| FINANCIAL institutions must focus on boosting consumer confidence which is critical to the economy, said Finance Minister Karen Nunez-Tesheira.
Nunez-Tesheira was speaking at yesterday's launch of the 2008 Programme of Training and Development initiatives by the Co-operative Credit Union League of Trinidad and Tobago at the Crowne Plaza Hotel, Wrightson Road, Port of Spain.
She said while economic pundits are questioning whether or not the US economy would fall into a recession, consumer confidence remains a critical factor since 70 per cent of the Gross Domestic Product of the United States was based on consumer spending patterns.
She said reforms undertaken by the Ministry of Finance, including a framework to regulate the credit union sector which has assets exceeding $4 billion, will ensure that it meets international best practice standards to encourage consumer trust.
Nunez-Tesheira also called on credit unions to encourage their members to save as she noted an increase in persons incurring debt.
"The current buoyancy of the economy has been accompanied by a significant expansion in consumer credit as people spend and borrow at high rates instead of making the financial decisions to ensure financial security so there has been a real expansion of people incurring debt.
"I strongly urge the credit union sector to leverage its position to influence the financial decisions of its membership away from consumption to greater savings," said Nunez-Tesheira.
She lauded the Central Bank's effort to help people spend money wisely through its own financial literacy programme and stressed the need for credit unions to have greater involvement in the programmes.
The Central Bank, earlier this week, revealed in one of its literacy programmes, that retirees were often unable to live on their pensions alone.
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