Business View CARIBBEAN
5
compared with 4.6 percent in March 2013.
The composition of the growth in private sector credit
has become more evenly distributed as business lend-
ing recovered in the first quarter of 2014 coming on
the heels of 14 consecutive months of year-on-year
declines. Business loans granted by the consolidated
financial system rose 2.1 percent in March 2014 with
the recovery in business lending being driven by strong
loan growth to the distribution sector of 23.1 percent
and the services sector of 7.9 percent. Consumer
credit by the consolidated financial system continue
to expand by 5.8 percent on a year-on-year basis to
March 2014, manifested by strong growth in housing
related loans. Historically low mortgage rates contin-
ued to spur demand for real estate mortgage loans
in 2014 with the supply of real estate mortgage loans
granted by the consolidated financial system remain-
ing in double-digit territory.
The Central Bank expanded its liquidity management
framework in December 2013, increasing the bor-
rowing limits under the Treasury Bills and Notes Acts.
The Central Bank intensified its open market opera-
tions in April 2014 in an effort to contain liquidity in
the domestic economy by removing $1.2 billion from
the banking system through the issue of a $1.0 billion
treasury bond in June 2013. Between October 2013
and April 2014, the bank rolled over three commercial
banks’ fixed deposits (to the value of $5 billion) held
by the Central Bank which matured during the period.
Also, approximately $4.8 billion was indirectly removed
from the system via the sale of US$750 million in the
same seven-month period.
The weighted average buying rate of the Trinidad and
Tobago dollar appreciated slightly to TT$6.3654 per
US$ at the end of June 2014 from TT$6.3878 per
US$1 in the corresponding period ending June 2013.
Similarly, the weighted average selling rate appreciat-
ed to TT$6.4110 per US$1 from TT$6.4215 per US$1
over the same period.
The overall deficit on Central Government Operations
for fiscal 2014 is projected at $4,876.6 million or 2.7
percent of GDP, compared to an overall deficit of 3.0
percent of GDP for fiscal 2013. Total Revenue and
Grants is estimated at $59,911.7 million or 33.5 per-
cent of GDP, of which Tax Revenue is expected to be
the major component, contributing $47,705.3 million.
Capital Revenue is estimated to more than double
