(de Ware Tijd) PARAMARIBO – Trinidad’s Republic Bank is interested in taking over the state’s shares of the Hakrinbank, the bank’s general director Jim Bousaid tells de Ware Tijd. The state currently holds 51% of the bank’s shares. “Thus it involves a partial takeover,” Bousaid says, adding, “The government is willing to discuss this.”
In August, the Hakrinbank mentioned talks between the two banks in its semi-annual report, but has not provided any details until now. Bousaid says the interest in Suriname seems to fit Republic Bank’s strategy well, as this bank has engaged in a policy of takeovers in the Caribbean in recent years. Suriname is attractive to Republic, as the economy revolves around commodities, unlike those of the Caribbean islands where services and tourism are the main economic sectors. Says Bousaid, “Republic can expand its activities with the takeover of the Hakrinbank.”
Besides, Trinidadian companies are already active in Suriname’s economy, particularly in the oil sector, he adds. The bank executive expects the partnership to bring benefits for the Hakrinbank. “Republic is the Caribbean’s biggest bank; it has a good structure, good ICT. They can help us with training in those areas.” The Hakrinbank wants to improve efficiency and lower costs. Legislator Ruth Wijdenbosch (NF/NPS) has asked the government for a clarification about a possible privatization of the Hakrinbank. In a reaction to Bousaid’s statements, she says she is pleased the bank has provided information, but still has some questions. “Is this really the right moment to sell shares now that banks are collapsing worldwide? Is a Caribbean bank the best you can get now? How much will the people get in return for those shares?” Wijdenbosch asks. She will table this issue again during the debates on the law on money transfer offices.