Scotiabank Friday announced that the agreement for the sale of its banking operations in Guyana to the Trinidad-based First Citizens Bank Limited (First Citizens) has expired and as a result “the agreement has been terminated in accordance with its terms”.
In a brief statement, Scotiabank gave no details regarding the negotiations for the sale, noting in a brief statement that the bank “remains committed to providing the highest level of customer service and quality banking solutions to our customers in Guyana and across the Caribbean”.
In March last year, Scotiabank announced it had reached an agreement for the sale of its banking operations in Guyana to First Citizens adding that the agreement was subject to regulatory approval and customary closing conditions.
“This transaction supports Scotiabank’s strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the highest value for customers. Scotiabank’s current operations in Guyana encompass four branches and approximately 180 employees. Following closing, all employees will continue to support the business,” the bank said then.
But the move to sell Scotiabank seemed to have caught the Guyana government off-guard with the country’s Senior Minister with the responsibility for Finance, Dr. Ashni Singh, describing the announcement as premature.
“It has just been brought to my notice that a press release was issued just a few minutes ago announcing the sale of the operations of Scotiabank Guyana to a Regional Bank, a Trinidadian Bank in particular. I wish to say that the government of Guyana considers it extremely unfortunate,” said Singh, who explained that under Section 12 of Guyana’s Financial
Institutions act such a sale would require the approval of the Bank of Guyana.
“We consider it premature to announce a transaction of this nature particularly given that the regulatory process to consider. The request for any such transaction is yet to be initiated much less to be concluded,” he said then.
First Citizens has been described as one of the leading financial services groups in the English-speaking Caribbean, offering a full range of retail, corporate and investment banking services as well as wealth management, trustee and brokerage services to clients through its operations in Barbados, Costa Rica, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago.
The bank said then that the move towards acquiring Scotibank supporters its strategic growth across the region and leverages its strengths in innovation and excellence to the benefit of all stakeholders
Scotiabank has over the last few years been reducing its footprint in the Caribbean. In 2019, it sold its Eastern Caribbean assets to the Trinidad-based Republic Financial Holdings Ltd.
Source-CMC
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