ECAMC Achieves First Sales and is Poised to Expand its Scope

Diaspora Investors Breathe New Life into Properties in Dominica and St. Kitts

The Eastern Caribbean Asset Management Corporation (ECAMC), mandated by the eight Participating Governments of the Eastern Caribbean Currency Union (ECCU) with acquiring and managing non- performing assets in support of financial stability across the region, is pleased to announce its first successful collateral sales in the region, signaling a positive step in the attainment of its mandate.

The sales, finalized in June and July 2024, mark a pivotal moment for the Corporation as it continues to balance financial recovery with community development. Together, the two sales in Dominica and St. Kitts generated a total of EC$1.25 million. The first sale, an apartment building in Calibishie, Dominica (pictured above), had long been in a state of disrepair. Purchased by a Dominican national living in the United States, this previously abandoned asset was sold for its market value and is now undergoing a complete renovation, bringing fresh investment and economic activity into the area.

In July, a second sale was completed in St. Kitts, involving an apartment building that had suffered from deferred maintenance since 2012. Also sold at market value, the property was purchased by a Kittitian national living in the United States. This sale not only restores the value of a once-dormant asset but also reflects the growing trend of nationals abroad reinvesting in their homeland.

ECAMC's CEO, Aiandra Knights, emphasized that these sales go beyond financial recovery. "These transactions represent more than just a resolution of non-performing loans; they illustrate the positive impact that strategic asset management can have on communities and the respective countries. We are especially encouraged by the fact that both of the assets were sold to members of the diaspora, reinvigorating local economies and adding real value to the built environment in Dominica and St. Kitts."

Delivering on ECAMC's Mandate with a Balanced Approach

As a public asset management company established by the Eastern Caribbean Asset Management Corporation Act of 2015, ECAMC's primary mandate is to manage non- performing assets while ensuring the financial sector remains stable and secure. However, Knights pointed out that ECAMC's work is about optimizing value. "ECAMC can proudly point to its active efforts in working with debtors who have the financial capacity to restructure their loans. In fact, 19% of our acquired portfolio has been successfully restructured to date, showcasing our commitment to finding sustainable solutions for all stakeholders involved."

This balanced approach underscores ECAMC's mission to maintain financial stability across the ECCU while working closely with debtors who have the potential to recover financially. "We are not simply about disposing of distressed assets," Knights added. "We are about providing meaningful opportunities for recovery and collaboration."

Amendment Broadens ECAMC's Asset Acquisition Horizon

In addition to the recent sales, ECAMC is poised for growth following an important amendment to the ECAMC Agreement, which now expands the range of financial institutions from which the Corporation can acquire assets. This expansion now includes development banks across the region, opening up new avenues for ECAMC to fulfill its mandate.

While discussions with certain existing financial institutions have progressed at a slower pace, this broadened scope offers new opportunities for asset acquisitions. "We welcome the expansion of our market with optimism but also with caution, as we continue to seek sustainable solutions for funding," Knights remarked. "The recent sales, both of which were finalized ahead of the projected timelines, give us confidence in the positive trajectory we are on as we look ahead."

With a clear focus on delivering value to both the financial sector and local economies, ECAMC is well-positioned to move the needle forward in achieving its mandate and contributing to the overall stability of the ECCU.

ABOUT ECAMC:

The Eastern Caribbean Asset Management Corporation (ECAMC) was established under Article 3 of the Eastern Caribbean Asset Management Corporation Agreement (the "ECAMC Agreement"). Its purpose, as outlined in Article 6, is to engage in asset management activities, including the acquisition, management, and disposal of assets or liabilities of approved financial institutions in an expeditious manner. Additionally, the ECAMC is empowered to act as the receiver of a financial institution when appointed by the Eastern Caribbean Central Bank (ECCB) under the Eastern Caribbean Central Bank Agreement or the Banking Act. The ECAMC Agreement is annexed as a schedule to the Eastern Caribbean Asset Management Corporation Act, which was legislated across all eight territories of the Eastern Caribbean Currency Union (ECCU) between November 2015 and April 2017. This legislative framework provides ECAMC with a clear mandate to support financial stability within the region. The establishment of ECAMC in each ECCU jurisdiction highlights the regional commitment to managing distressed financial assets effectively while maintaining confidence in the financial sector. Learn more at www.ec-amc.com/

Public link

Please use the above public link if you want to share this noodl on another website.