Central Bank Governor Ewart Williams had on Friday put Clico’s liability at least $10 billion.
A CL source lamented that the Central Bank had first sought collateral from CL before providing funding. “Had the CBTT worked with Clico in a collaborative mode as global regulators are doing, CBTT could have achieved the same objectives without causing unnecessary harm and duress to the public and without creating potential country risk.”
He said CBTT had been unusually harsh towards Clico by dramatically altering their approach to regulation without giving any time for transition.
Saying Clico’s investments had always been done to benefit policy-holders, he said the company’s investment strategy has always been consistent from inception, and that any suggestion of intention wrongdoing was simply untrue.
“Clico’s assets, Methanol Holdings and Republic Bank Limited, have performed well and the benefits have been passed on to policyholders over the years,” the source said.
The source also alleged that the Central Bank’s media conference last Friday had fuelled unnecessary panic over Clico. “CBTT’s role should be concern and reassurance for policy holders rather than recrimination.”
He said the Central Bank should instead have got on with Clico’s business and so allow policyholders to regain confidence in the company under its new leadership. “The liquidity situation is temporary (and arose) because of the high number of surrenders, and CBTT should have spent more time educating the public on this issue rather than further eroding their confidence.”