The bank made the statement in response to a letter from Attorney Ramesh Lawrence Maharaj, who is representing some Clico policy holders and is threatening legal action if the bank fails to honour a commitment to pay.
More than a month ago Maharaj wrote the bank giving it a seven-day period in which to respond or face legal action.
However the CBTT has stated that at no time over the past 21 months did it give guarantees of payments and therefore Maharaj's legal claim should not be made.
The Bank stated in ads ad that it was not reasonable for policyholders to have interpreted statements of the Bank, ‘as constituting a clear and unambiguous representation,’ that all policy contracts would be honoured in accordance with the full terms and conditions.
"Rather, the Bank, working together with the Government of T&T (GORTT), was seeking to assure that, in the developing situation, the Clico policyholders would have been offered the best possible protection, subject to reasonable public policy constraints," the CBTT said.
"The Bank was not able in law to give any binding assurance of the nature claimed, since the bank had no power to provide financial assistance to Clico, but was conveying and supporting the financial resolution strategy of the GORTT, in the best interest of the policyholders," it added.
It noted that that under section 44F (5) and 44D of the Central Bank Act, the bank may be given instructions by the Minister of Finance and would comply to those instructions.
In that context the CBTT said it considers the Clico proposal outlined in the 2011 budget by Minister of Finance Winston Dookeran “to be an offer of an option of financial assistance to policyholders which is not inconsistent with the bank’s efforts to find an acceptable solution in the changed circumstances.”
Therefore it said it cannot answer the allegations that GORTT failed to consult with the policyholders in formulating this proposal, but notes the recent discussions between policyholders’ representatives and an appointed team of Government ministers.
The Trinidad and Tobago government has offered to pay Clico investors $75,000 with any outstanding balances to be paid in equal instalments over a 20-year period at no interest. Policyholders and investors have rejected that.
Prime Minister Kamla Persad-Bissessar has appointed a committee to meet with stakeholders to find a compromises. The team, led by Food production Minister Vasant Bharath has received recommendations for altewrnative plans and submitted them to cabinet for consideration.
However, Persad-Bissessar has made it clear that any funds to be paid will have to come from the taxpayers and she has a responsibility to be accounatble to them.
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