Exactly one week after Finance Minister Winston Dookeran ordered Clico to discontinue all payments to its Executive Flexible Premium Annuity policyholders, the insurance company entered into a formal agreement with the Bank of Nevis Ltd and its offshore banking arm, the Bank of Nevis International Ltd, to repay the financial institution the equivalent of US$4.3 million over 15 months. The agreement between Clico and the Nevis bank followed legal action initiated by it against Clico for the full repayment of all outstanding principal and interest payments on May 17, 2010-seven days before the last general election.
The banks were awarded judgment in default of appearance against Clico on May 26, 2010, according to the bank's 2010 annual report, which was two days after the general election. On September 15, 2010, which was exactly seven days after the presentation of the 2011 budget, "the banks and Clico entered into a formal agreement for the repayment of the outstanding amounts. At the time of the approval of these financial statements, all payments under the agreement have been honoured." The formal agreement envisages that the Bank of Nevis would be fully repaid after 15 months. The annual report disclosed that as at June 30, 2010, total fixed deposits held with Clico by the Bank of Nevis Limited and its subsidiaries collectively were EC$11,734,097, which was equal to US$4.3 million with an accrued interest of EC$176,757.
On February 13, 2009, the Central Bank of T&T invoked Section 44D of the Central Bank Act in order to take direct control of Clico and its operations. While the Bank of Nevis, a regional financial institution, would have received millions of dollars towards the repayment of its investment in Clico, thousands of local individual EFPA policyholders have received no interest payments in the 11 months since the Finance Minister's announcement and have been unable to get the insurance company to honour their matured policies. At a March 2010 news conference, Central Bank Governor Ewart Williams and Clico chief executive Carolyn John outlined a proposal to repay EFPA policy holders with invested sums above $100,000 at least $100,000 a month. Had the Williams/John proposal been adopted by the current Finance Minister, all EFPA policyholders with investments of up to $1 million would have been completely repaid by this month.