CL Financial bailout – the EFPA Details, part one

CL Financial bailout – the EFPA Details, part one

Declaration

I was a Director of the Trinidad Building & Loan Association (1999-2013) when that organisation purchased EFPA investments and also when those sums were recovered during the bailout via the issue of 20-year bonds.

On Thursday, 22nd March 2018, the Ministry of Finance & The Economy, sent details of EFPA payments (in partial satisfaction of the Appeal Court’s Consent Order of 24th January 2018) under cover of a transmittal letter from the Office of the Chief State Solicitor.

The details provided are for payments of $10.8 Billion in Public Money to EFPA account holders between March 2011 and March 2015. That was an average payout of over $220M TTD per month in that four-year period and would correspond with the September 2011 Parliamentary approval for an additional $10.7 Billion to be spent on the CL Financial bailout. This all raises interesting issues as to the timing of these payments, as shown in this table –

PERIOD Minister of Finance statements on bailout costs EFPA payment details from Ministry of Finance COMMENTS
BEFORE 3rd April 2012 affidavit of Winston Dookeran Para 21 “…(a) $5.0Bn already provided to CLICO;
(b) $7.0Bn paid to holders of the EFPA…”
$6,229,920,482 There is an apparent discrepancy between these figures in the amount of $770,079,518
BETWEEN 3rd April 2012 and 1st October 2012 “…The cost to the national community has been substantial—an amount of $19.7 billion or 13.0 per cent of our current GDP $3,144,270,326 Larry Howai’s 2013 budget statement was that $7.7 Billion had been spent on the CLF bailout after Winston Dookeran’s affidavit. The details from the Ministry of Finance show that only $3.144 Billion of that could be attributable to EFPA payments.
AFTER 1st October 2012 Estimates have ranged from $20 Billion to the $27.7 Billion estimate on 10th May 2017 by the current Minister, Colm Imbert. $1,449,184,402 The Public Money spent after that date exceeds an estimated $6.0 Billion, only a part of which went to EFPA account holders.
$10,823,375,210

Continue reading “CL Financial bailout – the EFPA Details, part one”

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