'FINSAC ruined me' - Man loses business, home during '90s me

[Jawge]

Lazie you are too gullible. Boss the man took out a loan of 480K for his business. WHat's hidden here? We don't know the size of his business as it relates to the 480K and the ability of his business to perform to pay off the 480K loan. Was it a fixed rate or variable rate? It seems like a variable (to keep in accordance with the sliding jakan dollar). was he forced to sign for this loan?

Lazie, the above is cammon occurence in JA: As aboy in Mobay I would hear that Mr. so an so lost his home, tractor, grader and other eequipment because he can't pay the bank. It seems as if we in Ja don't know how to do business with banks; if they tell us that our business can secure a Million we go for the mil (when closer study will show that the business cannot produce after cost to pay back the mil).

Look at Mr.Lewis (who also blames FINSAC) the engineer; he took out a loan because a US firm promised (key word is promised) to buy x amount of transformers. Now not even half way in the deal, specifications were changed and he could not meet them. Now I know that company still needed those transformers, so where did they get them? I bet you can look to Asia. We cannot blame our poor business practice on the govt.

BTW Mr. willis met in a car accident (my sympathies go out to him) what does that have to do with Omar? If the medical bills start to hit him and affect his business, he can't balme Omar. What if you fell ill and had difficulty with your mortage, are you going to blame the bank? (oh dem fi ease up pon I man cause mi sick an cyaan werk). Boss when you are in business of certain magnitude you have to draw up a detailed paln with contingencies.

From where I stand: most Jakans aren't ready to deal with banks. Dem fi do like mi; through mi cyaan read an write fi undastan banking, throw one pardner. Now if dem did put like say three han inna one pardner dem would a set. Don't under estimate "pardner" that's coming all the way from the motherland. Matter of fact it helped Cameroon's economy at one point. It also put thousands of jakans in homes in the US. Werk wid wha yuh know.
"Mi faada always tell mi say nuh put yuhself inna carton box when a mathes box can hol yuh"

Seriously some ah wi (myself included) fi leff bank alone an go throw pardner.

[1of1]

blinkers!

[Muadib]

lol..

Govt FINSAC in America ruining people lives with skyrocketing Interest Rates doubling and tripling loan balances ?

Tell me more !

[1of1]

why is it not happening now in america

[Muadib]

Mek mi juss seh... try dat in America and si how much suicide mission occur..

Is di slave mentality save Omar dem.. know dat.

[MdmeX]

NCB was too big to close

NCB was too big to close
Davies makes startling disclosure to Finsac enquiry

BY PATRICK FOSTER Observer writer fosterp@jamaicaobserver.com
Thursday, November 26, 2009

THE Finsac enquiry into the 1990s financial meltdown received startling news yesterday for the first time that the National Commercial Bank (NCB), then Jamaica's second largest, was only spared because it was too big to close.

Former finance minister, Dr Omar Davies told the enquiry that he gave the National Commercial Bank (NCB) special treatment because of the "too big to close" syndrome.

He was answering questions from Delano Seivwright, president of the Jamaica Labour Party affiliate, G2K, at yesterday's sitting of the enquiry at the Pegasus Hotel in New Kingston.

Dr Davies spent his time vigorously parrying questions from the public, mostly disgruntled entrepreneurs who lost assets after the Finsac intervention in failed banks during the 1990s.

Before the former minister's disclosure, it was widely believed that only the so-called indigenous financial institutions, including Eagle, Citizens, Workers, Century National and Horizon, had gone under, because of the practices of their principals. Davies and Finsac supporters argued that the established banks held firm by sticking to core competencies.

Finsac - the Financial Sector Adjustment Company - was set up to cauterise the meltdown and take over the failed institutions. Yesterday, Davies reiterated that Finsac's intervention was aimed at "healing" the financial sector.

But the enquiry appeared stunned when he told Seivwright that Government did not shut down NCB but chose instead to replace the bank's board of directors, adding that the problems at NCB came towards the end, once the Finsac intervention was already in train.

Davies, asked if the finance ministry closed Eagle Commercial even though he knew it was not insolvent at the time, admitted that Eagle Commercial Bank was solvent when it was shut down, but that other companies in the Eagle Group were in serious problems.

He then urged the commission to get former Eagle executive Paul Chen Young to testify regarding the status of the group.

