Trinidad and Tobago\u2019s household debt reached $72.3 billion in December 2025, according to the Central Bank\u2019s Financial Stability Report 2025, as reported by the Trinidad Guardian.<\/p>\n
Household borrowing increased by 3.1%, compared with 7% in 2024, and accounted for 41.5% of GDP. The share of non-performing household loans remained at 2.7%.<\/p>\n
The Central Bank rated household debt risk as moderate, warning that rising living costs, inflation and borrowing expenses could make it harder for families to repay loans.<\/p>\n
Overall financial stability risks were rated moderate to elevated, although regulated financial institutions remained generally resilient.<\/p>\n
The Financial Stability Index fell from 88.8 in 2024 to 87.8 in 2025, reflecting weaker economic activity, rising bad loans, stock market weakness and unstable banking liquidity.<\/p>\n
Government debt also raised concerns. It reached $147.6 billion in December 2025, equivalent to 84.4% of GDP. Banks and insurers held 39.4% of that debt, exposing them to government financial difficulties.<\/p>\n
Under a severe government debt crisis simulated by the Central Bank, banking sector capital adequacy would fall by 6 percentage points to 10.9%. Some banks, including one systemically important domestic bank, would fall below minimum capital requirements. These were hypothetical stress-test results, not actual defaults.<\/p>\n
Banking liquidity also showed pressure: Excess reserves rose 6.2% to $5.1 billion. Average interbank borrowing jumped 46.5% to $169.8 million. Average Central Bank repurchase facility use increased from $23.8 million in 2024 to $55.7 million in 2025.<\/p>\n
Cyber incidents declined 22.9% to 91 cases, but phishing, online scams and digital fraud remained serious concerns.<\/p>\n
The bottom line: Household debt is growing more slowly, but families still owe $72.3 billion, while government debt stands at $147.6 billion. The Central Bank warns that financial pressures on households, banks and the Government require continued monitoring.<\/p>\n","protected":false},"excerpt":{"rendered":"
Central Bank warns rising household debt adds to financial stability risks<\/p>\n","protected":false},"author":1,"featured_media":7219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[],"class_list":["post-7220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trinidad-and-tobago"],"_links":{"self":[{"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/posts\/7220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tringlobe.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7220"}],"version-history":[{"count":0,"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/posts\/7220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tringlobe.news\/index.php?rest_route=\/wp\/v2\/media\/7219"}],"wp:attachment":[{"href":"https:\/\/tringlobe.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tringlobe.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tringlobe.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}