BROOKLYN, NY – The Trinidad and Tobago government Monday defended its economic policies amidst the coronavirus (COVID019) pandemic, saying the financial situation in the win island republic remains resilient.
Finance Minister Colm Imbert told a news conference that risks related to the pandemic had been largely contained, as was evidenced by the Financial Stability report.
“Despite COVID, the financial sector remained resilient even though there was this unprecedented economic shock. Soundness indicators for the banking and insurance industries suggest that the risks related to the pandemic were largely contained; institutions maintained healthy capital and liquidity buffers while dealing with deterioration in assists quality and affordability ratios,” Imbert said as he read from the document.
He said the initial impact of the pandemic had adversely affected the pension sector investment portfolio, “but…evaluations have since recovered and improved by the end of the year.
Imbert said Trinidad and Tobago have the highest credit rating of any Latin America and Caribbean country, noting that of all the Caribbean countries rated by the US-based agency, Standards& Poor’s (S&P), the oil-rich twin-island republic is in the lead.
“When I look at Latin America and the Caribbean, of those countries that are assessed by Standards& Poor’s, Trinidad and Tobago have by far the highest credit rating of any country within CARICOM (Caribbean Community).
“I want to repeat that. Our credit rating with Standards & Poor’s is by far the highest of any country in CARICOM. We are investment grade triple B- and Jamaica, for example, is B+, quite significantly down the scale.
“We are higher than Colombia, a significant emerging economy; they are double B,” he added.
Late last month, S&P affirmed Trinidad and Tobago’s investment grade rating of BBB-. The Ministry of Finance said differentiates Trinidad and Tobago from most countries of the region and reflects the country’s position as a safe investment place.
“Unprecedented health, economic and financial challenges resulting from the different waves of COVID have prompted a vigorous and coherent policy response by the Authorities. While S&P has affirmed the rating with a negative outlook in light of such exceptional headwinds, it has kept the view that conservative and competent policy management, including large financial buffers, attested to the high shock absorption capacity of the country.
The government said that the US-based rating agency highlighted that “unlike many commodity exporters, Trinidad and Tobago saved excess fiscal revenues during the boom years.”
Imbert said that “this decision validates our strategy to support the economy in the short term while having a clear plan to put our public finances back under control.”
According to S&P, Trinidad and Tobago’s expected fiscal consolidation and its sizable government assets will continue to support the investment-grade rating”.
During the news conference, Imbert was critical of those people he said should do more research before casting doubt on the country’s credit ratings, maintaining that Trinidad and Tobago’s economy is performing well.
“I am not sure any Caribbean country is better than us except Bermuda. If you consider Bermuda to be a Caribbean country, I don’t. Aruba, if you consider that to be a Caribbean country. Within the Latin American region, we are way ahead of most …of the countries, and I want to repeat Colombia, Paraguay, Brazil, Guatemala, Honduras, El Salvador, etc.
“We have a better credit rating than them, and therefore I would ask the critics to be more holistic in their examinations of the facts instead of trying to describe Trinidad and Tobago as a basket case. This is nonsense,” Imbert said.
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