Central Banker Urges Business To Prepare For Caribbean Integration

by Amanda Banks, Tax-News.com, London

05 January 2004

Governor of the Central Bank of Barbados, Marion Williams, has urged the region’s businesses to formulate a common approach to doing business within the Caribbean Single Market area so as to benefit from greater economies of scale and compete effectively within an expanded and liberalised market place.

In a public lecture focusing on economic integration, Mrs Williams observed that “pressure on corporations to act in their own competitive interests has prompted moves towards greater integration at the business level, before many of these structures could be put in place.”

However, the Governor noted that the increase in cross-border commercial activity has highlighted areas where modifications are needed to bring about a common framework in this area. She also detailed how exchange control liberalisation measures by the Central Bank were facilitating the progress of more efficient regional integration.

“On the capital account, transactions in listed securities are virtually free of the need for Central Bank approval, and transactions in equities in unlisted companies up to $250,000 per transaction are possible without reference to the bank,” said Mrs Williams.

In addition, she said that the Central Bank is “fully supportive” towards the idea of creating a regional stock exchange and is committed to becoming a shareholder in the Caribbean Regional Credit Ratings which is to be launched imminently.

Nevertheless, Mrs Williams accepted that there is still much work to be done to harmonise the regulatory frameworks before the process can be completed.

"Among them are differing criteria for registration of companies, differing disclosure requirements, differing treatment and definitions triggering take-overs, different minimum capital requirements, different administration and accounting requirements, and different tax treatments among others,” explained the Governor.

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