GRENADA'S BANKING SYSTEM IN GOOD SHAPE

St. George, February 18, 2008 -- Government's number one concern is to protect depositors who have been customers of Capital Bank -- at least, so says Timothy Antoine, Permanent Secretary in the Ministry of Finance.

On Monday afternoon, Antoine sought to assure depositors to the ill-fated Capital Bank that Grenada's banking system is in good shape  despite last week's announcement that the bank had gone into receivership.  His premise was based on the fact that there are over two billion dollars in deposits in Grenadian banks.

Antoine told the media that the decision to call in a Receiver was due to the bank's failure to agree to an independent assessment, claiming that it was in compliance with the regulations.

David Holukoff, Managing Director of Kroll, Inc. who has been appointed as Receiver is to report to government within ten days regarding the bank's state of finances.  Government will then have 60 days to decide whether to restructure Capital Bank or wrap up operations.  

Meanwhile, Holukoff has also urged customers who owe the bank to continue repaying their loans since this would help to assure the survival of the bank.

Click here to listen to Monday's media conference. (00Hrs:59Min:56Sec)