Caption: Assistant Secretary General of the Sanatan Dharma Maha Sabha (SDMS) Dinesh Rambally, left, with SDMS Secretary General Vijay Maharaj, second left, Prime Minister Stuart Young and SDMS Executive Member Dr Bhushan Singh, right, on Thursday following Young’s interview with Radio and TV Jaagriti
By Sue-Ann Wayow
SMALL and medium-sized businesses should now be able to access up to US$50,000 if needed.
Prime Minister Stuart Young said on Thursday evening that the Cabinet took a decision earlier that day to introduce through the EximBank, the opportunity for qualified businesses to obtain a more substantiable amount of foreign exchange.
Young was speaking during a one-on-one interview with Assistant Secretary General of the Sanatan Dharma Maha Sabha Dinesh Rambally that was aired on Radio and TV Jaagriti.
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He said on Friday, further details will be given by the Ministry of Finance.
However, in response to the question asked by Rambally concerning government’s plans to increase foreign exchange, Young replied that he would give a “precursor” to the announcement.
He said, “I guess I could give a precursor that we are introducing through the Eximbank for small and medium-sized enterprises for SMEs.
We are introducing an allocation to make it a certain amount of foreign exchange up to US$50,000 for businesses that qualify in addition to what your commercial banks may give you.”
The prime minister admitted that the level of foreign exchange had dropped considerably and a report was produced which government officials were looking at.
The decision comes after meetings with banks and consultation with the Minister of Finance.
He also said government will be dealing with as a priority for the average person to be able to get the foreign exchange needed for vacations, sending money abroad for children and other reasons.
“We are focusing on it and there is a different way of thinking about it. We are being very solution oriented but under the constraints of what we have. We can’t give what we don’t have,” Young said.
According to Eximbank’s website the bank is the only official Export Credit Agency (ECA) in Trinidad and Tobago.
“We are the preferred option for Export Financing with a core focus on developing the export potential of Trinidad and Tobago as a mechanism to diversify the economy and increase non-energy Fx earnings,” the bank’s website states.
Rambally also asked how did Young come up with a TT $15 to US$1 figure if the TT dollar was to be devalued.
Young replied the ratio was decided upon after discussions with the Ministry of Finance and economists.
He repeated that there was no way no way, government could afford a 10% wage increase to public sector workers without having to run to the International Monetary Fund (IMF).
Young said the People’s National Movement (PNM) policy was to defend the TT dollar and maintain its value at roughly TT$6.80 to US$1.
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He explained, “The $15 to $1 is because the float that they see to be able to go in that area is between a minimum of $12 and a high of $18 so you are looking at a midpoint of $15.
Once you float, it completely loses control, you no longer have any control to bring it back down.”
The Prime Minister also reiterated that his political opponents election promises of cutting of taxes and increased wages was not going to auger well for the Trinidad and Tobago economy.
