People who had short-term investments with Colonial Life Insurance Company (Trinidad) Ltd (Clico) and British American Insurance Company Ltd, where the principal balance was $75,000 and over, will have their transactions processed from December 1. The Ministry of Finance, in announcing via notices in today’s daily newspapers that it will begin processing payments from December 1, 2011, to February 27, 2012, going in alphabetical order. The ministry said that cash payments would be made within seven working days of investors’ acceptance of Government’s offer.
To the query about what sort of return can investors expect if investors cash in bonds with maturities of between one year and ten years, the ministry said that given the current government yield curve, it is estimated they would realise 80 per cent of or 80 cents on the dollar. If an investor has a principal balance of, say $300,000, he or she would receive $75,000 in cash, and $225,000 in bonds.
The ministry stated that values payable were independently validated; all foreign currency funds will be paid in TT dollar equivalent; BAT customers in Tobago and San Fernando will be processed at the Clico centres in those areas; cheques will be issued to contract owners or eligible payees if they do not have a local bank account; holders of the Colonial Life Core Fund Series 6 will be processed at a later date. The closing date for applications will be June 30, 2012. The second notice applied to the holders of short-term investment products with Clico and BAT valued at more than $75,000.