ST GEORGE’S, Grenada, Feb. 3rd (GIS) - Government and Grenadians are keenly following the takeover of one of the Caribbean leading investment companies, CL Financial. The Grenada Government, through the Ministry of Finance, has issued its first statement on the takeover by the Trinidad and Tobago administration of the operations the CL Financial Group. The CL Group has shares in Republic Bank, which operates in Grenada, British American Insurance, Clico and the Grenada Broadcasting Network, GBN. In announcing the takeover of the CL Group and its related businesses last week, Governor of the Central Bank of Trinidad and Tobago, Mr. Ewart Williams, said the company was facing liquidity challenges and the government wanted to protect the funds of people who had deposits with CL. He said the aim was also to reinforce confidence in the financial sector as a whole. In a statement on Monday, the Ministry of Finance in St. George's said it was aware of recent developments with the CL Financial Group. It says it's assessing the impact and implications of the developments on all CL affiliates, including British American Insurance companies and Republic Bank. According to the Ministry's statement, Government's primary concern is the impact of the developments on policyholders and depositors in Grenada. It says the Ministry, headed by the Hon. Nazim Burke, is in contact with representatives of the various CL-related companies. The Ministry adds that it's also in constant touch with the Eastern Caribbean Central Bank (ECCB), which is communicating with the Central Bank of Trinidad & Tobago. The Finance Ministry notes that the developments involving CL affect not just Grenada, but all member states of the Organisation of Eastern Caribbean States (OECS). Because of this, the Ministry of Finance says a coordinated regional response is being considered. As part of the response, a meeting of the OECS Monetary Council will soon be convened via videoconference. Details on the OECS response will be given following that meeting. Meanwhile, local economist Aaron Moses sees the situation that has befallen CLICO and the CL Financial Group as part of the harsh reality of the economic downturn affecting the Caribbean region. "CL Financial Holding which is one of the largest conglomerates in the Caribbean, a very powerful company has found itself in financial difficulties. As you may be aware CL Financial is heavily involve in banking and finance that the company owns such as CLICO, British American among others". Mr. Moses, who is also an advisor to Prime Minister Tillman Thomas, noted that the Government of Trinidad and Tobago moved swiftly to address the crisis with the CLICO Group. He says it could mean several things. "A company like CL Financial has very strong assets, not liquid assets. The central banks and the government of Trinidad and Tobago have agreed to provide that but in doing so obviously the company has to restructure,” Moses said. The Trinidad situation, says Mr. Moses, could have implications for Grenadians. "In terms of the Grenadian depositors, am aware that a number of persons has deposited in the CMMB as well as both insurance companies. I think its reasonable to concerned but I think based on the intervention of the central bank, I think it is reasonable to say that so far depositors money are safe". FROM: Government Information Service (GIS) INSIDE GRENADA NEWS