Fellow Anguillians.

I have just returned from the meeting of the OECS Monetary Council which discussed the global financial situation. I can assure you that the situation is being well managed in Anguilla and the various countries in the OECS under the direction of the Eastern Caribbean Central Bank and the Ministries of Finance, including our own Ministry. The Executives of the various financial institutions are monitoring their individual situations very closely and responding to any challenges as appropriate.

Questions have been raised by the general public and concerned persons about the impact of the global banking and financial crisis on our banking system. Anguilla and other countries in the OECS did not have any of the large so called toxic debt that caused the international banking institutions to have financial problems. Because the OECS is one of the most highly regulated banking regions in the world, our institutions were not allowed to take part in high-risk loan portfolios and other financial services products that caused banks in the developed countries to fail.

The global economic slow down has lessened the amount of money available for banks to lend each other on a daily, weekly, monthly or annual basis. This movement of funds between banks is what keeps the financial system working and provides the liquidity for all transactions whether it is for a small car loan, one for a medium size house or for a large project. The world revolves around credit, and all banks in the world are impacted when economies slow down.

It is imperative for me to indicate that there is no banking crisis in Anguilla or in the OECS. All of our local banking institutions are sound, and we will come out of this global economic slow-down successfully because of the impressive regulatory system in place through the Eastern Caribbean Central Bank.

The ECCB is giving daily support and oversight to the various institutions in the region. The oversight and direction of the ECCB is appreciated. There still will be short term challenges but we expect that these will be resolved over time.

We are aware that Banks have curtailed lending in response to the prevailing uncertainties in the regional and international credit markets. However, I would expect that lending by Banks will increase as market conditions improve. I would encourage individuals who are affected by these economic times to make every effort to work closely with the Banks in the management of their financial affairs.

I have faith in the people of Anguilla, our institutions and in our ability to come together as a people in these challenging times. The next twelve months will be critical as the international community implements measures to stabilize the world economy. In the same way, the Government and people of Anguilla must create and maintain an atmosphere of stability in our country. This will be achieved through sensible economic policy and thrift, coupled with careful and targeted spending, especially on public and private sector investments that stimulate and sustain economic growth.

May God bless you, and may God bless Anguilla.