BANKING AND FINANCE

Antigua offers full commercial banking services through international banks. The country is a center for offshore financial services, through major legislation, including banking, trusts and insurance.

Banking System

A full range of retail banking services is offered by several international and local banks. Antigua also has a local development bank and access to regional banks. Several banks and other companies provide offshore services and several banks are incorporated under the International Business Corporations Act of 1982.

Central Bank

The East Caribbean Central Bank, based in the neighboring island of St. Kitts, acts as central bank for its members, including Antigua and Barbuda, Dominica, Grenada, Anguilla, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent.

The East Caribbean Central Bank manages the fiduciary issues and monitors the commercial banks' reserves. The member states share a single currency, the Eastern Caribbean dollar (EC $). The individual states maintain exchange controls through their ministries of finance.

Banking Market

The major international and local banks carry out retail banking. These banks are listed in the table below. These banks provide the normal banking services needed by the general public and local business community, including drafts and letters of credit.

Several of the banks in Antigua offer executor and trustee services. The Antigua and Barbuda Development Bank loans mainly from the Caribbean Development Bank to students, farmers, and other local businesses.

Bank	Address	Telephone	Facsimile
American International Management Services	Woods Centre, Friar's Hill Rd., St. John's	(268) 462-9214	(268) 462-9215
Antigua & Barbuda Development Bank	St. Mary's St., P.O. Box 1279, St. John's	(268) 462-0838/9	(268) 462-0839
Antigua Barbuda Investment Bank	High St., P.O. Box 1679, St. John's	(268) 480-2701/2/3	(268) 480-2750
Antigua Commercial Bank	St. Mary's St., P.O. Box 95, St. John's	(268) 462-1217/9/2085	(268) 462-1220
Antigua Overseas Bank	High St., P.O. Box 1679, St. John's	(268) 462-0067/1652/3	(268) 462-0804
Bank of Antigua	1000 Airport Blvd., Coolidge, P.O. 315, St. John's	(268) 480-5300	(268) 480-5433
Bank of Nova Scotia	High St., P.O. Box 342, St. John's	(268) 480-1500	(268) 480-1554
Barclay's Bank PLC	High St., P.O. Box 225, St. John's	(268) 480-5000/8/9	(268) 462-4910
Capital Investment Bank	Redcliffe Quay, St. John's	(268) 462-6155/6160
Caribbean Banking Corp Ltd	High St., P.O. Box 1324, St. John's	(268) 462-4217	(268) 462-5040
CIBC Caribbean Ltd	High St., St. John's	(268) 462-0836/7	(268)
Commerce Bank of Antigua	St. Mary's St., P.O. Box 157, St. John's	(268) 462-5651/9618	(268) 462-5650
Credit Bank Int'l	Crosbies	(268) 462-5540
East Caribbean Central Bank	Redcliffe St., St. John's	(268) 462-2489/90	(268)
European Union Bank	14 Redcliffe St., St. John's	(268) 462-7887/8	(268)
The Hanover Bank	Chancellor Chambers, Island House, Newgate St.,St.John's	(268)462 4468	(268) 462 0327
International Bank & Trust Corp Ltd	Newgate St., St. John's	(268) 462-3647	(268)
Overseas Development Trust Corp Int'l Banking	Woods Centre, Friar's Hill Rd., St. John's	(268) 462-9232	(268) 462-9215
Premier International Bank Ltd	Woods Estate, Friar's Hill Rd., St. John's	(268) 462-9080	(268) 462-9220
Royal Bank of Canada	High St., St. John's	(268) 480-1150	(268) 480-1190
Stanford International Bank	1000 Airport Blvd., Coolidge	(268) 462-4283	(268) 462-0040
Swiss American Bank	Woods Centre, Friar's Hill Rd., St. John's	(268) 480-2246/2207	(268) 462-1831
Swiss American National Bank	High St., P.O. Box 1302, St. John's	(268) 480-2230/2281	(268) 462-0274
Worldwide International Bank	Market St., St. John's	(268) 462-9511/07/08	(268) 462-9505

Specialized financial institutions

Factoring and leasing institutions do not exist here in Antigua. A few finance corporations that are local have made available vehicle and equipment loans for short-term periods.

Investment institutions

Local insurance companies invest primarily in the commercial banks in Antigua. The government and like-government institutions are invested in by the Antigua and Barbuda Social Security Fund. As of 1991, there is not a substantial amount of private capital available for investment from these institutions.

