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Trinidad and Tobago’s household debt reached $72.3 billion in December 2025, according to the Central Bank’s Financial Stability Report 2025, as reported by the Trinidad Guardian. 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%. 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. Overall financial stability risks were rated moderate to elevated, although regulated financial institutions remained generally resilient. 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. 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. 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. 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. Cyber incidents declined 22.9% to 91 cases, but phishing, online scams and digital fraud remained serious concerns. 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.
Trinidad and Tobago’s household debt reached $72.3 billion in December 2025, according to the Central Bank’s Financial Stability Report 2025, as reported by the Trinidad Guardian.
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%.
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.
Overall financial stability risks were rated moderate to elevated, although regulated financial institutions remained generally resilient.
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.
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.
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.
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.
Cyber incidents declined 22.9% to 91 cases, but phishing, online scams and digital fraud remained serious concerns.
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.
News Desk is the editorial publishing account for Tringlobe Media News, covering breaking news, public affairs, entertainment, community developments and regional stories across Trinidad and Tobago, the Caribbean and internationally.
