By letter dated and delivered on Sunday, April 8, 2018, upon a resolution of its directors, the Bank voluntarily requested the Central Bank to appoint a Statutory Administrator and to seek relief from the Central Bank in the form an emergency infusion of funds with a view to enable an orderly liquidation process to protect and conserve assets of the Bank, and to manage cashflows in an orderly fashion in the best interest of depositors, cardholders and other creditors of the Bank so that depositors and creditors of the Bank could be kept whole while working through the short-term liquidity challenges the Bank faced.
From conversations held with members of the Central Bank, it became clear that the Central Bank︀ would not be making an immediate appointment as requested or responding to our letter with︁ the urgency that the situation demanded. Consequently, the Bank had to resort to self-help and︂ on April 10, 2018, pursuant to an expansion of the Bank’s Funds Availability Policy which︃ is referenced in its Depository Agreement General Terms and Conditions, the Bank gave notice to︄ account holders that it had taken a decision to temporarily suspend withdrawals from deposit accounts︅ so that it could better manage its liquidity position.
On April 12, 2018, representatives of︆ the Bank attended a meeting with members of the Central Bank where the Central Bank︇ gave no indication that it would appoint a Statutory Administrator but did indicate that it︈ would place the Bank under enhanced supervision and require additional reporting on a timely basis.︉ As a result the Bank, with a view to engage specialty assistance, appointed Quadrant Management,︊ Inc. (“Quadrant”) to act as its restructuring advisor. Quadrant is a US based︋ investment management firm with extensive experience in restructuring various types of companies.
The Bank has︌ kept the Central Bank fully informed of all measures it has taken and intends to︍ take to manage its short-term liquidity position and repay depositors.
As at April 9, 2018︎ the Bank still maintained more than 305,000 prepaid cards outstanding which made up approximately US$65️ million of the Bank’s total outstanding liabilities of US$163 million. On the 8th of April, 2018, the Bank made a decision, that until a statutory administrator was appointed, it would not suspend withdrawals by prepaid cardholders since these accounts consist of very small deposits which cardholders require for their basic needs such as food and housing. In pursuance of the Required Action, cardholders have been notified that the card accounts will be closed on June 30, 2018 and that funds must be withdrawn by then. The Bank expects that the Prepaid Card Liabilities will have been fully repaid by end of June 2018 from the︀ proceeds of monetized assets held by the Bank and through the release of collateral held︁ by Mastercard.
tely US$14 million with a Puerto Rican International Bank (“PR Banc”). PR Banc terminated its correspondent banking relationship with the Bank however immediately after being contacted︂ by the Central Bank of Belize, inexplicably has chosen to withhold payment of the said︃ US$14million to the Bank. The Bank has initiated legal process against PR Banc with a︄ view to recover the said sum forthwith and has also reached out to the regulatory︅ authorities in Puerto Rico and the Central Bank (which thus far has not be received)︆ for assistance in recovery of the said funds.
If funds from PR Banc are returned,︇ all depositors will have funds available up to US$100,000. This will result in all except︈ 125 accounts having access to 100% of their funds. Thus, within the next several weeks︉ the Bank will place in escrow Belize dollars to satisfy all the remaining claims if︊ so ordered.
From conversations held with members of the Central Bank, it became clear that the Central Bank︀ would not be making an immediate appointment as requested or responding to our letter with︁ the urgency that the situation demanded. Consequently, the Bank had to resort to self-help and︂ on April 10, 2018, pursuant to an expansion of the Bank’s Funds Availability Policy which︃ is referenced in its Depository Agreement General Terms and Conditions, the Bank gave notice to︄ account holders that it had taken a decision to temporarily suspend withdrawals from deposit accounts︅ so that it could better manage its liquidity position.
On April 12, 2018, representatives of︆ the Bank attended a meeting with members of the Central Bank where the Central Bank︇ gave no indication that it would appoint a Statutory Administrator but did indicate that it︈ would place the Bank under enhanced supervision and require additional reporting on a timely basis.︉ As a result the Bank, with a view to engage specialty assistance, appointed Quadrant Management,︊ Inc. (“Quadrant”) to act as its restructuring advisor. Quadrant is a US based︋ investment management firm with extensive experience in restructuring various types of companies.
The Bank has︌ kept the Central Bank fully informed of all measures it has taken and intends to︍ take to manage its short-term liquidity position and repay depositors.
As at April 9, 2018︎ the Bank still maintained more than 305,000 prepaid cards outstanding which made up approximately US$65️ million of the Bank’s total outstanding liabilities of US$163 million. On the 8th of April, 2018, the Bank made a decision, that until a statutory administrator was appointed, it would not suspend withdrawals by prepaid cardholders since these accounts consist of very small deposits which cardholders require for their basic needs such as food and housing. In pursuance of the Required Action, cardholders have been notified that the card accounts will be closed on June 30, 2018 and that funds must be withdrawn by then. The Bank expects that the Prepaid Card Liabilities will have been fully repaid by end of June 2018 from the︀ proceeds of monetized assets held by the Bank and through the release of collateral held︁ by Mastercard.
tely US$14 million with a Puerto Rican International Bank (“PR Banc”). PR Banc terminated its correspondent banking relationship with the Bank however immediately after being contacted︂ by the Central Bank of Belize, inexplicably has chosen to withhold payment of the said︃ US$14million to the Bank. The Bank has initiated legal process against PR Banc with a︄ view to recover the said sum forthwith and has also reached out to the regulatory︅ authorities in Puerto Rico and the Central Bank (which thus far has not be received)︆ for assistance in recovery of the said funds.
If funds from PR Banc are returned,︇ all depositors will have funds available up to US$100,000. This will result in all except︈ 125 accounts having access to 100% of their funds. Thus, within the next several weeks︉ the Bank will place in escrow Belize dollars to satisfy all the remaining claims if︊ so ordered.
