Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers@guardian.co.tt
Finance Minister Colm Imbert has announced that the current value of the Heritage and Stabilisation Fund (HSF) stands at US$6 billion.
Imbert made this statement yesterday via a post on X (Twitter).
He said in June 2022, the value of the HSF was US$4.7 billion, which was attributed to instability in the international financial system at that time.
"Now two years later, because of prudent management, the value of the HSF has increased to US$6 billion, an increase of US$1.3 billion,” the finance minister said.
Commenting on the announcement Economist Ronald Ramkissoon told Guardian Media that the increase in the value of the HSF is a very positive thing.
He said when the fund was set up in the early days, several economists had called for a separation of the fund between funds that are to be invested for the long term and funds required for fiscal stabilisation.
“We had suggested, and then you had a part of it that would have been necessary for stabilisation, meaning when the price of gas and oil is low, you are then entitled to draw on the fund.
As you know, we have done several drawdowns over the last few years, which were very much in keeping with what the law that sets up the fund, allows.
“So no one can argue that notwithstanding several drawdowns made, the fact is that the fund has increased, true, because of the wise investments, if you like, that have been made. I would still argue for a separation of the funds,” Ramkissoon outlined.
He noted that how the HSF is spent is usually presented in the budget or mid-year review.
“It is up to the government of the day, to spend in the way that they think is best. So, yes, they need to be transparent about what they are spending and what they're asking the money for, which they do as a matter of course in the normal budget, mid-term, to some extent, and then annually.”
The HSF's 2023 annual report said that the the fund stood at US$5.39 billion at the end of September 2023, a 14.4 per cent increase compared with the US$4.71 billion at the end of September 2022.
In the summary of the annual report, which was available in May 2024, HSF chairman Ewart Williams said the Fund returned 10.59 per cent for the 2023 financial year, "partially recovering from the steep losses during the previous financial year, when the Fund declined 16.52 per cent."
Williams said the Fund's positive performance was mainly driven by its equity investments, which returned 9.24 per cent as stocks rallied more than 20 per cent.