BUDGET STATEMENT 2014
7
SUSTAINING GROWTH, SECURING PROSPERITY
In the interim, a further extension of
the Shareholders Agreement has been
negotiated.
HINDU CREDIT UNION
Mr. Speaker, turning to the Hindu Credit Union,
we have also made substantial headway in
resolving the payments for the depositors and
shareholders of the Hindu Credit Union.
To date, we have been honouring our
commitment to the 147,707 former HCU
depositors and shareholders whose liability
amount to approximately $668.2 million.
Payments made to the under $75,000
account holders amounted to approximately
$132.3 million. The processing of payments
for the 1,502 eligible HCU depositors and
shareholders with account balances over
$75,000 commenced some time ago. We have
also agreed to create a compassionate relief
window to assist special needy cases.
FINANCIAL SECTOR REGULATION
Mr. Speaker, in the wake of the financial crisis,
there is a compelling case for ensuring that the
financial sector maintains its stability. We must
ensure that the financial sector continues to
play a critical role in enabling economic growth.
Consequently, over the past year, we have
taken steps to strengthen our financial system
infrastructure:
• the Financial Intelligence Unit Act expanded
the capability of the Financial Intelligence
Unit and in November 2012 Trinidad and
Tobago has been removed from the grey list;
• a Securities Act 2012 was implemented
with best practice international standards in
securities’ market regulation. Consequently,
the country has become a signatory to the
Multi-lateralMemorandumofUnderstanding
(MoU) as advanced by the International
Organization of Securities Commissions
(IOSCO). This facilitates exchange of
matter and are now comfortable that the private
partners will deliver the infrastructure and/
or related services in such a manner that the
population at large receives value for money.
The Inter-American Development Bank (IDB),
of which Trinidad and Tobago is a long-standing
member, will advance one PPP project under the
remit of the Ministry of Education comprising
20 Primary Schools and Early Childhood Care
Centres andanother under theMinistryof Health
for a number of Diagnostic Centres. The IDB will
lead the process for the selection and award
of a contract to a transaction advisory service
provider through a competitive and transparent
bidding process. This process will be completed
over the next 12 months.
We have also agreed that the International
Finance Corporation (IFC), of which Trinidad
and Tobago is also a long-standing member, will
spearhead work on the airport concession for
the Piarco International Airport.
CL FINANCIAL
Mr. Speaker, I turn now to the CL Financial
Group. We have developed a comprehensive
strategy for recovering the funds expended by
Government in the recapitalisation, resolution
and restructuring of CLICO, British American
Insurance Company (Trinidad) Limited (BAT),
Caribbean Money Market Brokers Limited
(CMMB) and CLICO Investment Bank (CIB).
The principal element of this strategy will
involve a new Shareholders’Agreement which is
being proposed by the Government of Trinidad
and Tobago to CL Financial Limited. This will
provide the Government with formal collateral
arrangements over the assets of the Group and
a sale strategy which will maximise the value
to be received from these assets to facilitate
the full liquidation of all advances made to
the Group.
The Government has engaged a reputable
firm of international consultants to review the
Plan and make appropriate recommendations.
