TT Government to Sell Stake in CLICO, Plans to Use Funds to Ease Finances
CLICO Headquarters in Port of Spain, Trinidad
Finance Minister Colm Imbert revealed this intent during the delivery of the TT$59.7 billion national budget to Parliament on Monday. Imbert asserted that CLICO is no longer considered of “strategic importance” to the government, adding that selling its stake in the insurer will generate significant revenue – several billion dollars – that will help the government meet its financial challenges over the next few years.
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“I want to clarify that the debt is still TT$30 billion,” Imbert reminded legislators, stressing that only a portion of the claimed debt has been repaid.
Data shows that in 2009, the government agreed to a CLICO bail-out, with a recovery plan that also included saving CL Financial (the conglomerate’s parent company). The plan entailed selling off assets to settle existing debts.
Cost of Bailing Out CL Financial Group
(TT$ billion) | This Year |
TT$23 | Initial estimate of required funds |
TT$30 | Actual bill for the CL Financial, CLICO and BAICO bailout |
billion |