REVIEW OF THE ECONOMY 2013
40
SUSTAINING GROWTH, SECURING PROSPERITY
Proceeds of the bond issues were utilised for
the capitalisation of the CLICO Investment Fund
(CIF). During the year, a total of $3,646.8 million
of the 11-20 year portion of the Zero Coupon
bond series issued in December 2011 under the
Purchase of Certain Rights and Validation Act
#17 was exchanged for units in the CIF, resulting
in a reduced balance of $5,725.5million on these
Zero Coupon Issues. Also contributing to the
increase in Central Government Domestic Debt
was a US$4.6 million, 3.75 percent loan facility,
due 2017 for the local financing component of
the procurement of a digital communication
system for the Trinidad and Tobago Police
Service (TTPS).
The Central Government External Debt,
accounting for 24.2 percent of Net Public Sector
Debt, is projected to rise by 0.1 percent or
$11,181.4 million. The relatively minimal increase
is consequent upon disbursements on new and
existing loans being offset by repayments on
existing loans.
During the year, four (4) new external loans were
contracted, namely: GORTT US$26.3 million,
2.42 percent, due 2022, representing the foreign
financing component for the procurement
of the digital communication system for the
TTPS. Other external loans contracted by the
Central Government during the year included: a
year. However, the external component of Net
Public Sector Debt is projected to contract by
$126.7 million or 1.0 percent.
By the end of the current fiscal year, Central
Government Debt; comprising both foreign and
domestic components; is expected to rise by 5.2
percent to $43,718.3 million or 26.5 percent of
GDP, while Contingent Liabilities or Government
Guaranteed Debt is projected to increase by 9.5
percent to $30,198.5 million or 18.3 percent of
GDP. By the end of September 2013, Central
Government Debt is anticipated to comprise
59.1 percent of Net Public Sector Debt with 40.9
percent attributed to Contingent Liabilities.
Central Government Debt
The 5.2 percent increase in Central Government
Debt during fiscal 2013, is largely attributable
to the domestic component which accounts
for 75.0 percent of Net Public Sector Debt.
Accordingly, Central Government Domestic
Debt is anticipated to rise by $2,222.1 million
or 7.3 percent by the end of fiscal 2013. This
increase is primarily due to the issuance, in
October 2012, by the Government of a $5,100
million, fixed rate bond due 2032/2037, and
issued in two tranches: Tranche I $4,397.1
million,4.20 percent, due 2032; and Tranche
II $702.9 million, 4.25 percent, due 2037.
Figure 13:
Public Sector Debt and Debt Servicing
Source: Ministry of Finance and the Economy
CENTRAL GOVERNMENT OPERATIONS
