(Trinidad Express) Cabinet has approved financial help to the tune of TT$5 billion to help cash-poor insurance giant CLICO recover.

Central Bank Governor Ewart Williams told reporters at a press conference in Port of Spain on Tuesday that the Government initially approved a first tranche to support CLICO of TT$1.2 billion.

“In mid-July, the requested support envelope (inclusive of the first tranche) of TT$5 billion was approved,” he said.

Williams said the financial help would not be in cash alone, but in other instruments that could be easily liquidated to help CLICO pay creditors, pensioners and depositors.

These instruments include Government securities money from other funds that “can be converted as needed”, he said.

He said there was an “overwhelming demand” for matured deposits initially but CLICO was now in a position to make payments to thousands of monthly pensioners using its own resources.

Some customers who had US-dollar accounts have complained they were asked to accept their deposits in TT currency.

CLICO chief executive Claude Musaib-Ali said this was only an option offered to customers because of the demand for US dollars in the financial system.

CLICO Investment Bank, which was officially closed down, will have its assets liquidated shortly when a receiver is appointed within a month.