Foreign Exchange Rationing
Foreign currency in Trinidad and Tobago is distributed to importers through commercial banks under an allocation system, and demand has consistently exceeded supply. An importer with money in the bank and every intention of paying may still wait months to obtain the dollars needed to settle a foreign invoice.
This changes what a demand should say. Pressure applied to a debtor stuck in an allocation queue accomplishes nothing except relationship damage; pressure applied to one that obtained currency and used it elsewhere is entirely justified. Establishing which is the first question, and it is answered by the debtor's bank position rather than by its explanation.
Summary Judgment and Statutory Demand
Where a defendant has no realistic prospect of defending, summary judgment is available and avoids trial. Against a company that can pay but will not, a statutory demand followed by the prospect of winding-up proceedings is the familiar and effective common law lever.
Both are appropriate only where the debt is genuinely undisputed and the failure to pay is a choice rather than a constraint - which returns to the currency question.
Energy and Petrochemicals
Trinidad and Tobago's commercial economy is dominated by energy and petrochemicals and the industrial supply chains around Point Lisas, alongside a substantial regional distribution role for the wider Caribbean.
Counterparties in the energy chain frequently hold foreign currency revenues directly, which places them in a different position from a domestic importer. Where your debtor is in that sector, a settlement structured against export receipts avoids the allocation queue entirely.
Four Years
The limitation period for a simple contract claim is four years - shorter than the six years applying in most Commonwealth common law jurisdictions, which is a distinction creditors familiar with English or Caribbean neighbours' practice regularly miss. A written acknowledgement or part payment restarts it.
How Long Does a Trinidadian Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Position assessment Whether the debtor is unwilling or awaiting FX | 2–4 weeks | Low |
| Letter of demand Formal demand, negotiation | 2–4 weeks | Low |
| Statutory demand Where the debt is undisputed and payable | 4–8 weeks | Low |
| Summary judgment No realistic prospect of defence | 6–14 months | Medium |
| Enforcement and transfer Execution, then currency allocation | 4–12 months | Medium |
How Does SXB Global Handle a Trinidadian Case?
We establish whether this is an unwillingness problem or a currency problem before choosing a tone, because the two require opposite responses. Where the debtor holds foreign currency revenues we structure the settlement against them and bypass the queue entirely. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.