Financial markets

Security Market

The only company that would qualify as a public company is the Antigua Commercial Bank. No stock exchange exists on the island.

Specialized financial markets

Forward purchases and foreign currency sales can be arranged at commercial banks. However, the amount of activity is small because the Eastern Caribbean dollar is fixed to the U.S. dollar at US$1.00 = EC$2.70. Also, the United States is the primary partner in foreign trade. Financial futures and commodities markets do not exist yet in Antigua.

International financial market

Retail banks can arrange for bullion dealing and foreign exchange but Antigua is not seen as the ideal location for these types of transactions.

Offshore Financial Services - International Business Corporations Act, 1982.

The International Business Corporations Act of 1982 allows for offshore banking, trust and insurance corporations. Here are the provisions of the Act:

1. Benefits:
   
   • Complete tax exemption.
   • Complete exchange control exemption and freedom to operate bank accounts anywhere.
   • No minimum capital requirement.
   • Automatic 50-year guarantee of tax-free status by government.
   • Statutory audit not required.
   • Bearer shares permitted.
   • Inward and outward redomiciliation provisions.

   Offshore companies also benefit from scheduled territory status under the Canadian tax statutes and from the absence of exchange agreements with the United States and Canada.

   These benefits are available to all international investment holding and trading companies. But for some specific types of businesses, all of the above benefits do not apply, as listed below.

   Banking

   An international business corporation (IBC) can apply for a banking licence. A minimum capital of US$5 million is required and banks are mandated to file quarterly returns. All business affairs and transactions are confidential. Disclosure of this information is considered a criminal offense and is punishable by a jail sentence, except when a court order is given in relation with a criminal offense that is triable in Antigua.

   Trusts

   An IBC trust company must have a minimum capital of US$500,000 with trustees or managers and must file quarterly returns. No restrictions apply on trust accumulations or against perpetuities. Trusts are governed by the British common law principles.

   Insurance

   The minimum reserve capital requirement is US$250,000. Annual audit reports must be filed by IBC insurance companies.

2. Corporate requirements

   Formation

   An IBC can be formed by two citizens or residents of Antigua and Barbuda who file articles of incorporation. One of these two citizens or residents must be an attorney. The government fee for incorporation is US$300. No stamp tax on capital exists. The date on the incorporation certificate is the date that the company begins to exist. The IBC is prohibited from anything other than international trade or business. It is also required to annually renew its licence for a US$300 fee.

   Capital

   A company needs to have a minimum of one shareholder. No legal minimum capital required. Shares can be of no-par value. Bearer shares are allowed but shares cannot be issued until the amount is paid in full. A solvent company may purchase and cancel its shares.

   Management

   A company needs a minimum of one director. A director's responsibilities and liabilities are explicitly written in the Act. The authority of the director can be restricted by the unanimous agreement of the shareholders. Records of all meetings and decisions of the directors must be kept in Antigua and Barbuda.

   Meetings and votes

   Telephone meetings are allowed. The director(s) of an IBC must annually hold a meeting with the shareholders in Antigua and Barbuda. All other meetings may take place outside of Antigua and Barbuda. The shareholders have a right to vote by proxy. A two-thirds majority of the cast votes is required for any fundamental change to be agreed upon and implemented. All decisions, minutes and notices to the director(s) of IBCs must be kept at the registered office in Antigua.

3. Source of funds

   Local financing

   Local banks vary in the amount of financing they make available based on the general fluidity of the Antiguan economy. A term loan to businesses is usually a maximum of ten years. Long-term finance is available although very limited.

   Fixed and floating charges over assets usually secure loans and overdrafts.

   No substantial venture capital exists and there is no stock exchange on the island. Following are the names of the development banks in Antigua:

   • The Inter-American Development Bank
   • The European Investment Bank
   • The Caribbean Financial Services Corporation
   • The International Finance Corporation, an affiliate of the World Bank
   • The Caribbean Development Bank

   Of the banks listed above, only the Caribbean Development Bank has given direct loans to business companies in Antigua.

   Available to foreign nationals

   To borrow from local banks, foreign investors need Exchange Control approval. A 3 percent stamp tax of the loan amount is due, unless the company is specifically exempt.

   Priority is given to nationals of the Caribbean Commonwealth and to companies directly controlled by such. However, the Caribbean Development Bank will make loans available to non-nationals under special circumstances such as when the company is specializing in the extra-regional export market.

   Finance is locally available but usually after a substantial amount of capital has been brought in. Foreign capital may be returned to its native country.

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