General Financing Availability Local financing is expensive, with the prime lending rate standing at 17.5 percent in May 1998. The most common method of financing imports and exports is bank borrowing, although because of high interest rates, self-financing is utilized by larger exporters. Two development banks, the Agricultural Development Bank and Development Finance Limited, as well as the Small Business Development Company and the Venture Capital Fund, are also sources of local funds for trade and investment. Trinidad and Tobago is eligible for, and utilizes, all kinds of export and import financing and insurance. 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 U.S. Export-Import Bank or similar institutions from other countries, and under OPIC guarantees. The availability of local project financing is very limited. Most financing, as most investment, comes from overseas sources. Financing for some projects is available from the World Bank, the Inter-American Development Bank and the European Union. Past projects have been funded in energy, health, education, agriculture, infrastructure and tourism.