IN January 2009, when it became clear that the Bank of Antigua was experiencing extraordinary volumes of withdrawals that could threaten its viability, the Government of Antigua and Barbuda — in conjunction with the Eastern Caribbean Central Bank — had to take pre-emptive action. In this regard, advances made by the Eastern Caribbean Central Bank had to be underwritten by the Government of Antigua and Barbuda by way of a Treasury Bill issue in the amount of EC$89 million.

The line of credit available to Antigua and Barbuda was less than the required amount, and as is the case when ECCU member governments from time to time experience shortfalls, the ECCB co-ordinated with the other governments to secure the line of credit for the requesting government, in this case Antigua and Barbuda. This is by no means an unusual situation, and from time to time different governments in the currency union avail themselves of this facility.

On April 1, 2009, the ECCB’s Monetary Council approved the necessary lines of credit. The end result is that the Government of Antigua and Barbuda has a loan due to the ECCB, and not to any government, in the amount of $89 million.

The actual amount allocated by the Government of Dominica under this arrangement is EC$5.756 million. Further, the allocation does not represent a direct transfer from the Dominica Treasury to either the Government of Antigua and Barbuda or to the Eastern Caribbean Central Bank. It is an allocation of a line of credit in keeping with Section 40 of the ECCB Agreement.