Loans to hoteliers in Tobago have and will continue to be provided based on their credit worthiness, Larry Nath, president of the Bankers Association of T&T (BATT) said in response to concerns expressed by members of the Tobago Hotel and Tourism Association.
"From the outset, the banks made it clear that the lending/restructuring decision would be based on the credit worthiness of the proposal and not merely the existence of a guarantee (partial). The arrangement for the Tobago Tourism Business Loan Restructuring Plan is governed by an agreement among the banks and the Trinidad and Tobago Tourism Business Development Company Ltd (TTBDL) that was signed in March 2013," he said.
Two weeks ago, Carol Birchwood-James, vice president of the Tobago Hotel and Tourism Association complained that hoteliers on the island were being denied access to bank loans and that is adding to an already bad economic situation."There is supposed to be a facility to help refurbish and restructure debts but the banks are saying they need more information from the Government and more paperwork," she had told the T&T Guardian.
Information from BATT shows that banks have received a total of 30 financing requests of which eight were approved, ten declined and 12 are still being processed awaiting additional information.Nath said early in the talks among all the stakeholders, and prior to conclusion of the agreement, it was agreed by all that relevant supporting documents–business case, projections etc.–will be provided to assess the feasibility of applications, and that approvals will be in accordance with the relevant regulatory guidelines.
The Tobago Chamber and the Tobago Hotel Association agreed to engage their members and sensitise them accordingly."The main features of the agreement revolve around the restructuring of existing facilities and/or the extension of additional facilities to eligible businesses in the tourism sector. Guarantees ranging from 50 per cent(for restructured amounts) to 100 per cent (on new funds) are available through the Fund," Nath said.
Meetings have been held with the Tobago Chamber of Commerce and individual banks and also between BATT and the TTBDL to clarify issues arising,