Episodes of financial failure in Trinidad and Tobago can be linked in part to  governance issues. Like all other jurisdictions, Trinidad and Tobago has had its share of financial company failures. Most would have been precipitated by a worsening in economic conditions which unmasked not only fragilities in business practices but also risky investment patterns and insufficient controls.
Any financing under the ESM needs to be subject to very strong policy conditionality and, in general, should be designed such as to avoid moral hazard. If implemented in a comprehensive and ambitious manner, the overall governance package will ensure competitiveness in the euro area, strengthen its growth potential and contribute to prevent future crises.