Home' Trinidad and Tobago Guardian : June 29th 2017 Contents year 2016/2017 whilst natural gas
production slowed (falling from
3.31 bcf/d in Q1 of FY 2016/2017
to 3.29 bcf/d in Q2 of the same
Between the end of March-early
April 2017, both Moody's Investors
Service (Moody's) and Standard
and Poor's (S&P) were in T&T fi-
nalising their annual assessment
of elements critical to the sover-
eign credit rating of T&T.
Though these reports were offi-
cially published in April 2017, there
was much informed discourse that
pointed to the looming prospect
of a further downgrade.
Key determinants for this pend-
ing downgrade were: rising public
debt to GDP ratios, declining en-
ergy revenues coupled with low
investments and insufficient gov-
ernment policy response to tackle
Table 2 shows T&T's credit rat-
ing relative to two other markets as
at April 2017. The next issue will
elaborate more on this.
Prior to March 2017, the Herit-
age and Stabilisation Fund (HSF)
stood at US$5.695 billion.
After the latest withdrawal by
the Government of US$251 mil-
lion (at the time of writing), there
was a remainder of US$5.44 billion
(March 16, 2017).
These funds were withdrawn
with the intent of financing part
of the capital expenditure for the
current budgetary period.
Moody's has described this
withdrawal decision as a "credit
negative because it reflects a de-
teriorating fiscal position driven
by large fiscal deficits amid lower
energy-related government rev-
Furthermore, there exists a
heritage portion to T&T's HSF,
frequent drawdowns from this
fund will impact on the future
Greater fiscal discipline must
be maintained and should be
supported by an appropriate fiscal
framework and fiscal rules.
According to the mid-year
Budget Review 2017, the Gov-
ernment has been taking the
necessary steps to segregate the
heritage and stabilisation aspects
of the HSF.
The T&T Chamber looks for-
ward to the speedy amendment
to this critical piece of legisla-
tion, although we recognise that
stabilisation funds cannot replace
sound fiscal management.
JUNE 29 • 2017 guardian.co.tt BUSINESS GUARDIAN
COMMENTARY | BG17
S&P: Don't be so Moody
The fourth issue of the
National Scorecard of
the T&T Chamber of
Industry and Com-
merce (T&T Cham-
ber) covers the second
quarter of fiscal year 2016/2017 (Jan-
This edition is characterised by an
environment of depressed revenues
and growing recurrent expenditures.
It focuses on two key areas during the
quarter: credit ratings and the Heritage
and Stabilisation Fund.
Before reporting on these specific ar-
eas, the information below is present-
ed as an update on selected fiscal and
monetary indicators and energy prices
Selected fiscal and
• Inflation: (June 2017)
• Headline inflation: 2.8% (-0.1%
from Nov 2016)
• Core Inflation: 2.6% (+0.5% from
• Food Inflation: 6.4% (-2.7% from
• Unemployment: 4.0% (-0.4 from
• Net Debt to GDP Ratio: 61.1% (Mar
• Real GDP Growth: -2.3 (2016)
The West Texas Intermediate (WTI)
crude oil price averaged at US$51.83/
bbl for Q2 of FY 2016-2017. When com-
pared to the last quarter's prices, there
was a slight uptick by US$2.66/bbl.
Henry Hub natural gas prices re-
mained unchanged from last quarter,
standing at US$3.00/mmbtu.
Production in crude oil also increased
slightly on average, rising to 74,289
(bpd) from 72,020 (bpd) in Q1 of fiscal
National Scorecard: Q2 FY 2016/2017
The Receiver of commercial property owned by Anron Limited is
offering it for sale as follows:
Land Tenure - Freehold
- 12,559 sq. ft. (approximately)
- No. A1 Chotoo Road, El Socorro, San Juan
Conditions of Sale
1. Terms of payment are 10% down on acceptance of offer with
balance in ninety (90) days.
2. The Property would be sold on an "As Is Where Is" basis subject
to all outstanding Rates,Taxes and other outgoings.
3. The Receiver does not bind himself to accept the highest or
To obtain a site visit please contact:
Mr. Varune Mungal
c/o Business Recovery and Advisory Services Limited
86, Seventh Street, Barataria
Links Archive June 28th 2017 June 30th 2017 Navigation Previous Page Next Page