REVIEW OF THE ECONOMY 2013
41
SUSTAINING GROWTH, SECURING PROSPERITY
US$64.2 million at a tenor of 10.5-months and
a variable interest rate of 6-month LIBOR plus
3.29 percent per annum to meet outstanding
liabilities of Caribbean Airlines Limited (CAL). A
$250 million 20-year 6.25 percent facility was
also issued by the National Insurance Property
Development Company Limited (NIPDEC) on
behalf of the Programme for the Upgrade of
Road Efficiency (PURE). It is anticipated that
before the end of fiscal 2013, a $1,000 million
Bond will be issued by NIPDEC in respect of
PURE.
Over the fiscal year, two Letters of Guarantee
in respect of the Sports Company of Trinidad
and Tobago (SPORTT) LIFE-sport Programme
were issued. These two (2) short-term facilities
were issued for $77.2 million at an interest rate
of 3.60 percent and $76.9 million at a rate of
2.50 percent. The issuance of a $213 million
8-year, 3.35 percent bond, by UDeCOTT, on
October 29, 2012, further contributed to the
increase in Letters of Guarantee. The bond was
raised to refinance outstanding liabilities of the
Corporation. Also added to State Enterprises
debt stock during fiscal 2013 was a $1,012.3
million increase in respect of the Government
Campus Plaza project. This increased principal
represented capitalised interest on the original
Bridge Loan Facility of $2,400 million, bringing
the total debt in respect of the facility to
approximately $3,412.3 million.
Letters of Guarantee issued to Statutory
Authorities increased by 53.3 percent or $713.2
million to $2,050.9 million, as a result of the
issuance of Letters of Guarantee in respect
of borrowings by the Airports Authority of
Trinidad and Tobago (AATT) ($44.4 million
5-year, 3.95 percent) for development works
at the Piarco and ANR International Airports;
by the Housing Development Company (HDC)
($500 million 6-month, 1.75 percent Bridge
Facility) to finance the Corporation’s Housing
Development Programme; and by the National
Carnival Commission (NCC) ($27.8 million
1-year, 3.60 percent) to finance expenditure
990 million Renminbi, 2 percent, Concessional
Facility due 2033, for the construction of the
Couva Children’s Hospital; a US$85 million,
3.0 percent, Preferential Buyers Credit Facility
due 2028, for the construction of six Sporting
Facilities; and a €33.8 million variable interest
rate Export Credit Facility, due 2022, for
the completion of the extension of the San
Fernando General Hospital at Chancery Lane,
San Fernando.
Contingent Liabilities
At the end of fiscal 2013, Contingent Liabilities,
comprisingbothLettersofGuarantee issuedand
new Government Guaranteed debt is expected
to rise by 9.5 percent or $2,610.3 million. This
increase is principally due to the increase in
Letters of Guarantees (formerly Letters of
Comfort) by 58.9 percent to $9,988.2 million.
Over the period, there were no conversions of
Letters of Guarantee toGovernment Guaranteed
Debt.
An increase of $2,988.9 million or 60.4 percent
was recorded for Letters of Guarantee issued by
the Government in respect of State Enterprises
for the period under review.
Letters of Guarantee issued during the fiscal
year included: a $495.9 million 17-year 3.80
percent facility issued by the Sports Company of
Trinidad and Tobago Limited (SPORTT) for the
development of nine (9) regional recreational
facilities; a $179.7 million 1-year 1.50 percent
facility and a $399.0 million 8-year 1.95 percent
facility issued by the Urban Development
Corporation of Trinidad and Tobago (UDeCOTT)
to finance costs related to the adaptation of the
former Chancery Lane Office Complex as an
extension of the San Fernando General Hospital;
and a $223.1 million 9-year 1.95 percent facility,
issued by UDeCOTT, to liquidate short-term
liabilities in respect of the Real Springs Housing
Development Project.
Also contributing to the increase in Letters
of Guarantee were borrowings in the sum of
CENTRAL GOVERNMENT OPERATIONS
