Diaspora investors breathe new life into properties in Dominica and St Kitts and Nevis
BASSETERRE, St Kitts – The Eastern Caribbean Asset Management Corporation (ECAMC), mandated by the eight participating governments of the Eastern Caribbean Currency Union (ECCU) acquiring and managing non-performing assets in support of financial stability across the region, announced its first successful collateral sales in the region, signaling a positive step in the attainment of its mandate.
The sales, finalized in June and July 2024, mark a pivotal moment for the corporation as it continues to balance financial recovery with community development. Together, the two sales in Dominica and St Kitts generated a total of EC$1.25 million.
The first sale, an apartment building in Calibishie, Dominica, had long been in a state of disrepair. Purchased by a Dominican national living in the United States, this previously abandoned asset was sold for its market value and is now undergoing a complete renovation, bringing fresh investment and economic activity into the area.
In July, a second sale was completed in St Kitts, involving an apartment building that had suffered from deferred maintenance since 2012. Also sold at market value, the property was purchased by a Kittitian national living in the United States. This sale not only restores the value of a once-dormant asset but also reflects the growing trend of nationals abroad reinvesting in their homeland.
ECAMC’s CEO, Aiandra Knights, emphasized that these sales go beyond financial recovery.
“These transactions represent more than just a resolution of non-performing loans; they illustrate the positive impact that strategic asset management can have on communities and the respective countries. We are especially encouraged by the fact that both of the assets were sold to members of the diaspora, reinvigorating local economies and adding real value to the built environment in Dominica and St Kitts.”
Delivering on ECAMC’s mandate with a balanced approach
As a public asset management company established by the Eastern Caribbean Asset Management Corporation Act of 2015, ECAMC’s primary mandate is to manage non-performing assets while ensuring the financial sector remains stable and secure. However, Knights pointed out that ECAMC’s work is about optimizing value.
“ECAMC can proudly point to its active efforts in working with debtors who have the financial capacity to restructure their loans. In fact, 19 percent of our acquired portfolio has been successfully restructured to date, showcasing our commitment to finding sustainable solutions for all stakeholders involved.”
This balanced approach underscores ECAMC’s mission to maintain financial stability across the ECCU while working closely with debtors who have the potential to recover financially. “We are not simply about disposing of distressed assets,” Knights added. “We are about providing meaningful opportunities for recovery and collaboration.”
Amendment Broadens ECAMC’s Asset Acquisition Horizon
In addition to the recent sales, ECAMC is poised for growth following an important amendment to the ECAMC Agreement, which now expands the range of financial institutions from which the Corporation can acquire assets. This expansion now includes development banks across the region, opening up new avenues for ECAMC to fulfill its mandate.
While discussions with certain existing financial institutions have progressed at a slower pace, this broadened scope offers new opportunities for asset acquisitions. “We welcome the expansion of our market with optimism but also with caution, as we continue to seek sustainable solutions for funding,” Knights remarked. “The recent sales, both of which were finalized ahead of the projected timelines, give us confidence in the positive trajectory we are on as we look ahead.”
With a clear focus on delivering value to both the financial sector and local economies, ECAMC is well-positioned to move the needle forward in achieving its mandate and contributing to the overall stability of the ECCU.
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