VZCZCXRO1108
RR RUEHGR
DE RUEHSP #0405/01 2881606
ZNR UUUUU ZZH
R 151606Z OCT 09
FM AMEMBASSY PORT OF SPAIN
TO RUEHC/SECSTATE WASHDC 0066
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCNCOM/EC CARICOM COLLECTIVE
RUEHRC/USDA FAS WASHDC 0281
RUEHRC/AMEMBASSY ATO CARIBBEAN
RHMCSUU/DEPT OF ENERGY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 02 PORT OF SPAIN 000405 
 
SIPDIS 
 
SANTO DOMINGO FOR REGIONAL COMMERCIAL OFFICE 
JUSTICE FOR OPDAT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EIND TPHY TD
 
SUBJECT: TRINIDAD & TOBAGO ECONOMIC HIGHLIGHTS FOR SEPTEMBER, 2009 
 
Notable economic developments in Trinidad & Tobago in September not 
otherwise reported include: 
 
¶1.  Foreign exchange crisis or not?! 
¶2.  Trinidad and Tobago off credit watch list 
¶3.  TT Eximbank line of credit for exports to Cuba 
¶4.  Inflation/Repo rate continues to fall 
¶5.  Ship building ... way to economic diversification 
¶6.  India to set up weather station 
¶7.  Lack of funds halts InTech Park 
 
¶1.  Foreign exchange crisis or not?! 
------------------------------------ 
The GOTT continues to defend the country's foreign exchange 
position.  Responding to opposition questions on this issue and the 
reason businessmen have been unable to have immediate access to 
foreign exchange, Minister in the Ministry of Finance and Minister 
of Trade and Industry Mariano Browne assured the Senate that "there 
is no foreign exchange crisis" and TT will be able to meet all of 
its trade requirements in the marketplace.  As of May 2009, the 
country's international reserves stood at US$8.9 billion (increasing 
to US$10.2 billion when commercial banks reserves are taken into 
consideration).  Browne admitted that there is a greater demand for 
foreign exchange at this time, but firmly stated that there is no 
shortage.  He said current reserves would allow for 11 months of 
import cover. 
 
¶2. Trinidad and Tobago off credit watch list 
-------------------------------------------- 
Moody's Investors' Services and Standard and Poor's (S&P) expressed 
confidence in the GOTT's ability to manage the economy and any 
projected deficits by maintaining its Baa1 government bond ratings 
in both foreign and local currency and S&P removed T&T from its 
negative credit watch list.  Regional credit rating agency Caribbean 
Information and Credit Rating Service also reaffirmed Trinidad and 
Tobago's AAA rating on local and foreign currency debt obligations. 
 
¶3. TT Eximbank line of credit for exports to Cuba 
--------------------------------------------- ---- 
Trinidad and Tobago Export Import Bank (Eximbank) will establish a 
US$10 million line of credit for the benefit of TT manufacturers to 
facilitate export of goods to Cuba.  Trinidad and Tobago 
Manufacturers Associations' (TTMA) President Greig Laughlin said 
this facility would allow TT manufacturers to be paid up front and 
make their goods competitive.  He believes the TTMA/Eximbank 
strategy comes at an excellent time when the Cuban market is about 
to expand. 
 
¶4. Inflation/Repo rate continues to fall 
---------------------------------------- 
The Central Bank of Trinidad and Tobago (CBTT) reports that headline 
inflation continued to decline, dropping from July's 5.9 percent to 
4.3 percent in August.  However, the Bank warned that the GOTT's 
budget deficit and increased taxes on cigarettes and alcohol could 
snuff out the gains made.  Headline inflation also dropped from 10.1 
percent in July to 5.2 percent on a year-on-year basis in August. 
Core inflation remained unchanged at 3.8 percent.  The continued 
fall of the inflation rate and excess cash in the system, has 
prompted the Bank to further reduce its Repo rate by 50 basis points 
to 6.25 percent.  The next Repo rate announcement is scheduled for 
October 23, 2009. 
 
The full text of the Central bank announcement is posted at 
hppt://www.central-bank.org.tt/. 
 
¶5.  Ship building ... way to economic diversification 
--------------------------------------------- -------- 
Prime Minister Patrick Manning recently announced plans to turn to 
ship building and marine repairs as a way to further diversify the 
local economy.  In line with this, he referred to a private sector 
proposal for the construction of a major dry dock.  Another area of 
interest is the fast growing marine segment of the oil and gas 
exploration.  According to Manning, this industry has the potential 
to be labor intensive and to create a new industry that can make 
significant contribution to TT's economic activity. 
 
¶6.  India to set up weather station 
----------------------------------- 
The Indian High Commission to Trinidad and Tobago promised to assist 
with the establishment of a regional weather station in TT using 
space technology.  India-based scientists are expected to assist in 
setting up the center with footprints throughout the region.  The 
 
PORT OF SP 00000405  002 OF 002 
 
 
center also would focus on renewable wind energy and ocean studies. 
 
 
¶7.  Lack of funds halts InTech Park 
----------------------------------- 
The pressures of the global economic slowdown hit the GOTT US$79 
million Tamana InTech Park.  The proposed 2010 completion date of 
the technology industrial center has been pushed back and the 
project scaled down.  The park, the only one of its kind in the West 
Indies, was intended to assist the GOTT to develop a competitive 
onshore business environment, form the background for a Caribbean 
ICT cluster or business hub, and house the headquarters of the 
University of Trinidad and Tobago.  It is believed that many of the 
intended occupants have pulled out of the project or are unable to 
sign on to any expansion projects at this time. 
 
KUSNITZ