by Afra Raymond
One of the major issues facing the country as this recession unfolds is the pressing need to review the State Enterprise sector. A Cabinet-appointed committee, chaired by Dr Terrence Farrell, was established to examine the SOE sector, but we have no idea yet as to their recommendations.
One of the hugest State Enterprises is Petrotrin, a major player in the national economy, with the immense influence of the OWTU on the side of its workers. A great deal of discussion is now emerging on whether or how Petrotrin could be restructured or privatised.
Read full article – Bond Issues
Just the other day the T&T economy was firing on all cylinders.
@Dave. Even though Trinidad is going through a slow down, the economy overall is fundamentally sound: Debt to GDP ratio (<60%), INVESTMENT GRADE ratings on government debt, unemployment rate (5%), 12 months of reserve at the central bank, a wealth fund with US$4.5 billion , and headline inflation is normal.
Petrotrin is suffering from economies of scale, high debt burden, a bloated payroll, and a thin refinery margin. It is in the best of TT government to privatise this entity.
Agree if we go by the recent S&P report things are not as dire compared to Barbados.
http://www.guardian.co.tt/business/2017-04-22/sp-downgrades-tt
Trinis are concern though:
http://www.trinidadexpress.com/20170423/news/uwi-lecturer-this-is-a-disaster
Keeping an eye on T&T:
300 barrels of oil split in the Gulf of Paris. One of the hazards of a Barbados entering the oil business.
Moody’s downgrade T&T to junk.
@ David April 27, 2017 at 7:41 AM
Barbados should be thanking its lucky economic stars that the price of oil is still relatively low.
Any significant increase needed to improve the fortunes of the T&T economy will certainly spell disaster for the mono-rail tourism based economy which Barbados is on.
Further haemorrhaging of the foreign reserves due to a spike in oil prices would result in immediate pressure on the currency peg forcing it further down the ladder of the greenback.
It seems that Hyatt and the offshore drilling programme are sailing in the same stalled boat.
Where are the foreign investors backing these two projects vital for the economic survival of Bim?
@Miller
How do you explain Guyana’s drilling program in deep water in the same conditions Barbados has to operate?
Yes Barbados is lucky oil price has remained low.
Trinidadians are notoriously poor managers. It has always been a place where fete was king and productivity was low priority, and then there is the cultural divide….
When the price of oil ramped them up in the income bracket, the thing that grew most of all was graft and stealing at high levels.
Jack Warner has been exactly representative of their national ethos.
When Trinis were encouraged by Bajan business owners (like Money B’s dad) to shell out the petro-dollars in exchange for ownership of Bajan birthrights, it spelled the end of our era of success….. and now that the price of oil has slumped (driven by the USA’s cold war on Russia), both of our economies will suffer the consequences.
If the price of oil stays low, Trinidad is doomed.
If the price of oil is high, Barbados (owned by T&T) is doomed.
If the price of oil floats moderately, we both are doomed.
This is what “OneCaribbean” and “CSME” is all about….. being doomed together.
” Oil prices are tanking right now and just broke below $49 a barrel ”
Yes Bushie, you are right…….. but cropover here now so it is nuff rum an wukkin up to distract.
@Hants
There is the Reggae Festival this weekend.
@ David,
we are good at fetes and festivals.
They are good for the economy and entrepreneurial vendors get an opportunity to make some money.
@Hants
And the foreign exchange we pay to the artists. It helps to support the performers in the region.
As of this morning Moody’s lowered T&T to junk Bond status.