The Auditor General flags the high delinquency rate at the Cayman Islands Development Bank.
At the close of 2017 56 percent of loans there were bad.
The Auditor General stressed there is a need for stronger policies for the screening of clients applying for loans at CIDB.
CEO and General Manager at CIDB Tracy Ebanks assured the delinquency rate is not increasing at the bank.
She said, “It is not that we continue to write bad loans, this is a matter of a legacy debt that simply needs board approvals to write off as these loans are fully provided for at the bank.”
Ms. Ebanks said over the years the banks has tightened its policy.
She said the bank is crafting a new strategic plan to address and remediate the legacy loans.
“Part of the strategic plan will be to launch a public awareness campaign to the hopes to position us as the preferred, accessible bank for Caymanians,” she said.
The Auditor General also flagged the high number of restructured loans at the George Town bank.
“We continue to see a large number of restructuring primarily to capitalize interest and/or property insurance payments. In the 18-month period ended 31 December 2017 loans totaling $1.28m (4%) [2016: $3.16m (10%)] were restructured. Four (4) of these restructured loans have an outstanding principal balance of $167k and are 90 days or more in arrears and therefore considered impaired,” she said.
Addressing the restructured loans, Ms. Ebanks told Cayman 27, the bank tries to work with the customers “in the hope the customers will be able to pay off the debts, sometimes it does not work out.”
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