Scotia blanks sale of Guyana operations

Jun 10, 2022 News

Kaieteur News – Months after announcing the sale of its Guyana operations to First Citizens Bank Limited, Scotiabank yesterday disclosed that the agreement of sale has since expired.

Scotia blanks sale to Citizen’s Bank to retain Guyana operations

Scotiabank in making the announcement confirmed that “the agreement has (since) been terminated in accordance with its terms.”
According to Scotiabank, the financial institution remains committed to providing the highest level of customer service and quality banking solutions “to our customers in Guyana and across the Caribbean.”
Scotiabank had first announced back in March that it had reached an agreement for the sale of its banking operations in Guyana to First Citizens Bank Limited (FCB)—subject to regulatory approval and customary closing conditions. The Bank in making the announcement at the time had said the transaction supports Scotiabank’s strategic decision to focus on operations across its footprint where it can achieve greater scale and deliver the highest value for customers. Scotiabank’s current operations in Guyana encompass four branches and approximately 180 employees.

First Citizens is Headquartered in Trinidad and Tobago and offers a full range of retail, corporate and investment banking services as well as wealth management, trustee and brokerage services to clients through its operations in Barbados, Costa Rica, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago. The announcement of the sale had first been met with consternation since, Bank of Guyana, the financial regulator had not been informed of the transaction neither had Trinidad’s First Citizens Bank applied for a banking licence in Guyana although it had agreed to buy Scotia bank’s operations.

“FCB does not have a licence to operate in Guyana. FCB has not submitted an application,” the Bank of Guyana said in a statement. The Central Bank at the time was adamant, that an application must be made in keeping with the requirements of the Financial
Institutions Act 1995 (FIA), to the Bank of Guyana to acquire control of a bank (in this case the Bank of Nova Scotia) operating in Guyana.
The Bank of Guyana further noted that the Bank of Nova Scotia entered into a purchase and sale agreement “without informing” the Central Bank. FCB published a notice in the Trinidad Guardian on its decision to enter into a purchase and sale agreement with the Bank of Nova Scotia (BNS) to purchase its operations in Guyana. That notice was published in the Trinidad Guardian on its decision to enter into a purchase and sale agreement with the Bank of Nova Scotia (BNS) to purchase its operations in Guyana.