Guyana is allowing a failed insurance company to sell prime real estate in the South American country to honour its commitment to policyholders and pension fund contributors.

Chief Justice Ian Chang said Saturday that he approved the immediate sale of properties as the liquidation of Colonial Life Insurance Company continues.

Guyana seized Clico after its Trinidad-based parent company CL Financial Limited received a government bailout.

CL Financial recorded huge losses in real-estate investments and could not borrow enough money on credit markets paralysed by the global financial crisis.

More than 15,000 policy-holders are currently waiting for reimbursements.

The government has said Clico's liabilities of more than US$60 million far exceed its assets.

- AP