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US law codifies ‘helpful’ guidelines on de-risking

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Prime Minister, Gaston Browne, as the lead on Financial Services in the quasi-Cabinet of CARICOM Heads of Government, has thanked the Chair of the Banking Committee of the US House of Representatives, Maxine Waters, for the inclusion in US law of helpful guidelines on de-risking.

For several years, regulatory directives to US global banks have resulted in the withdrawal of correspondent banking relations to Caribbean banks.  The loss of these relations threatened to cut-off Caribbean countries from the global financial and trading system, including family remittances, foreign investment and payment for the import and export of goods and services.

The US Congress has now adopted a law in which new directives on de-risking have been included.   The law is the ‘‘William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021’’ (NDAA).

Section 6215 of the NDAA, which deals with Financial Services De-Risking, is the result of work by the Prime Minister of Antigua and Barbuda, Gaston Browne, and his diplomatic team in Washington DC, led by Ambassador Sir Ronald Sanders.

That work culminated in a US Congressional Round Table in November 2019, chaired by Congresswoman Waters, which gathered representatives of major US banks and a high-level Ministerial team from the Caribbean, led by Prime Minister Browne.

One of the major results of the Round Table was the Banking Committee’s decision to codify guidelines on de-risking in US law.

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Among the matters that the guidelines set out are that “providing vital humanitarian and development assistance and  protecting the integrity of the international financial system are complementary goals; and access issues are a concern for individuals and entities such as those sending remittances from the United States to their families overseas and certain domestic and overseas jurisdictions that have experienced curtailed access to cross-border financial services due, in part, to de-risking”.

One of the law’s fundamental directives is that “policies that encourage financial inclusion must remain a priority”.

Ambassador Sanders informed Congresswoman Waters that Prime Minister Browne expressed his gratitude on behalf of Caribbean states, saying: “We know that while this is a first step, it has created a pathway, within U.S. law, to advance reasoned discussions on the harmful effects of de-risking on cooperative jurisdictions”.

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]