T&T Heritage/Stablisation Fund stands at US$4B

Max Ottley photo

Trinidad & Tobago's Heritage and Stabilisation Fund is now at US$4 billion.

Finance Minister Winston Dookeran confirmed that to reporters Thursday at the weekly post cabinet briefing. He said the gains have been positive although the returns have been small.

Dookeran said officials are considering a revision of the legislation governing the Fund.

"The idea is, we will look at the performance of the Fund...to determine the extent to which there may be need for revision, both in terms of the formula which as been applied by law, as well as in terms of whether or not there shall be a separation of the Stabilisation from Heritage component of the Fund," he said.

He added that this will be subject for a detailed consultation process conducted by the Central Bank itself.

Dookeran also confirmed recent talks with the Inter-American Development Bank (IDB), the Economic Commission for Latin America and the Caribbean (ECLAC), and other institutions to initiate a regional stock market.

"It was felt that the time has come to open up the region to a new convergence process and the Bank was willing to provide support beyond what they have already done in this regard. We will be engaging institutions like the University of the West Indies and others institutions to work towards that," he said.

The minister added that Trinidad and Tobago has already taken steps to enhance its membership in the Andean Development Bank, which he said is the second most important bank in Latin America for financing development.

Trinidad and Tobago plans to buy additional shares in order in the bank to enhance its standing so that the country can depend on the bank to assist with infrastructure development.

"The benefit for Trinidad and Tobago in this particular venture is that we will now have an additional source of financing at relatively low interest rates in order to help the financing of infrastructure,"Dookeran said.

"The first item on the agenda has to do with the financing that we require to put into place for the development of the Point Fortin San Fernando Highway.

"As you are well aware, so far we have funded that project based on resources that were available to the country in its Consolidated Fund. But we will now look at a longer term arrangement to finance that project," he stated.

Government will have to inject the sum of US$300 million in shares in the bank over the next three years.