece of paper and the lawyers would celebrate but of course the paper would not be able to pay for the fine wine which you have consumed until this matter has been sorted out in the most efficacious manner,” he added.

Gonsalves has lead responsibility for addressing the British American debacle within the Organisation of Eastern Caribbean States, (OECS).

The problem for British American is as a result of the financial situation facing its parent company, the Trinidad-based regional conglomerate CL Financial. The Trinidad and Tobago government has pumped billions of dollars into the cash strapped company as part of a rescue plan.

Earlier this week more than 200 policyholders of BAICO in Antigua and Barbuda established a pressure group to lead their bid to recover funds invested in the company.

The Supreme Court in the Bahamas recently placed BAICO under judicial management with the court affidavit showing that the company owes Antigua and Barbuda more money than any of its Eastern Caribbean neighbours.

It said that of the USS$91.65 million in unpaid claims in the Eastern Caribbean countries as of June 25, Antigua and Barbuda was owed US$32.54 million.

Unpaid claims in Grenada, St. Vincent, St. Kitts, Nevis, Dominica, Montserrat and Anguilla ranged from US$368,414 to US$14.18 million.

Prime Minister Gonsalves said there was also grave concern about the fate of mortgages issued by BAICO, but that the sub-regional governments were addressing that issue.

“And so as not to allow this crisis to spill over into the wider financial system we have sought to do some ring fencing by ourselves, making available some EC$2.2 million (US$814,800) from the second fiscal tranche where we have paid the first installment ….of the reinsurance monies for those particular properties so that the policies will remain alive.

“We got the entities to which the insurance monies had to be paid and they were paid. The month of October is the time when the second tranche is to be paid and money has been allocated from the second fiscal tranche here at the Central Bank for those purposes,” The Prime Minister said.