Tuesday February 9th, 2010
- Last update:14 hours 23 min ago
T&T borrowing $13b
Published: 20 Nov 2009
Karen Tesheira
From January 2007 to the end of the current fiscal year, Government intends to borrow more than $13.6 billion to finance the budget deficit, pay for several large government projects and to fund the government’s money supply management strategy for the economy. Responding to a question by the Opposition during private members day in the Senate earlier this week, Finance Minister Karen Nunez Tesheira said the government has already borrowed more than $8.8 billion since January 2007, and plans are already being made to raise another $4.77 billion to continue its strategy into the new fiscal year. The funding needs for the next fiscal year include $2 billion from the domestic market, $2.2 billion from foreign capital markets and another $572.3 million in project related loans. She added that the Finance Ministry was in the process of developing a plan for Trinidad and Tobago’s borrowing requirements for the medium term – that is for the next three to five years beyond the current fiscal period.
She said that in total, from January 2007 to the end of March 2009, the state borrowed more than $8.8 billion. This includes nearly $3 billion from the domestic capital markets and more than $5.8 billion from international sources. Prior to the current fiscal period, the Central government borrowed three times through bond issues on February 2007 amounting to $674.3 million, in April 2007 another issue was made for $1.02 billion, and this was followed up by another bond issue of $1.2 billion in February 2008. The Minister said all three approaches on the local market was necessary for liquidity management and to control inflation in pursuit of the government’s management strategy for the local economy. External borrowings included 190 million British pounds (TT$2.008 billion), US$465 million (TT$2.953 billion), 17 million Australian dollars (TT$99 million) and Chinese RMB 800 million (TT$744 million). The total external borrowings in local currency from January 2007 to March 2009 was valued at TT$5.8 billion.
The external loans include 190 million British pounds as export credit guarantee for the purchase of two fast support and intervention vessels, three offshore patrol vessels as well as training and support packages for the purchase in April 2007.
Also in April 2007, government borrowed US$15 million and 17 million Australian dollars to purchase another six fast patrol crafts. Thirteen months later Government again approached the international markets in May 2008, to refinanced a US$150 million bond issue that was due for repayment. This was followed up one month later in June 2008, when government secured a Buyers Credit Loan for the construction of the Alutrint aluminium complex project. At that time another Chinese RMB 800 million loan was secured through a concessional rate facility with the Chinese government for the construction of Alutrint. Minister Tesheira said the interest rate on the funding ranged from a high of 8.25 per cent for domestic borrowings, to as low as 2 percent for the Chinese loan for Alutrint.
Seems this Government is
Seems this Government is hell-bent on taking the country down the slippery slope of the debt trap. Sooner or later this debt will begin to spiral out of control as much of the declining revenues from the oil and gas sector will have to be directed to servicing these loans to pay interest and capital.
Mismanagement of the economy and finances and poor governance have led us to this situation which has benefited just a few select people at the expense of the general population. This Government has squandered the nation's patrimony for the creation of wealth for the few.
Where will the funding for future budgets, including upkeep and maintenance of of those white elephant mega-projects come from? Increased local taxation? Fines from traffic violations? Fines from infringements of the tobacco law? We have already seen the public outcry to increased property taxes just for a little revenue. The unemployed don't pay income tax, instead claim social security. Bankrupt businesses don't pay taxes, instead their employees lose their jobs and no longer pay income tax but join the breadline.
It is not too late for Government to re-consider the priorities in it's capital expenditure projects. If they continue on this reckless path they will lead the country into the valley of debt. If things continue as they are going, soon the Government will be unable to manage its debts and local and international lenders will refuse to make new loans available, leaving the country to return to the clutches of the IMF and their policies of structural adjustment programs and their social fallouts.
It's time to be rid of this megalomaniac albatross around our neck or we will all go down in the maelstrom they have created.
And Prince don't forget the
And Prince don't forget the billions Petrotrin borrowed, its a Govt corporation and its a debt on the citizens of TT. And if Petrotrin gets rid of its union, do you think countries with International union affiliation will handle Petrotrin cargoes. But they will go ahead and borrow and waste. Is this borrowing for current account purposes? to pay salaries? if so its bankrupt.
MR. MANNING, MRS. TESHERIRA
MR. MANNING, MRS. TESHERIRA AND MR. BROWNE....
This is why I have been trying to meet with all three of you, concerning the Heritage and Stabilisation Fund, for over 6 months.
The IMF, World Bank and the UN are mandating many Governments to invest their Reserves with an ALM strategy Product and an ALM Firm, and more than likely it will be the Forefathers or creators of the ALM strategy i.e. Ryan ALM Inc. Just visit the "unpri.org" and take a look at thier reports on " The Principles of Responsible Investing"
Once TNT has to approach the IMF or the World Bank, they are going to mandate that TNT reserves in this case The heritage and Stabilisation Fund be placed with ALM, which is not a bad thing, since today's assets tied to ALM total in the Trillions.
