By Racquel Porter
A Financial Analyst is seeking to assure the public that there is no need to be concerned about the future of Jamaica's biggest Financial Group, National Commercial Bank and its customers.
The reassurance comes amid public discussion surrounding developments involving AIC Barbados and businessman Michael Lee-Chin, the principal shareholder of NCB Financial Group.
On Wednesday, news came that Bondholders of AIC Barbados agreed to temporarily pause enforcement action, after Mr Lee-Chin confirmed he is reviewing repayment options — including the possible sale of his shares in NCB Financial Group — to settle outstanding obligations.
Under the agreement, AIC is required to make payments totalling just over US$94 million by December 31, comprising approximately US$19 million in outstanding interest and US$75 million toward principal.
However, the Trustee says it has not yet received the required payments and has been advised by the Issuer that it intends to make the payments on or before January 26.
As detailsAs details of the matter circulate publicly, some members of the public took to social media expressing concern.
Questions raged from whether customers should be worried about their deposits, to suggestions that account holders withdraw their funds.
But Economic Consultant and Financial Analyst Janiel McEwan says those fears are misplaced.
Speaking with Radio Jamaica News last Wednesday, Mr McEwan described the situation as private debt restructuring playing out in the public domain, rather than a threat to the banking system.
He said the bank remains stable and continues to operate normally and that customers' deposits secure.
Mr Ewan stresses that Jamaica's banking sector is tightly regulated and that the NCB operates within strict prudential guidelines designed to protect depositors and maintain financial stability.
However, he acknowledges that the situation does present some uncertainty for shareholders of NCB Financial Group shareholders.
According to Mr McEwan, if Mr Lee-Chin does proceed with a sale, it could lead to more diversified ownership of NCB Financial Group.
He says this may result in improved corporate governance and reduced risk associated with one individual's private debt exposure.
He adds that such a development could also create opportunities for new strategic investors, including members of the Jamaican diaspora.
Looking ahead, Mr McEwan cautions that the developments could result in short-term volatility on the stock market, particularly for NCB Financial Group shares.
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