TRINIDAD AND TOBAGO · ECONOMY
Key Facts
- What The Central Bank of Trinidad and Tobago published its Financial Stability Report 2025 in November 2026.
- Rating It rates financial stability risks ‘moderate to elevated’ for 2025.
- Government Government debt was TT$147.6 billion (about US$21.8 billion), or 84.4% of gross domestic product (GDP), at the end of 2025.
- Households Household debt rose 3.1% to TT$72.3 billion (about US$10.7 billion), or 41.5% of GDP.
- As of Sunday, 8 November 2026, 08:00 UTC.
Trinidad and Tobago’s central bank names government debt, bank liquidity, cyber incidents and household borrowing as the main concerns for its financial system.
The Central Bank of Trinidad and Tobago has rated risks to the country’s financial system as ‘moderate to elevated’ for 2025. Its Financial Stability Report 2025, published in November 2026, points to government debt, volatile bank liquidity, cyber incidents and household borrowing as the main concerns.
The twin-island Caribbean nation relies on energy exports, so its banks and public finances move with global energy markets. The report adds that the Middle East war, which began in February 2026, is an outside risk through energy and food prices, and all figures here are converted from Trinidad and Tobago dollars at about TT$6.78 per US$1, a recent market rate.
Government Debt and the Banks
Adjusted general government debt, the bank’s main measure of public debt, stood at TT$147.6 billion (about US$21.8 billion) at the end of December 2025. That is 84.4% of GDP, above the 60% threshold that the report cites from the International Monetary Fund for countries with access to financial markets.
The fiscal deficit widened to TT$10.1 billion (about US$1.5 billion) in the 2025 fiscal year from TT$9.1 billion (about US$1.3 billion) a year earlier. Most of the debt is owed at home, and local banks and insurers hold a large share, which the bank calls a structural concern.
In a stress test, a severe shock to government credit would cut the banking sector’s capital adequacy ratio, a buffer against losses, by 6 percentage points to 10.9%. Some banks, including one domestic systemically important bank, meaning one whose failure would shake the system, would fall below minimum capital if the state defaulted.
Household Debt Slows but Stays High
Household debt grew 3.1% in the year to December 2025, to TT$72.3 billion (about US$10.7 billion), slower than the 7.0% growth of 2024. It equals 41.5% of GDP, up from 40.6% a year earlier.
Across the banking sector, the share of loans that are non-performing, meaning borrowers have stopped paying, held at 2.7%. The bank rates household risk ‘moderate’ but warns that outside shocks could erode purchasing power and weaken repayment.
What It Means for You
For US investors and lenders with exposure to Trinidad and Tobago, the report is a gauge of how much room the state and its banks have for a shock. The central bank’s own tests show that room is thinner for a government default than for a squeeze on households.
Related reading: our settlement story on a fired Trinidad central banker and our explainer on who holds power in Trinidad and Tobago. Both give background on the country’s institutions.
What Is Not Known
The report gives no forecast for energy prices or for the course of the Middle East war. We have not yet seen an official government response to its findings.
The central bank describes its stress-test results as scenarios, not forecasts. It also says the domestic financial system stayed resilient in 2025, helped by strong capital buffers and profits.
More: Caribbean news in English, every day from The Rio Times.
Frequently Asked Questions
How much household debt does Trinidad and Tobago have?
The central bank estimates household debt at TT$72.3 billion (about US$10.7 billion) in December 2025. That is 41.5% of GDP, and growth slowed to 3.1% from 7.0% in 2024.
How high is Trinidad and Tobago’s government debt?
The central bank puts it at TT$147.6 billion (about US$21.8 billion), or 84.4% of GDP, at the end of 2025. The report notes that this is above the 60% threshold it cites from the International Monetary Fund for market-access countries.
Is the Trinidad and Tobago financial system in danger?
The central bank rates overall risks ‘moderate to elevated’ but says the system stayed resilient in 2025, with strong capital buffers and profits. Government debt held by banks and insurers is its main structural worry.
Sources: Central Bank of Trinidad and Tobago, Financial Stability Report 2025 (November 2026), read 8 November 2026: central-bank.org.tt/core-functions/financial-stability/financial-stability-report/. Exchange rate: about TT$6.78 per US$1.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error