Central Bank Of Barbados Announces Liberalised Equity Rules

by Phillip Morton, Investors Offshore.com

20 January 2004

The Central Bank of Barbados announced last week that as of January 15 2004, investments in certain corporate securities will no longer have to be referred to the bank, in line with a general process of investment liberalization taking place across the Caricom region.

In a statement, the Bank explained:

"Effective January 15, 2004, all investments in corporate securities in the form of equities cross-listed and cross-traded on the stock exchanges in CARICOM may, without limit, be approved by the Barbados Stock Exchange without reference to the Central Bank of Barbados. However, this authority does not include any government securities cross-listed and cross-traded on these stock exchanges."

"Also effective January 15, 2004, commercial banks in Barbados may, without the prior approval of the Central Bank, approve applications to transfer funds from Barbados to CARICOM countries in respect of the following:

1. Prepayment for imports into Barbados from CARICOM countries; and

2. Management services rendered to residents of Barbados by non-residents from CARICOM countries.

"Transactions must be supported by adequate documentation, authenticating payment. The Central Bank reserves the right to call for and/or inspect any such support documentation from time to time."

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