Heads of Government to tackle issues of de-risking, Brexit in Guyana

first_imgIn light of threats to the Region’s financial and economic stability by Brexit, when Caribbean Community (Caricom) Heads of Government meet in Georgetown next week, the main focus will be placed on de-risking by International banks and the impact of the United Kingdom’s (UK’s) decision to exit the European Union (EU).According to a release by the Caribbean Secretariat, chief among these are the threats posed by international banks limiting or terminating their relationships with regional financial institutions, and the yet to be determined implications of the British decision to leave the European Union (EU), a key partner in the Community’s development.The statement noted that the referendum to exit the EU has sent Britain and the rest of the world into a ‘tailspin’. The pound sterling fell to its lowest value in 30 years, and international financial markets took a downturn, as the implications hit home.Caricom is claiming it is not immune from the potential fallout, while economists and politicians alike are assessing the situation. The majority of Caricom Member States were former colonies of Britain, which was a key ally of the Region within the EU.The release added, while some have adopted a wait and see stance, confident that any domino effect will not occur in the short-term, others are predicting immediate consequences and want the Caricom Member States to appreciate the value of regional integration and band firmly together to chart the way forward.The concerns range from a dip in the arrivals of tourists for dependent Member States such as Saint Lucia and Barbados, where the UK is a major source market; a decrease in development assistance, to effects on trade agreements the Region has with the EU.last_img

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