Eastern Caribbean governments have announced a rescue plan for British American Insurance, a sub-regional subsidiary of the troubled Port-of-Spain based Clico group.

The Monetary Authority of the OECS group, the Eastern Caribbean Currency Union, said the liabilities of British American in the Eastern Caribbean total just over EC$1 billion.

According to the union, in the event of closure of British American, policyholders in the Eastern Caribbean will likely get $0.10 on their dollar.

Even under the rescue plan, losses seem inevitable but the governments believe there is an opportunity for greater recovery over time.

The centerpiece of the plan is said to be the formation of a new company to take over some assets and liabilities.

However, such a move would require court approval and new funding.