Statement by the Finance Minister of Trinidad and Tobago on the Santiago Principles
Press Release No. 08/09
October 14, 2008
At the Ministerial Meeting of the International Working Group of Sovereign Wealth Funds (IWG), held on October 11, 2008, Ms. Karen Nunez-Tesheira, Finance Minister of Trinidad and Tobago, made the following statement on the Santiago Principles:
"I am really pleased to participate in this meeting, to recognize a job well-done and to applaud a shining example of multi-lateral cooperation at its highest level. The realization of the Santiago Principles of Sovereign Wealth Funds — an initiative completed in less than six months — clearly demonstrates what the international community could achieve when countries identify common interest and commit to work for the common good.
"I would like to extend my sincere congratulations to the International Working Group of Sovereign Wealth Funds for bringing a most complex exercise to a successful conclusion in a relatively short time. A special recognition is deserving for the two co-chairs — Mr. Hamad Al Suwaidi and Mr. Jaime Caruana — for their successful management of what must have been some most delicate and complex negotiations. And many thanks to the IMF staff for firstly, taking on this difficult exercise and secondly for providing all the back-up research and secretarial work.
"Trinidad and Tobago was honoured to be a member of the International Working Group. Compared to almost all the other members of the Group, we have a relatively new and small fund. However, we found ourselves on the right side of history. Our fund — the Heritage and Stabilisation Fund — began in 2007 with a robust legal framework and the highest standards of governance, transparency and accountability, much like what are now contained in the Santiago principles. Our Fund is also structured to play a constructive role in our overall macro-economic management.
"Like many other countries, we initially wondered about the need for a set of universal principles for sovereign wealth funds. We held the view that SWF's were obviously good for the stability of the international financial system since their focus on long term investments helped to reduce short term volatility and brought much needed diversity to global financial markets.
"However, through our participation in the Group we recognized the need to be sensitive to the concerns of recipient countries in order to reduce protectionist pressures and support the maintenance of an open investment climate.
"The current turmoil in international financial markets underscores the critical importance of international co-operation for resolving global problems. The Santiago Principles is a major step towards closer international co-operation. It is envisaged, Mr. Chairman that through the pursuit of these principles and practices, Sovereign Wealth Funds will continue to bring economic and financial benefits to home countries, recipient countries and the international financial system.
"In closing, I would like to express our support for the establishment of a standing Group which will facilitate the dissemination and implementation of the GAPP and keep the provisions under continuous review in the light of changing circumstances"