Bankers' Association cautiously optimistic over budget

The Bankers' Association of TT (BATT) has welcomed the proposed 2024 national budget measures aimed at supporting economic growth and diversification.

However, it remains cautious about attaining several of its objectives, given ongoing structural challenges.

On digitisation, BATT said in a release it is encouraged by the Government's continued investment in the digital economy strategy, including expanding e-government.

So it urged the Government to expedite the full proclamation of the Electronic Transactions Act and the Data Protection Act.

"Proclaiming the acts will help businesses to leverage e-commerce and will also foster greater adoption by a wider cross-section of users. A comprehensive legislative framework will also facilitate collection of data pertinent to the digital economy. This will help, for instance, to close the gap in e-commerce data collection in order to monitor progress in this area and inform the development of relevant policies," it said.

It also urged the government to expeditiously introduce relevant revised legislation to establish the National Statistical Institute.

"BATT supports the implementation of the IMF Enhanced General Data Dissemination System Framework, as a first step towards the establishment of the statistical institute, which provides high-quality information at the national, as well as the international level."

It said it strongly believes the country needs a robust statistical repository with data that is timely, reliable and easily accessible to the public for informed decision-making.

BATT welcomed the moves to address foreign exchange shortages. It also commended the initiatives to boost repatriation of foreign exchange earned overseas by local and foreign businesses operating domestically.

"BATT encourages ongoing dialogue among the government and stakeholders to find long-term solutions."It looked forward to clarification of the proposed extension of the two foreign-exchange facilities at the EXIMBANK and an increase in the ceiling of the US dollar.

It said it is heartened the Finance Minister is considering BATT's recommendations on the forex issue.

On crime, the association acknowledged the government’s commitment to addressing security challenges with allocations to law enforcement for increased recruitment, equipment, and training programmes.

However, it believes the complex nature of the crime problem requires a multi-faceted approach to crime-fighting, saying this suggests that a marked and sustained reduction in crime levels is more likely to occur in the medium term.

"BATT will continue to collaborate with the TT Police Service and other stakeholders as we seek effective, long-term solutions to the crime scourge," it said.

While the association welcomed the increase in the minimum wage to $20.50 per hour, it called on the government to provide technical and other assistance for small- and medium-sized businesses to maintain their profit margins as they implement the wage increase.

"This is crucial given the important role that small businesses play in contributing to our GDP and creating jobs for workers, many of whom are in the lower-income group."

It said managing costs to accommodate the increase will help prevent negative effects such as reducing employees' hours, terminating staff or charging higher prices. BATT said the impact of the increase on the small-business community should be monitored to mitigate unintended negative consequences.

BATT was encouraged that the Heritage and Stabilisation Fund's balance rose to US$5.5 billion and is part of the country's "strong external buffers." It urged the government to continue its efforts to strengthen these buffers, which could help the economy withstand future and unexpected exogenous shocks.