Published: Wednesday October 1, 2008
Central Bank Governor Ewart Williams said yesterday that the stock market crisis on Wall Street could eventually negatively affect Trinidad and Tobago. He also cautioned that "we should not go along saying that it will not affect us".
He said the US stock market crisis, if not addressed, could have serious implications for Trinidad and Tobago, which he acknowledged was not immune to the economic crisis on the international markets.
"I made the statement recently that our banking system is not directly connected to the international banking system and therefore losses will be manageable and that's still correct," Williams told reporters at the Central Bank in Port of Spain.
"But we are going to be affected through the real economy, because the signs are now ominous that there is going to be slow down in the international economy and we are going to be affected. ... The issue is, do we take steps immediately to improve our (economic) resilience?"
The US$700 billion bailout proposal for Wall Street, which the George Bush administration was seeking to implement, was rejected Monday by the House of Representatives, prompting massive losses on Wall Street.
Earlier this month, Minister in the Ministry of Finance Mariano Browne disclosed that more than 90 per cent of the US$8.5 billion Heritage and Stabilisation Fund (HSF) was being held in deposits in 25 highly ranked US banks, but maintained that it has not been exposed in any way to the stock market crisis on Wall Street.
Source: Trinidad Express Newspapers
http://www.trinidadexpress.com/index.pl/article_business?id=161382277
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