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Scotiabank says its operations in Belize has little value and profit

Scotiabank’s sale to Lord Ashcroft’s Caribbean Investment Holdings Limited (CIHL) is a go.  As we reported yesterday Cabinet indicated that the sale had been approved by the Central Bank of Belize during a meeting on November 18.  According to the Central Bank of Belize the approval is for the sale of one hundred percent of the common shares held by Scotia Caribbean Holdings Limited in Scotiabank Belize Limited.  Guided by the Domestic Banks and Financial Institutions Act the Central Bank of Belize’s Board was satisified that the Belize Bank would uphold the primary objectives of the Act.  Those objectives include the promotion of safety and soundness in the financial system in Belize; the promotion of prudent and fair banking and financial practices. According to a release from the Central Bank the two parties are now bound by a Transition Services Agreement.  The transition will see Scotiabank Belize Limited operate under the name, Belize Bank Corporation Limited for an interim period of twelve to eighteen months.  Contrary to public perception in some corners, the Central Bank of Belize noted that the decision to approve the sale was not influenced by any conditions specific to Belize nor was it prompted by any action on the part of the Regulator. The release notes, quote, “rather, the move represents Bank of Nova Scotia’s (Corporate) strategy of exiting what it considers to be non-core operations. This strategy extends to reengineering its operations in the various Latin American and Caribbean territories.”  End of quote.  The Central Bank of Belize stated that they conducted a comprehensive assessment of the proposed application, inclusive of the benefits and potential risks and vulnerabilities, to ensure that it will not be detrimental to the interest of depositors and customers, and the stability of the financial system. Love News is following this story on the angle of the employees’ future at the institution and the exit packages.