In her statement to the media, Mrs. Persad Bissessar noted that the judgment serves as vindication of the decisions and actions taken by the former People’s Partnership government.
She recalled that when the PP government assumed office in 2010, they inherited a burning hole in the economy as a result of the Clico financial disaster. She said the fact that Clico’s assets amounted to more than 70% of the country’s Gross Domestic Product gives some idea of the colossal and dramatic ramifications and consequences of the situation. The Opposition Leader added that the critical issues included the stability of the financial system, the risk of the loss of public confidence, possible downgrading of the country’s international credit rating, an adverse report from the IMF and the harsh reality that if the government had paid the Policyholders, it would have compromised the Government’s financial ability to undertake projects and provide goods and services for the rest of the country.
Mrs. Persad Bissessar said the People’s National Movement’s attempt to bail out Clico was ill conceived. She said the $10billion dollar attempt to bailout Clico and British American Insurance was a failure which worsened the crisis. The former Prime Minister also said the public assurance given by the PNM that policyholders would be repaid was based on reckless assumptions about the state of the economy.