Following the government’s announcement that the Ministry of Finance was able to raise USD$500 million on the international markets through the launch of the Trinidad and Tobago International Bond Issue, line Minister Colm Imbert assures that the money will be put to good use.
Responding to an urgent question posed to him in the Senate today, Imbert said at least half of the money will be used to refinance a bond procured by the former administration.
“The issue date was under the UNC in July of 2000, where the UNC government borrowed USD$250 million,” he announced.
Imbert says the refinancing will save taxpayers hundreds of millions in the long run.
“That bond was attracting interest or required interest at a rate of 9.75 per cent. The Ministry of Finance will be able to refinance that facility at a rate of 4.5 per cent resulting in an annual cost saving to Trinidad and Tobago of $89 million or, over the life of the refinancing, a cost-saving to the country of $890 million,” he said.
The remaining half will be set to support budgetary allocations as mentioned in last year’s presentation and the mid-year review two weeks ago.
Imbert says the bond was oversubscribed by 219 per cent, but the offer book stood at USD$500 million with an interest rate of 4.5 per cent.
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