Finance Minister Davendranath Tancoo dismissed Opposition MP Colm Imbert’s recent criticism of commercial bank credit card spending limit cuts as “cheap theatrics from the person responsible for creating the foreign exchange crisis.”
The war of words erupted following Imbert’s comments on Republic Bank’s recent decision to impose new reduced US dollar spending limits on credit cards – a move that has sparked concern among consumers and businesses alike.
“Mr. Imbert is expressing fake concern for a crisis he caused by failing to create an enabling environment for foreign and domestic investment, economic diversification and to boost non-energy production and exports in particular,” Tancoo said in a strongly-worded media release.
The Finance Minister highlighted the country’s foreign exchange situation under Mr. Imbert’s stewardship, noting that when the Diego Martin North/East MP became Finance Minister in 2015, Republic Bank’s credit card limit stood at US$15,000 per cycle. By the time he left office earlier this year, that limit had plummeted to US$5,000.
The data reveals a troubling trend across the banking sector. Between 2020 and 2023, Republic Bank slashed its USD spending limit by 67%, while RBC Royal Bank implemented an even more dramatic 73% reduction in credit card USD limits.
“Imbert, as Minister of Finance, simply sat on his hands and did nothing serious to address the impending crisis for the decade during which he was Minister of Finance,” Tancoo charged. “We are reaping the result of Imbert’s incompetence of epic proportions.”
The current Finance Minister acknowledged the fundamental issue facing the twin-island nation: “As a country, we are using more foreign exchange than we are generating, and have been doing so for years.”
Minister Tancoo outlined a three-pronged approach to addressing the crisis, emphasising the need to generate more foreign exchange, manage existing foreign currency holdings more effectively, and engage in import substitution – strategies he argued are “not mutually exclusive.”
The Finance Minister also questioned the motives behind the Opposition MP’s current commentary, suggesting it represents a calculated political strategy.
“His comments must be seen for what it is, a desperate attempt to distract the population from his own complicity, as well as to instill fear in the business environment and chase away domestic and foreign investors,” the Minister stated. Tancoo characterised this as part of what he called “the unpatriotic, anti-people position which the PNM has now adopted.”
Minister Tancoo reassured stakeholders about the government’s commitment to addressing the foreign exchange challenges. “I want to confirm that as Minister of Finance I am committed to working with all stakeholders to ensure effective and efficient use of our limited stock of foreign exchange while the Government rolls out our transformation agenda to generate wealth for future generations.”