The Caribbean Investment and Finance Forum–which the T&T International Financial Centre (TTIFC) is co-hosting with Latin Finance–will help to promote T&T as a leading financial centre and a place to do business, says Varun Maharaj, CEO of the TTIFC.
"This is a step in the further diversification of T&T's economy. This would be T&T's two days in the sun and the spotlight for all the top investment bankers and other financial professionals visiting T&T. T&T has the most developed capital market in the Caribbean. A good example is over the last decade, T&T has been the source of capital for the Government and corporates around the region to the tune of US$12 billion. This is the sum governments have been able to raise out of T&T's capitals markets," he told the Business Guardian on Monday.
The conference will take place from March 4-5 at the Hyatt Regency hotel, Port-of-Spain.
According to the TTIFC's Web site, the 2015 Caribbean Investment & Finance Forum will place regional public and private sector leaders on the stage alongside international investors and thought-leaders. It is an important opportunity to address the difficult questions and the sensitive issues, to search for real-world solutions, and to meaningfully drive forward the regional agenda.?
"This conference is a culmination of marketing strategy that we have pursued over the last 12 months to showcase T&T as an emerging international financial centre. Prior to this event in March, we have had round tables and other discussions in New York, Toronto, London, Beijing and Dubai. So, coming out of those round tables, there has been heightened awareness of T&T and its role in global finance and after Latin Finance agreed with us to put on this conference," Maharaj said.
He said the forum used to be held every year from 2000 to 2008 in the Caribbean but, in 2008, following the international financial crisis, the conference was not held.
"Latin Finance said they should be looking at what is happening in T&T. We engaged them in discussions and they agreed to come back to the Caribbean and have this conference, with us partnering with them," he said.
Maharaj spoke to the Business Guardian at its office, Level 15, Tower D, International Financial Centre, Port-of-Spain.
There would also be investment bankers from the major money centres around the world participating.
"We interacted with them in New York and all the other cities mentioned above. So they have an awareness with regard to what is happening in T&T. By coming here, they would experience T&T and see the business culture and all other things that go with it. They would have a proof of concept of T&T and what it offers."
Benefits of conference
Maharaj said participants would be able to make and build other contacts at the forum.
"Each participant can express the view upon registering whether they want one-on-one meetings and their interest area. Latin Finance will facilitate one-on-one meetings.
"One of the main benefits of hosting the conference in T&T is it relates to finance and capital investment. There will be heads of government and ministers of finance all coming to the forum. They may have an interest in infrastructure finance in their country. So they may meet an investment banker from Morgan Stanley or from HSBC; those meetings will be arranged. It is not just a talk shop."
He said a major theme of the conference is infrastructure and its financing which involves financing roads, buildings and other projects.
"This is how it can be used as a platform to impact on the competitiveness of member states of the Caribbean. So there will be the investment bankers and there will be the ministers of finance and local financial institutions participating. Coming out of the discussions there will be a round table on infrastructure financing. Ideas will come out."
He said another theme will be the leveraging of other capital markets and the Caribbean capital markets to streamline trade and investment in the region. This involves attracting more foreign investment into the region.
Another aspect of the conference is financing oil and gas.
"This would be about the opportunities that exist there. Really what are the implications coming out of that for energy in the region and economic security."
The conference will also look at public finance and management in the light of economic growth and the growing indebtedness of most of the Caribbean countries.
He also referred to former Barbados Prime Minister Owen Arthur–an economist–who spoke at the University of the West Indies (UWI) last week about a "lack of fiscal space" in Caribbean economies.
"Arthur is an economist and a politician and, in addition to having people like that at the forum, there will be investment bankers who have had experience in other parts of the world with similar experiences. They will bring their experience to bear on the discussion."
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Diversification
Maharaj said through different initiatives of the TTIFC over the last few months, the organisation has been able to increase the contribution of financial services sector to the gross domestic product (GDP).
"Its contribution is close to 15 per cent now. But we have a long way to go. That figure can grow exponentially if we are able to put in place some of the initiatives that we are pursuing. The sector also contributes close to 60,000 jobs."
One of the main initiatives is the IFC legislation which they hope to present to Cabinet.
"We want to create a unique environment and first-class legislation to attract international firms to come to set up shop here. We are the financial capital of the Caribbean but, through this forum and other initiatives and the legislation, we want T&T to lead not only in the region but internationally as a capital market," he said.
He said once the legislation is completed, T&T would be one of the three financial centres in the world with such a structure.
"The legislation has been completely drafted after meeting with key stakeholders. It is right now awaiting the green light to be presented to the Cabinet. That legislation creates a structure similar to Singapore and Dubai. Basically, there will be a business development arm, dispute relation centre and also a financial services authority. So anyone coming to do business under the ambit of the TTIFC will operate under the rules and laws that exist."
One of the main things the new financial structure will do is reduce bureaucracy which leads to a lot of inefficiency in T&T.
"There are also questions about transparency, data protection laws, cyber security and money laundering. Under this suite of laws there will be quick resolution of issues. Should there be disputes in contracts, we assume it will be resolved in 90 days. Do you know how long it takes a complex contract to be resolved in T&T? Maybe it takes 1,200 days to be resolved."
Maharaj hopes the legislation gets Cabinet's blessings and goes to Parliament in the first quarter of 2015.
"We worked assiduously to put it together. We have looked at IFC's from Australia, Dubai, London and going back to New York. We believe we will be the only ones in this hemisphere with such a legislation."
He said the downfall in energy prices, which have impacted on Government revenues and the entire economy, has not affected investors' confidence.
He did add that all investors remain "cautious."
"When you go back to the financial meltdown of 2008, Dubai already had their financial centre and there was this significant downturn but they realised they were on a course of economic diversification as they were only four to five years into their IFC. They realised if they had halted the IFC project and had to restart, they could have thrown themselves ten years back. The lesson for T&T is: if a country is on a course of economic diversification, it is important to pursue it despite prevailing economic challenges."
He said if diversification of the economy is not pursued with "vigour" then T&T will be at a standstill.
"It will be stop and start and the economy will go no where."
He estimates once the legislation is put in place and more financial investors come in, the TTIFC can contribute TT $7 billion per annum to GDP.
Right now, the TTIFC is working with UTT to create an institute of finance which will provide training for professionals already in the industry as well as those wishing to get in.
"We want to keep professionals on the cutting edge. We have partnered with two globally renowned institutes–the New York Institute of Finance and the Chartered Institute of Securities and Investment based in the UK."
He predicts that once all the initiatives are completed, T&T will be one of the top financial centres globally.
"Once we put everything in place, T&T will be a different place in five years time."