Estimated household debt in Trinidad and Tobago rose sharply in 2024, reaching $70 billion, or 40.6% of GDP, according to the Central Bank’s 2024 Financial Stability Report.
The increase, driven by rising demand for real estate mortgages, motor vehicle loans, and credit cards, saw consumer loans grow by 9.5% year-on-year, with real estate loans alone accounting for 43% of the consumer loan portfolio.
The Central Bank warned that this expansion, while supporting domestic demand, has led to higher household leverage, increasing the financial sector’s exposure to repayment risks.
It stated that this risk is especially pronounced in lending to high-risk borrowers who are susceptible to financial shocks, such as sharp increases in interest rates or declines in household income.
As a result, the Central Bank pointed out that financial institutions may face several challenges, including increased loan defaults and the need for greater loan loss provisions.