budget statement 2012.indd - Grenada Customs & Excise Division

2.5 ECCU Eight-Point Stabilisation and Growth Programme
The details of this Programme were shared in my 2010 Budget
presentation. Its key objective is to maintain economic and financial
stability in the midst of the recession while preparing for the period
of transformation from 2015 to 2020.
All member countries of the Currency Union are expected to continue
with their fiscal consolidation efforts between 2012 and 2014 and
position themselves for the period of transformation thereafter.
2.6 The British American Insurance and CLICO Situation
Mr. Speaker, our Government is keenly aware of the hardship that
policyholders of BAICO and CLICO are experiencing. From the
outset, we have asserted that this is a regional problem that requires
a regional solution. Grenada continues to play a key role in this
regional solution.
We are making progress on the recapitalisation and sale of BAICO’s
traditional business which includes:
• Universal Life
• Whole Life
• Endowment
• Term
• Group Pensions
Bids have been received from potential buyers and are now being
assessed. We anticipate that the sale which requires Court and regulatory
approvals will be finalized in the third quarter of this year.
This sale will benefit 2 out of every 3 of BAICO’s policyholders. In
the case of Grenada, 4,725 traditional policyholders will have their
policies fully secured.
The sale of the traditional portfolio will also benefit non-traditional
policyholders since these policyholders will receive a greater share of
the BAICO estate in its final distribution.
2012 Budget Statement Page 7