( Real News Antigua ) Former university lecturer Dr. George Daniel says that Prime
Minister Gaston Browne’s recent comments about the Global Bank
of Commerce (GBC) pose a greater risk of destabilizing the bank
than actions taken by depositor Jack Stroll.
Last Thursday, February 22, Browne said the businessman’s current
lawsuits could cause other GBC customers to lose some of their
savings or investments in the financial institution.
Reportedly, for about five years now, Stroll has been trying to
withdraw his money from the bank, and the matter finally led to him
taking legal action.
In doing so, the businessman failed to honour an agreement for
“secrecy,” Browne alleged during last week’s sitting of the Lower
House, and put GBC’s viability at risk.
However, Dr. Daniel says the prime minister’s previous statement –
that the Government was removing its holdings with the bank in
order to reduce its risk – actually served to place the bank in
jeopardy.
Browne needs to think before he opens his mouth, Dr. Daniel
cautions, adding that what Stroll is doing now – withdrawing his
money to reduce his risk –
is no different from what the Government says it will do.
In fact, according to the former lecturer, the prime minister’s
statement would sink any bank.
If the Government is not honouring its commitment with Treasury
bonds, Dr. Daniel says, then how does it plan to raise the $600
million to make up the budget shortfall.
The 2024 budget is $1.8 billion; however, the Government’s revenue
amounts to about $1.2 billion, which leaves the deficit to be raised
through Treasury instruments.
But given the current situation, Dr. Daniel wonders who is going to
take up any Treasury bills issued on the Securities Exchange by the
Browne Administration, when it is not honouring its obligations.
Meanwhile, Dr. Daniel says, yet again, that the Government of
Antigua and Barbuda has a finance-management problem, as it is
not prudent with its spending nor efficient with its tax collection.
He underscores that the Gaston Browne Administration is broke
because of bad management of the economy.