The plight of borrowers in the failed banks was vividly brought to the forefront yesterday with Commissioner Charles Ross questioning why interest rates continued to grow even after the non-performing loans were taken over by Finsac and then sold to the Jamaica Redevelopment Foundation (JRF).

In an impassioned question and answer session, one 'Finsaced' entrepreneur, Yola Grey outlined how her husband, who owned a construction company, borrowed $10 million, repaid $52 million, had their matrimonial house repossessed and sold for $20 million, and today still owed $85 million to the JRF. (I wouldn't pay them a dime more, they could put me in JAIL)

Commissioner Worrick Bogle also strongly questioned the treatment of debtors by Finsac and JRF, asking what was the reason behind radically increasing the debt to a borrower when it was difficult collecting in the first place.

Bogle charged that the approach lacked policy direction as it was designed to heal the depositors but there was no healing of the borrowers.

"What was the object of it all, to kill people?" enquiry chairman Justice Boyd Carey asked. (yes Judge - to give them heart attack or mek them walk and talk to themself! WIKKIDNESS!

Davies countered that interest rates accrued on loans whether they were being serviced by the borrower or was a bad debt. He insisted that he could not micro-manage the Finsac operation, adding, however, that a number of the rates were negotiated down by Finsac and many debtors negotiated repayment terms that they considered manageable.

Davies received strong support yesterday morning when senior members of the Opposition People's National Party, including Opposition Leader Portia Simpson Miller and chairman Bobby Pickersgill visited the sitting.
Pickersgill, in defence of Davies, told journalists that the Finsac intervention was the best solution at the time and it had been internationally accepted that the former finance minister's approach was effective.

The enquiry continues today at 9:30 am.

[MdmeX]

Sad fi true. How can you tell his sons not to be BITTER!

[Lazie]

So focking sad. Some stories I've heard about people falling victim to Omar's genius. Yet there are those that want to sweep all this under the carpet then return these same clowns into office?

[Lazie]

'FINSAC ruined me' - Man loses business, home during '90s meltdown

Participants in the ongoing commission of enquiry into the Financial Sector Adjustment Company (FINSAC) were left with heavy hearts yesterday as the hearing learned how the financial crisis of the 1990s and its aftermath ruined 59-year-old Mechesk Willis' life.

All eyes fell on Willis as he ambled to the microphone on two crutches.

Initially standing on the crutches, the mike was lowered to accommodate him and he took a seat to speak. When he was done with questioning former finance minister, Dr Omar Davies, the mood in the room, which had been charged, became sombre.

Willis said he owned a vibrant fabric business in the 1990s, where he sold the merchandise all over the island, and that he just wanted to improve his business when he borrowed $480,000 in 1994.

Willis' fortune, however, turned quickly in a series of events which saw his initial debt ballooning to more than $7 million and growing. He said he has already paid $1.5 million and has lost his house.

The struggling businessman's circumstances got dramatically worse after a life-altering car accident in 2001, which left him with several broken bones. Despite several operations, he was left on two crutches.

Willis' house, which was located in the middle-income community of Patrick City, St Andrew, was sold for $3.5 million which, according to his estimates, was a grossly undervalued figure.

"One morning, on the 24th of May, 2007, two men came and just threw my family on the street, including my little granddaughter, two months old at the time. The rain came and wet up everything, the children's books, clothes, everything," he told The Gleaner after the hearing.

Willis now lives in a one-room dwelling at a Kingston 20 address with his family of seven, which includes his wife, two daughters, two sons and a granddaughter.

Willis told The Gleaner that while he wanted to know what was done to protect borrowers such as himself when the meltdown occurred, what now weighed most on his mind was not the loss of his business but what he sees as the impending loss of his family.

Willis said he feared most for his sons, who he believes are being tempted by the lure of a criminal life.

He sounded like a beaten man as he explained that while he tries to tell them to lead an honest life, they believe the system he wants them to play by has cheated him.

Willis said his children find it hard to align his wishes with their behaviour because they now find themselves at the bottom of the social ladder, several rungs from where they used to be.

"Because of the area that we live in, other influence from other boys, I try to encourage them to stay in, not to go out and get involved in anything," he said. "The bigger one didn't get to finish school and get a level of education. I try to talk to him, but he doesn't listen."

His wife, who was involved in the business with him, is now suffering from what he believes is post-traumatic illness caused by the stress brought on by their loan problem. He said he has tried to encourage her, but it is hard to survive.

"Surviving now, some friends will give me some money and we use little little until someone else gives us something else," he told The Gleaner.


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