VIII.  Trade and project financing:

Trinidad and Tobago has a well-developed, reliable, responsible and
trustworthy banking system, which operates under central bank oversight.
There are no restrictions on borrowing by foreign investors.  Foreign
exchange controls were lifted on April 13, 1993.

Local financing is expensive.  Interest rates can exceed 20 percent.  The
most common method of financing exports from Trinidad and Tobago is bank
borrowing, although because of high interest rates, self financing is
utilized by larger exporters.  All types of payment are available and
employed.  Local banks have excellent reputations and foreign
correspondent relationships.  Imports are financed through banks or, when
appropriate, by the US Export-Import Bank, Puerto Rican section 936
financing, or under OPIC guarantees.

T&T is eligible for, and utilizes, all types of export and import financing and
insurance.  The government is currently establishing its own export-import
bank, which has already begun some limited export financing.

The availability of local project financing is extremely limited.  Most
financing, as most investment, comes from overseas sources.  Section 936
financing is used extensively.  Foreign banks, particularly US Banks, often
finance projects.  Financing for certain, specific, projects is available from
the world bank and the Inter-American Development Bank.  Most projects
are energy related, although international financial institution financing
of agricultural and tourism development projects is also available.

All Trinidad and Tobago banks have correspondent relationships with US
and Canadian banks.  Citibank is the only US Bank with offices in T&T,
although a number of US Banks have been active in providing project
financing, divestment brokerage, and overseas bond marketing services.

Trinidad and Tobago is eligible for two USDA programs that promote
exports of US agricultural products:

  Export Enhancement Program (EEP) provides cash bonuses to US
  exporters to help lower prices and keep US products competitive with
  subsidized foreign agricultural exports.  For 1994 - 1995, T&T's EEP
  allowance is 150 thousand metric tons of wheat.

  Commodity Credit Corporation's Export Credit Guarantee Program
  (GSM-102) provides credit guarantees to US exporters for sales of US
  agricultural commodities.  In 1994, US$75 million in credit was
  available to finance exports of wheat, soybeans, rice, wood, feedgrain
  and barley malt to T&T.  Shrimp food, to be used in aquaculture, was
  recently added to the list of products qualifying for credit
  guarantees.