Now this is just my opnion, throught observations..and i eh ave no fact to back it up.
It seems to me that our government just reacts to situations and tries to fix them after the fact.
I argee that this is necessary but whjat i am getting at is that thye dont seem to be really good at predicting.
Financial people have been crying about the infaltion rate for years now..btu it only seems that they government is making any effort after it is a problem.
Highway and road problem is another example
i eh even wah tlka baout crime.
I wonder if countries that ahve a more stable economy and government and system(eg. scandanavian countries) look fwd..
just my opnion
Cabinet is banking on the issue of $2.5 billion in Government bonds to help reduce the country's 9.6 per cent rate of inflation before the end of the year.
During the post-Cabinet news conference at Whitehall, Port of Spain, yesterday, Minister in the Ministry of Finance Conrad Enill said: "In so far as inflation management was concerned, Cabinet took the decision to approve the issue of a series of short- to medium-term bonds to be made available to the market to the sum of $2.5 billion, the first tranche to be $700 million with an eight-year tenure," Enill said.
"This has come about as a result of discussions with the Central Bank of Trinidad and Tobago and the Ministry of Finance about the levels of liquidity within the system and the resulting effect that this was having on fuelling inflation."
"Another issue is a window for individuals and smaller companies and institutions by way of a non-competitive bid in the amounts of $1,000. Of course, the major bond issue will be done through the auction system that we have established," Enill said.
"It is expected that the bonds in tandem with the short-term treasury notes and issues would help to absorb excess liquidity in the system and in addition would contribute further to the development of the domestic capital market. This is an intervention we believe the market place has been waiting on and we expect that it will provide us with the relief we are looking for."
He said the first $700 million tranche of the new bond issues will be floated "presumably" before the end of this month.
Asked how soon after the bond issue did Government anticipate a reduction in the inflation rate, Enill said: "Almost immediately. Well, according to the last report I saw from the Central Bank, it says that consumer spending was starting to trend downwards which was one of the issues we had and, therefore, we believe we have evidence, that some of the things we are doing is in fact reducing some of the pressure," he said.
$2.5b in bonds to reduce inflation
$700m tranche at month's end
Juhel Browne jbrowne@trinidadexpress.com
Friday, November 17th 2006
