General Manager of the St. Lucia Cooperative Credit Union League, Shayne Felicien, stated that while there is naturally some apprehension surrounding any new legislation, the credit union movement sees the Insolvency Act as an important tool for assisting members facing financial difficulties.
“The credit unions are an integral part of our society and actually are the ones who help build the smaller members of society into having an equity and a stake in society. So, the introduction of the Insolvency Act we see as will be beneficial for helping not only people who are facing slight and minor insolvency or debt issues, but we are there as a credit union sector to work with them. And so we applaud the government, of course, passing the Act, and even more important, passing the regulations to make sure that the Act is effected.”
Felicien noted that the regulations provide the practical guidance needed to operationalize the legislation. He added that the strong turnout from credit unions demonstrated the sector’s commitment to understanding the law and helping members benefit from it.
President of the Saint Lucia Bankers Association and Country Manager for Republic Bank EC Limited, Ron Leon, described the consultation as productive and beneficial for both consumers and the financial institutions.
“I think the insolvency legislation provides a lot of opportunities for persons who have fallen into hard times to have a supervisor, a trustee, somebody who can understand their financial situation and actually represent them to that financial institution and actually represent them to that financial institution and say, “These are the opportunities that we have,” after having consulted that person, so that they could get to a better position.”
He explained that the legislation creates a structured pathway for individuals unable to meet their debt obligations to work toward financial recovery through supervised arrangements. He however, indicated that financial institutions also raised recommendations aimed at enhancing access to credit across the country.
The Supervisor of Bankruptcy and Insolvency, Nathalie Dusauzay, said the recently approved regulations now allow the Insolvency Act to be fully administered and implemented.
“It was important for us to have this session with the financial institution, which included the banking sector, the credit union sector, money services businesses, as well as credit institutions that fall under the Banking Act. And this session was important for us to understand how can the secured creditor, such as financial institutions, can work with a debtor in terms of ensuring that one can be rehabilitated under the legislation.”
Director of the NCPC, Lisa Florent-Montoute, said this consultation represents another significant milestone in the implementation of the insolvency framework.
“The NCPC is very excited to have worked with the Bankers Association and to have had this meeting today in ensuring that they are well-informed of what’s contained in the Act, as well as the regulations.”
Legal Consultant, Bota McNamara, was the lead presenter at the consultation, which was held at the Bank of Saint Lucia Conference Room in Castries.