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  • 1 year ago


The Chief Executive Officer of the Trinidad and Tobago Mortgage Bank tells a Parliamentary committee that the bank is seeing a downward trend in the arrears owed by customers.

This follows the bank's formation via the merger of two State-owned financial entities.

Juhel Browne reports.
Transcript
00:00The Chief Executive Officer of the Trinidad and Tobago Mortgage Bank tells the Parliamentary
00:06Committee that the bank is seeing a downward trend in the arrears owed by customers.
00:11This follows the bank's formation via the merger of two state-owned financial entities.
00:15Jewel Brown reports.
00:17The Trinidad and Tobago Mortgage Bank is a merger of the Trinidad and Tobago Mortgage
00:21Finance Company Limited and the Home Mortgage Bank.
00:25Chief Executive Officer Robert Green led the TTMB's delegation, which appeared before
00:31the Parliament's Public Accounts Enterprises Committee, chaired by Opposition Senator Wade
00:36Mark.
00:37Is there a challenge here in terms of non-performing loans facing the bank and could you give us
00:48a status report on that for the period 2019-2022 and how are you treating with that?
00:58Chairman, I'm happy to report that prior to COVID-19, our arrears ratio was 3.57% of the
01:09portfolio.
01:10At the height of COVID, the arrears figure went in excess of 7%.
01:16The TTMB CEO said the bank carried out the government's request to have a deferral of
01:21three months.
01:22And I think the figure is in excess of 3,000 customers who would have accepted that concession.
01:32We would have added on the three months installment onto the end of their mortgage.
01:37However, there continues to be challenges, even beyond the so-called end of COVID.
01:46There continues to be challenges with customers who have had reduced incomes, loss of jobs,
01:52etc., etc.
01:53Yet, Mr. Green said the TTMB's delinquency ratios are now lower.
01:59As of October 11, 2024, the delinquency ratio above 90 days is 6.08% and with a portfolio
02:11balance of $5.7 million, the delinquency ratio of above 180 days is 4.66%.
02:22Committee member Stephen McClatchy, the Minister of Labour, sought clarification.
02:27We're seeing loans, seeing delinquency rising, and therefore I suspect we will be putting
02:34more stringent measures in place going forward and ensuring that people can actually afford
02:40these loans and that they're not putting you at risk.
02:44I'm happy to report that, yes, you used the words delinquency rising, but we are seeing
02:51a downward trend in the arrears.
02:55We have to have a robust portfolio of mortgages with lower arrears for us to be able to utilize
03:03those mortgages to securitize our funding arrangements.
03:08The TTMB's CEO said there are reports that indicate that the economy would grow in 2024.
03:15He said this speaks positively to the mortgage bank's business.
03:19Jewel Brown, TV6 News.
03:22The CEO of the Trinidad and Tobago Mortgage Bank told the Parliamentary Committee which
03:26trade union will be the recognized bargaining body for the new entity.
03:31The bank is a merger of the Trinidad and Tobago Mortgage Finance Company Limited, TTMF, and
03:36the Home Mortgage Bank.
03:38Particularly as it relates to collective agreements for this new entity, all information is that
03:49you still have outstanding collective agreements for going back to 2015 up to the present time.
03:58I'm not too sure if I'm correct on that, but you can guide me.
04:02Chairman, again, the decision was taken that the existing union, which is the Banking Insurance
04:11and General Workers' Union, BGWU, will continue to be the recognized union under the new entity.
04:19With respect to the collective bargaining agreements, the last collective agreement
04:24expired in December of 2019.
04:27So we have outstanding 19 to 21, 22, and then a subsequent three-year period.
04:37The TTMBCU said proposals have been agreed to by the board and shared with the CPU to
04:42obtain approval.
04:45We've advanced the process with the agreement of the union that it be reported, and this
04:53is a normal step in these issues.
04:57It be reported to the ministry as a negotiation that has broken down.
05:03We have agreed with the union that we will develop a Memorandum of Matters Agreed.
05:10Again, a step towards bringing the outstanding collective agreement to closure.
05:20Memorandum of Matters Agreed is to be shared with the board, this new board, before we
05:29proceed to execute that document.
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