As part of a plan to bolster tax revenue and cushion reductions of subsidies, the Development Bank of Latin America or Corporacion Andina de Fomento (CAF) will provide a grant of US$300 million to Trinidad and Tobago.
Falling energy prices have had a negative impact on the country’s fiscal balance and the “Support Programme for the Medium-Term Fiscal Consolidation” is designed to maintain stability and increase microeconomic efficiency. The loan will strengthen tax revenue in the non-energy sector, among other benefits. CAF expects the loan to complement efforts to increase efficiency of public spending and prompt economic diversification. Minister of Finance Colm Imbert confirmed the loan but terms will be provided “further ahead”, said a representative for CAF.