In this study, the economic developments and policy responses of Trinidad and Tobago after the crisis is reviewed. Policy recommendations are used to strengthen the legal and regulatory framework. According to the IMF’s financial system stability assessment (FSSA), there were critical gaps in the overall legal, regulatory, and supervisory structure for the insurance sector. The quality of insurance sector supervision can be assessed against internationally accepted established “core principles.” In this paper, an overview is presented of why the crisis occurred and some suggestions on how to prevent a future crisis.
commercial banks. A new insurance company, focusing on traditional insurance business, will soon be formed. This new company is projected to become profitable after just one year of operation. The Government is also seeking to reclaim monies which it provided to subsidiaries of CLFinancialLimited and will do so in a manner consistent with the Memorandum of Understanding.
14. Financial sector reforms continue apace. Procedures are now in place to allow the Central Bank to levy administrative fines and the regulators are contemplating revisions to the Financial
, World Shale Gas Resources: An Initial Assessment of 14 Regions Outside the United States , April .
Prepared by Machiko Narita and Judith Gold.
Train 4 was the largest in the world until May 2011, when Qatar brought a larger train on line.
National Enterprises Ltd (NEL), a government holding company, owns 51 percent of Trinidad Nitrogen Company Ltd Plants I & II, which produce ammonia.
The largest producer of methanol is Methanol Holdings (Trinidad) Limited (MHTL), which is owned by CLFinancialLimited in partnership with
I. C ollapse of CL F inancial and G overnment I ntervention 1
1. The January 2009 collapse of Trinidad and Tobago-based CLFinancialLimited (CLF) and related companies has represented a major financial shock to the Caribbean, which was already reeling from the global crisis . The collapse has had spillover effects in all 15 CARICOM states except for Jamaica and Haiti, with exposures as high as 17 percent of GDP in the Eastern Caribbean, leading to costly government interventions. CLF’s insurance subsidiaries, the Colonial Life
: Country authorities; and IMF staff estimates.
The January 2009 collapse of Trinidad and Tobago–based CLFinancialLimited (CLF) and related companies caused a major financial shock throughout the Caribbean, but hit the OECS/ECCU region hardest. The collapse has had spillover effects throughout the entire Caribbean (the 15 Caribbean Community states) except in Jamaica and Haiti, leading to costly government interventions, with the highest gross exposure at 15 percent of 2009 GDP in the OECS/ECCU region. CLF’s insurance subsidiaries, the Colonial Life Insurance
This Selected Issues Paper focuses on the Heritage and Stabilization Fund (HSF) and development in the energy sector in Trinidad and Tobago. The HSF, established in 2007, is an important national asset, which has broad-based political and social support. The HSF has developed a strong record since its creation. It has performed well as measured by the accumulation of savings, the portfolio return, and adherence to the Santiago Principles for transparency and governance. This is particularly commendable given global and domestic financial crises.
the creation of a regional supervisory body. Effective supervision also calls for the consolidation of the sector to allow improved oversight and to strengthen performance.
The Insurance Sector and the Collapse of CL Financial
Another part of the financial system well developed in the OECS/ECCU is the insurance sector. At end-2010, the OECS/ECCU had some 161 registered insurance entities. Several regional firms based in Trinidad and Tobago and Barbados have notable market shares. The 2009 collapse of Trinidad and Tobago–based CLFinancialLimited (CLF) and
This 2011 Article IV Consultation highlights that the economy of Trinidad and Tobago is turning the corner, and growth is expected to resume in 2012 after an extended slowdown lasting three years. Real economic activity is expected to increase by 1.7 percent in 2012 as the nonenergy sector picks up momentum with the acceleration of government investment. Executive Directors have welcomed the signs of economic recovery following a prolonged slowdown, and commended the authorities for implementing supportive policies, aided by ample buffers, which had helped maintain stability.
Mr. Sanjaya P Panth, Mr. Paul Cashin, and Mr. W. A Bauer
The Caribbean has made substantial progress in recent years in implementing economic reforms, both at the national and regional level. The Caribbean: Enhancing Economic Integration examines the product of the efforts made by Caribbean policymakers to strengthen regional cooperation and integration, which has yielded economic transformation and tighter integration with the global economy. This volume discusses regional financial integration as a means of deepening financial systems and raising regional growth; the relationship between tax incentives and investment, where harmonized regional action is important in seeking to overcome collective actions problems; and the consequences for the Caribbean of the erosion of trade preferences in key export markets. The book is based on empirical research carried out as part of the IMF's regional surveillance work in the Caribbean.