IDB approves loan to strengthen financial sector in Trinidad & Tobago

US$50 million to improve regulatory framework and supervision

Trinidad and Tobago will strengthen its financial sector supervisory and regulatory framework with a US$50 million loan from the Inter-American Development Bank (IDB).

“Trinidad and Tobago is considered the regional financial center for the English-speaking Caribbean and the global crisis impacted its financial sector,” said IDB Financial Markets Lead Specialist and team leader Juan Antonio Ketterer. “The country enjoys a relatively strong external position and in terms of public debt. This program will focus on reinforcing macroeconomic stability to minimize the impact of exposure to any future vulnerability or systemic crisis.”

“This program will also help to strengthen financial sector regulation, as well as to improve supervision of the sector,” added Claudia Stevenson, IDB Private Sector Development Sr Specialist. “This operation will create the environment for private activities to flourish and will contribute to support regional integration.”

This financing is the first of a program of two policy-based loans. This first operation has also identified the policies and reforms that will be implemented with the second one.

The IDB loan approved today is for a 20-year term, with a five-year grace period, at a variable interest rate based on LIBOR. The Ministry of Finance will be in charge of the program.