Mr. Manning your Government needs to be proactive in this one, and not Reactive. I recommend that after the CHOGM, that we meet , of your Ministers are too busy...
Cheers: Concerned Citizen
ALL ACROSS THE WORLD GOV'TS
ALL ACROSS THE WORLD GOV'TS ARE RUNNING UP DEFICITS LIKE NOBODY'S BUSINESS SINCE THE WORLD ECONOMY HAS STAGNATED FOR THE LAST 18 MONTHS OR MORE, CANADA'S PROJECTED DEFICIT IS OVER 50 BILLION $ WHICH WILL BE THERE FOR THE NEXT 5 YRS YET IN CANADA THERE IS VERY LITTLE HYSTERIA OVER THIS DESPITE HAVING A TORY PARTY IN CHARGE.
INSIDE THIS "BLOG" IS JUST A CERTAIN GROUP THAT LIKES TO COMPLAIN SINCE THE UNC GOD LEADAH NOT IN POWAH.
ALL ACROSS THE WORLD
ALL ACROSS THE WORLD -
All countries across the world are not oil and gas economies and having just had wind fall incomes. We should only compare ourselves to countries that are in similar circumstances. This is just another attempt to make excuses for PNM wanton waste and inefficiency. Rowley is a UNC now I hear him complaining. I am sure in Canada the conservative groups are concerned as they are in the US. There are tea parties protesting the government spending all over the States. You conveniently put together your disinformation as part of your propaganda campaign. Under the guise of loving your country you protect Calder Hart amid the raid of our treasury. You show absolutely no concern. PNM told us MASSA DAY DONE. It looks like MASSA DAY RETURN in the person of Calder Hart. Lock up Panday for 10 million and let off Hart for 10 billion. You tried to lock up Rowley for talking out protect Calder Hart. You are prepared to discriminate against your own Rowley to protect Hart. Self hate is evident. You are supposed to be the African Party; with friends like you the black man does not need enemies. This is what Butler, Weeks and Williams had struggled for to sell out our patrimony. Yuh quick to bad talk Indians yet anytime Manning goes abroad the only person he could trust to act is Saith an Indian. BLACK SKINNED WHITE MASK traitors on board.
If I recall, the budget was
If I recall, the budget was based on oil price of $55 US. Oil has been at $80 for most of the time since the budget...so why a deficit.
Even with the borrowing it
Even with the borrowing it leaves T&T with a 33% debt to GDP ratio. Most countries would kill for that type of ratio.
Arima boy TT does not export
Arima boy TT does not export oil on a large scale, most of its oil is for its refinery, And there we have a separate topic as countries are going away from tagging gas economies to price of oil. oil price is oil price, gas is gas, that tells you what these ministers up at the top dont know their elbow from their ankle in kind words. there is not much distinction now between sweet oil and sour oil, in fact refiners are saying give us sour oil.
"SO WHAT!!" says Mr.
"SO WHAT!!" says Mr. Arrogant-ius
- We will just continue to borrow more to be able to make the repayments. (sounds like a bad-pay Credit Card scenario)They're not going to be around to finance these debt repayments ... And if they were, they, their children and grands could probably afford it. (maybe even lend back some $$$ to T&T) KNOHO
Is Pipers running this
Is Pipers running this country the UNC ran this country with 10 billion budget 10 yrs ago in that space of time we budget reach 45 plus billion dollars, You telling me we cant live off 35 billion is either Pipers running the show, a big set of stinking thieves or all ah we suffering from FAS (Fat Ass Syndrome)….My take it is a bunch of Stinking Thieves WHO SHOULD ROT IN HELL …for want of a surgery to save a child a 2 million dollar flag was raised ……
According to T&T's Central
According to T&T's Central Bank the debt to GDP ratio at the end of 2008 was 39%. The ratio in 2008 was reported to be 29%. If the Gov't continues to increase it's future budgets from current levels of $50/55 billion and to finance the deficits through borrowing, the likelihood is that the debt/GDP ratio could rise exponentially and we could find ourselves ranking with countries like Zimbabwe and Jamaica. The big countries with hard currencies like the UK and US can always print more money or engage in "quantitative easing" but little ones like T&T can't. The big economies do not depend on the vagaries of a "monoculture" like T&T.
I think this is yet again
I think this is yet again another mistake the government is making, continuing to force struggling families to stay afloat financially by borrowing more money and using Cash Advance services. All the money wasted on the Iraq war could have easily changed America’s financial situation right now.