PM Confirms Plans to Sell Caribbean Union Bank to Major Foreign Investor
Prime Minister Gaston Browne has confirmed that his government is in talks with a major foreign banking group to sell its majority stake in Caribbean Union Bank (CUB).
Browne made the announcement on Saturday during his weekly radio programme, The Browne and Browne Show, where he discussed the country’s economic performance and the government’s ongoing investment initiatives.
The Prime Minister said the government, which owns about 80 percent of CUB’s shares, is seeking a partner capable of recapitalizing and expanding the bank’s operations.
“We bought Caribbean Union Bank—80 percent of the shares—probably about six years ago,” Browne said.
“When it was held by private individuals, some of the most sophisticated persons in the society, it never turned one dollar in profit.
It made losses after losses. Again, we invested in it, and the bank is actually making profits, but it’s a relatively small bank. So we’re seeking to sell it.”
He added that the administration is negotiating with a foreign banking group that manages several billion dollars in assets.
“On the basis that this deal goes through, they will be in a position to recapitalize the bank and to probably put in at least one hundred million U.S. dollars in capital into it, which will then scale it up significantly,” Browne said.
The Prime Minister explained that the planned sale aligns with the government’s strategy to strengthen the local financial sector and modernize banking services through technological advancement.
“The banks have to lead that charge,” he said.
“People are doing seamless transactions now using their phones and transfers. If they don’t reform and put the necessary systems in place using cutting-edge technology, they may find themselves in trouble.”
Browne said the government’s goal is to position CUB as a modern, efficient, and well-capitalized institution that contributes to national development and greater access to financial services.
