The recent announcements by the Minister of Finance, Winston Dookeran that all EFPA policyholders will now receive only $75,000 initially and the balance of their principal over 20 years at zero per cent interest is at significant variance with the earlier guarantees and assurances of the Central Bank and the Government.
As a consequence, the credibility and image of the Government of the Republic of T&T and its Central Bank are now in serious jeopardy-not only to the citizens of T&T but to the world at large and investors internationally. If the T&T Government goes ahead with its plan to dishonour its past assurances and guarantees of the previous Government and the Central Bank-which investors relied on and used in good faith to conduct their decisions-no investor going forward will trust that the rules will not be changed at any time.
In fact, the A grade and stable outlook sovereign credit rating which this country recently received from Standards and Poors, although indicative of the Government's capacity to repay its debts, will be rendered meaningless to foreign investors like myself because no one will be able to trust or rely on the word of Central Bank or the Government."
Peter Permell
Chairman
Clico Policyholders Group