Last update: 09-Dec-2013 11:54 pm
Tuesday, December 10, 2013
Trinidad & Tobago Guardian Online
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Finance Ministry: Govt late with bond payment
The Ministry of Finance yesterday confirmed that the Government missed the August 17 interest payment on the $500 million Housing Development Corporation (HDC) bond due 2024. A ministry source said yesterday that the missed interest payment was due to an “administrative delay between the Ministries of Housing and Finance” and not as a result of T&T’s inability to meet its debt commitments.
The administrative problem was sorted out yesterday, five days after the monies should have been in investors’ accounts, said the ministry source. Arrangements were made for the payments to be disbused during the course of today. The 15-year HDC bond was issued at par in February 17, 2009, giving investors a yield to maturity of 8.25 per cent, according to information on the results of the bond issue on the Central Bank’s Web site.
This means that the interest payments would amount to about $20.62 million every February and August until 2024. Asked whether the missed payment was considered to be a default, the Ministry of Finance source said: “I don’t have the details with me but there’s usually a grace period before a demand is made. “As you know a default would only occur on inability to meet demand for payment and I don’t think any of the investors would have any concerns about that.”
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