sector projects including highway construction and housing, and perhaps to a lesser extent some private sector projects. local sales of cement – a key indicator of construction activity – were up by 12½ per cent ( on a year - on - year basis ) in the third quarter of 2013. the performance of the distribution sector reflected increased retail sales in several industries, including dry goods, supermarkets and groceries and motor vehicles. regarding the latter, sales of new motor vehicles have been running at double digit rates into the third quarter of 2013. the pda motor vehicle series was ended within a record 3 months. in the face of still weak private demand, the government budget has served as the main stimulus to economic activity over the past few years. given the country ’ s strong foreign exchange reserves and low public debt to gdp ratio, i believe that the government has enough fiscal space to run temporary budget deficits. in fact, since 2010 the central government has realized moderate fiscal deficits not exceeding 3 per cent of gdp. nevertheless, it is important for the government to respect its own plan for moving to fiscal balance over the medium term, and to accelerate these plans, once conditions permit. ladies and gentlemen, our public debt remains within manageable levels. after a decade long absence, trinidad and tobago successfully returned last week to the international capital markets with international investors demonstrating overwhelming confidence in the country ’ s medium term prospects. we were able to issue a us $ 550 million eurobond that was oversubscribed by a factor of almost ten times. indeed, i see this tremendous vote of confidence by foreign investors as a much needed wake - up call to the local private sector. the message is clear. the local business community must get back into the game ; stop watching and commenting from the sidelines. some commentators have questioned the rationale behind this bond issue. one concern relates to the government ’ s decision to access the international capital markets rather than use the ample liquidity available in the domestic financial system. another concern is that this bond issue could jeopardize our public debt situation. let me put to rest these concerns. first, trinidad and tobago enjoys the second strongest credit rating in latin america and the caribbean, after chile. we need to leverage our investment grade credit rating to differentiate ourselves from other countries in the region, who are still struggling from the global crisis, and to highlight the quality of our economic management amidst the global uncertainty. second, it is true that government could have easily raised this volume of financing

one of negative sentiment. when i assumed office just over 15 months ago, i faced the following economic conditions : • sharp contraction in economic growth • soaring food price inflation • declining external reserve position • weak business confidence today : • economic growth is slow but steady • food price inflation is down to within single digits • external reserves have stabilized • business confidence is returning, albeit slowly therefore is not all doom and gloom. at the same time, we are not complacent. we recognize the inflection point faced by the global economy. we recognize the considerable economic challenges facing trinidad and tobago, especially diversifying away from the heavy reliance on the energy sector. the central bank is absolutely committed to maintaining macroeconomic stability so the business sector can continue to make longer - term decisions in an environment of increasing bis central bankers ’ speeches confidence. by explaining the cross - currents at work in our economy, our projections for what ’ s ahead, and our monetary policy response, we are doing our part to help strengthen business confidence. so now it is your turn to be the positive change you want to see in trinidad and tobago. i thank you. bis central bankers ’ speeches