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International Monetary Fund

, CLICO (Trinidad) which had assets of US$2.9 billion at end-2008 (11 percent of Trinidad and Tobago’s GDP). The conglomerate’s enormous size may have contributed to a sense of security by policy holders. Chart 1. CL Financial Organizational Structure, 2007 Note: * represents Associates and Joint Venture Companies Source : CL Financial Annual Report 2007 and http://www.cltinancial.com Precursors to the Collapse 4. As CLF expanded into other sectors, a key source of financing for its expansion particularly after 2004 was the offer of deposit

International Monetary Fund
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.
International Monetary Fund
Mr. Hunter K Monroe

Freight Methanol Prices of Major Exporters Source: Bloomberg L.P. Figure 12.4 Florida Real Estate Price Index Source: Standard & Poor’s. The Trinidad and Tobago authorities intervened in CLF in January 2009 and announced a financial support package for three domestic subsidiaries: CLICO Trinidad, British American Trinidad, and CLICO Investment Bank. In the announcement, the CBTT identified the key factors leading to the intervention as excessive related-party transactions, which carry significant contagion risks; an aggressive high

International Monetary Fund

percent in Trinidad and Tobago and 10 percent of GDP in ECCU countries. Exposures to BAICO and CLICO: ECCU and Barbados (2012, percent of GDP) Sources: ECCU country authorities. The resolutions of CLICO and BAICO are still ongoing and strategies have differed among countries . In jurisdictions with small exposures (Bahamas, Belize, Guyana, Suriname), the failed companies were either liquidated or sold. In countries with larger exposures: (i) CLICO Trinidad and Tobago has recently been resolved, with long-term bonds issued by the government of Trinidad

International Monetary Fund
This paper presents background on Caribbean small states as context for the main paper, “Macroeconomic Issues in Small States and Implications for Fund Engagement.” It draws on recent analytical work presented at a conference for policy makers in September 2012, in Trinidad and Tobago. Caribbean small states, while sharing many features of other small states (size-related macroeconomic vulnerabilities, lack of economies of scale, and capacity constraints) have specific characteristics which merit attention
International Monetary Fund

Caribbean region’s GDP. It has majority ownership of the largest commercial bank and owns the largest insurance company CLICO (Trinidad) in Trinidad and Tobago, with assets of US$2.9 billion at end-2008 (11 percent of Trinidad and Tobago’s GDP). The collapse of the group and especially the insurance arms 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 ECCU), leading to costly government interventions. The group’s assets rapidly expanded in recent years through costly sources of

International Monetary Fund

taken over by a local insurance company . Self Reliance Insurance, a company in which the government has a 40 percent stake, took over the operations of CLICO-Suriname, backed by a loan from the government of US$16 million (0.4 percent of 2010 GDP). This loan is non-interest bearing and could be converted into equity, should Self Reliance’s efforts to recover its investments in CLICO-Bahamas and CLICO-Trinidad-and-Tobago prove futile. The annuities of CLICO-Suriname were restructured by lowering the interest rate and extending maturities . About 80 percent of

International Monetary Fund
The economic slowdown as a result of the global crisis has been severe, and the recovery has not yet taken hold. Despite ample buffers, including large fiscal space and strong international reserves, the policy response to the crisis has been constrained. Inflation has resurfaced as a concern after falling to a historical low in 2009, but the data are misleading. The monetary policy stance has been generally supportive but ineffective in the context of large excess liquidity. Medium-term growth prospects depend on the energy sector outlook.
International Monetary Fund
In this paper, the economic growth of Suriname is discussed. The fiscal deficit shifted from 2.2 percent to 3.3 percent of GDP during 2009–10. In 2010, CLICO-Suriname was acquired by a local insurance company. The need to rein in current expenditure and avoid development of wage–price inflation and strengthen the social support programs are stressed by the authorities. The introduction of VAT and other systems are discussed. Finally, improvement over the business environment to facilitate the development of the private sector and global economy was encouraged.