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TRINIDAD | Finance Minister clarifies statement issued by Moody’s Investor Service

Trinidad and Tobago's Finance Minister Colm Imbert Trinidad and Tobago's Finance Minister Colm Imbert
PORT OF SPAIN, Trinidad, Jul. 6, CMC – Finance Minister Colm Imbert has sought to clarify a statement issued by Moody’s Investor Service which said the government plans to cut billions of dollars from public salaries this year.

According to Imbert – the Government has absolutely no intention of cutting public sector salaries by TT$3 billion, noting that the international rating’s agency misunderstood the facts.

“The Minister of Finance, Colm Imbert, has taken note of statements made by Moody’s Investor Service (Moody’s) in its Issuer Comment dated June 30th 2017 on the mid-year budget review of the Trinidad and Tobago Government, which was presented on May 10th 2017.”

“This statement by Moody’s has quite naturally caused some concern, but it is clearly a misunderstanding of the facts,” said the Finance minister in a statement on Thursday.

He said the reality is that the Government is no longer faced with the $5 billion plus backpay bill for public officers which it was confronted with in September 2015, since most of this backpay was paid in 2016 and the first half of 2017.

“Accordingly, in the next fiscal year, the Government will not be saddled with this huge liability. Moody’s clearly misconstrued the reference to the absence of a requirement for an allocation of $3 billion in backpay in fiscal 2018 and strangely characterized this reduction in backpay liability as a “cut” in “public salaries”. However, it is not a cut in salaries but rather a natural reduction in the requirement for backpay,” Imbert said.

  • Countries: Trinidad_Tobago