Govt to borrow US$300M

“I want to make it absolutely crystal clear that it is the intention of the Government of TT to access that US$300 million loan from the CAF at some appropriate time, within this fiscal year,” Imbert said. Saying reports of Government accessing this loan last year were wrong, Imbert said that was impossible because “to actually access that loan we have to pass this law.” He said one of the benefits in being a full member of the CAF is that TT would receive a “lot of advice and help that you get from them, in looking at projects and determining the feasibility of projects.” Imbert reminded senators that the 2016/2017 Budget’s expenditure was $52 billion, projected revenue was $46 billion and this left a projected deficit of $6 billion.

He reiterated that the Government has publicly said the deficit will be financed partially by withdrawal from the Heritage and Stabilisation Fund (HSF) and by borrowing.

He also said a benefit of accessing funding in foreign currency is assisting “with our foreign reserves position.” Imbert said the recent withdrawal of US$251 million from the HSF has increased the country’s foreign reserves by that amount and the US$300 million loan would have a similar affect on the foreign reserves.