KINGSTOWN, St. Vincent, March 8, IWN – Several services at the Building & Loan Association, including the withdrawals of matured redeemable shares, have been suspended until Aug. 31, when a new rule will increase the notice period for some withdrawals to 180 days, up from 90.
The Financial Services Authority, which took over the BLA on Feb. 1., says the changes are “have become necessary for the purpose of protecting the interest of all shareholders, members and depositors as well as the public, and for ensuring that the Association remains financially viable”.
The FSA, which on Monday say said the changes take immediate effect, outlined it decisions in a press release as follows:
Ordinary/Redeemable Share Accounts
- New loans secured on Redeemable Shares will not be available until Aug. 31, 2013.
- Maturity extensions on loans secured on Redeemable Shares will not be granted until Aug. 31, 2013.
- Further increases on existing loans secured on Redeemable shares will not be available until Aug. 31, 2013.
- Withdrawals /Redemptions of matured Redeemable Shares are suspended until Aug. 31, 2013. With effect from Aug. 31, 2013 a new Notice Period of 180 days is established for the withdrawal of matured Redeemable Shares. Interest accrual will however continue at the current interest rate.
Special Deposit Accounts
- New loans, extensions of maturity on loans, and amount increases on loans secured – or to be secured – on Special Deposits are suspended until Aug. 31, 2013.
- Withdrawals of interest paid on Special Deposit Accounts are suspended until Aug. 31, 2013, although interest accrual will continue at the current interest rate.
- New Withdrawal Notice requirements are established for Special
Deposits accounts, as follows:
a) A 180 days notice is required to withdraw up to 25% of special deposit balance up to a maximum of EC$25,000 whichever is less.
b) Each Special Deposit account is restricted to 1 notice every 6 months.
Ordinary Savings Accounts
- Withdrawal Notice requirements are established for Ordinary
Savings Accounts, as follows:
a) Accounts with balance over $10,000:
A 30 days notice is established for the withdrawal of funds from Regular Saving Deposit accounts, up to a maximum of EC$2,500.
Each member is restricted to 1 notice per month.
b) Accounts with balance under$10,000:
A withdrawal of funds up to a maximum of EC$2,500 per month applies.
The effectiveness and impact of these temporary measures will be continuously monitored and will be analyzed and reviewed periodically.