A former top banking official of the St Kitts Nevis Anguilla National Bank has issued an appeal to businesses within St Kitts and Nevis to diversify. Andy Liburd who once headed the bank’s operation in Nevis in an interview with this reporter says that he is “very concerned and worried” about the effects of the global financial crisis on businesses in St Kitts and Nevis especially small and medium size companies while urging them to ensure that they diversify into new markets if they are going to remain viable and operational.

Liburd went on to point out that with markets around the world especially within the USA and Europe decreasing rapidly there has and continues to be consequent effects on its businesses. This he noted “certainly requires serious tolerance” from financiers and bankers and would certainly force them to remember that “money is virtually useless, if not put to work; as such it must be put effectively and efficiently to work.”

 Liburd who is now the Managing Director of Nevis Multi Line Services bin Nevis pointed out that it is critically important for the banking sector to better understand and appreciates the efforts being made by small companies in their efforts to survive. “As a former banker I urge the banks in St Kitts and Nevis to be more appreciative and understanding of the serious plight of many of these companies and to demonstrate greater tolerance and understanding in their credit facilitation provided.

 It is very possible that many companies would have to seek better refinancing arrangements in the interest of corporate survival as the banks need to understand that with every closure of business results in loss of some amount of jobs thus resulting in increased unemployment,” he said.

 The NEMUS MD said unless strong government guarantees are forthcoming, and notwithstanding the overall strength of its financial sector there are some companies in St Kitts and Nevis that have been seriously affected by the crisis noting that this can and will pose problematic for a number of employees.

 He noted that the companies experiencing challenges would be faced with growing and major difficulty in areas such as medical coverage for its employees and long term job security for workers thus affecting their pension rights.

 In a plan of action that he revealed to seriously and aggressively address the current problem, Liburd pointed out that companies regardless of the challenges faced need to explore market diversification if they are to remain alive and competent. The former banking official declared that there are a number of opportunities that will be created as a result of the financial crisis being faced thus providing significant opportunities for companies that are innovative, creative and aggressive having the right liquidity to diversify.

 Liburd added that one evident opportunity will create a platform for businesses to consolidate common services; take advantage of the drop in prices for special items, facilitate repatriating overseas capital for investment in key priority sectors.

 He stressed that with systemic constraints to business investments where those exist; there is a critical need for the relevant stakeholders to invite the St Kits and Nevis Diaspora to participate in local investment opportunities; the sourcing of capital from non-traditional places such as the Middle East, Latin America and North Africa and industrial partnerships with companies in the emerging industrial countries.

 Referring to what he dubbed as contemporary history, he said that this has shown that corporate investments made during an economic downturn could yield as much as a 30% greater return in the long term when compared with investments made during “normal” conditions, thus reinforcing hiss point that significant opportunities are available for companies willing to diversity due to the current financial crisis faced. .