Banks declare to assist, as gov’t plans evaluation of charges

McKeeva Bush in parliament, Cayman News Service


McKeeva Bush in parliament

(CNS): Government will continue to press local banks to reduce interest rates, and it has accepted a motion by McKeeva Bush MP (WBW) to look at creating a local interest rate-setting body and allow the government-funded Cayman Islands Development Bank to accept deposits. But the local retail banks have defended their refusal to delay or lower interest rates, saying they are helping clients, which is reflected in the low home loan delinquency levels.

The private member’s motion, brought by Bush and supported by Chris Saunders (BTW), was debated in parliament Thursday. Most MPs agreed that government must do something to deal with the hikes in interest rates that, in some cases, have led to mortgage payments doubling over the last year.

Premier Wayne Panton was not in full agreement with Bush’s motion, but he accepted the proposal, acknowledging the “unenviable situation” in this jurisdiction navigating the problem of inflation and the…