BVI to negotiate borrowing limits with UK
As the government faces mounting public pressure to fix failing public infrastructure, Premier Dr Natalio Wheatley has stated that the BVI will seek to raise the borrowing limit it has to adhere to under an agreement with the United Kingdom.
The BVI and the UK signed the Protocols for Effective Financial Management agreement back in 2012, which dictates that the territory is not permitted to borrow more than 80 percent of its recurring revenue.
The BVI has a borrowing cap of about $400 million.
But Premier Wheatley said the BVI will seek to adjust this limit when they meet with UK officials at the annual Joint Ministerial Council later this year. Overseas Territories and United Kingdom Ministers participate in the Joint Ministerial Council every year where they advance discussions on the security and good governance of the territories, sustainable development, economic and social progress and to agree on priorities, develop plans and review implementation.
The Premier said other Overseas Territories will also be seeking to raise their borrowing limits as they seek to recover from global shocks.
“A lot of us are just asking for more flexibility. Let’s take for instance the liquidity ratio: if it shifts from 25 per cent to 20 per cent we’d have more money to spend on infrastructure,” Premier Wheatley told the Talking Points radio show recently.
The Premier also revealed that the BVI will need to borrow in the region of $60 million to start addressing infrastructure upgrades in the community.
“We’d really want to push for it (the acceptable loan amount) to be as high as possible, but given the fact that we have to be able to take out what we can service because if we’re having a difficult time servicing our debt, we’ll end up having to make cuts in difficult areas. We have a very good record of being able to repay our loans,” the Premier explained.
In the meantime, Premier Wheatley said his government is taking steps to cut costs in light of cries for increased financial resources. He said that’s why the government is moving swiftly to complete the Central Administration Complex which will house many public offices and reduce the yearly bill that is spent on renting office spaces.
“Since 2017 till now, we’ve probably spent about $36 million on rent and that money could have built another government complex. There are also a number of other areas where we can save money and persons may find some of them scary but it’s something we have to do,” the Premier explained.
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And people talk about independence?
So you need to borrow more to recklessly spend more and misappropriate funds? With the revenue coming in every year we should not look like a Third World Country.
This is why we need to elect business management people, unlike the ones we did who have zero business experience. Borrowing isn’t the answer; cutting expenses is what a responsible business would do instead of increasing debt!!
Get rid of 30% of employees, get out of all of the leases on private office space (why is the Airport Administration in an off site building, same with Ports Authority) and pass a resolution that no space will be rented from any relatives of elected officials!
Stop acting like financial idiots and start being responsible with our money; this is our money, not theirs, and we want them to be more responsible.
No new capital projects until the infrastructure is fixed. We don’t need a new ferry dock in Soper’s Hole, just need to streamline the clearing process, getting rid of paper and just scanning passports.
Same at airport, get rid of paper to speed up the process, increase staff at Immigration and Customs, open up the VIP room for everyone.
The quality of life has degraded for everyone except the elected’ families and cronies, which needs to be reversed. No new capital projects, no borrowing, cost cutting including no new vehicles, staff reductions, until the infrastructure is rebuild for everyone!!!
Letting the people down again, If this govt was a household or a business it would tighten its belt, trim some costs, forego something to realise these important objectives. No, we waste money on all day concerts, unneeded govt jobs and a myriad of wasted misappropriations like a $1million elevator and think that borrowing is the way to forward.
If we need to ask the UK to increase our borrowing limit to fix the roads then how in the lord almighty will we fund an airport expansion? (Which, BTW, is unneeded).
Limits are there to protect from bankruptcy. The BVI can’t print money from thin air? How is all this proposed debt going to be paid off when we can barely handle our current debt?
borrowing money from China than the UK.
Yes ask your parents for permission.
Who will lend to the Government? They don’t have recent audited accounts, or a credit rating, or proof of how the loan will be repaid! They have a huge and underfunded pension responsibility for Government retirees and a bloated and inefficient bureaucracy. Bottom line, they are not a bankable risk. Better to follow the advice of most of the comments above and cut costs to improve efficiency.
They just spent $36 million on inflated rents to their relatives and cronies. But they cant build without borrowing?
That is just noise to go and take a grant from our Social Security because we are not allowed to borrow.
If this man (the Sl**est Premier the BVI has ever had) and his A** Clown Brigade uses the same rationale as in the never ending party (spend 250k for. 45k payout) we in trouble, Buddy
I scared just thinking about how these guys going to squander these millions that they CAN borrow, while at the same time seeking to allow the country to be in even more debt than it legally can be in currently. Next thing is more tax in our behind to pay for their bad decisions. This the same government that paid 90k per kiosk at the market and 1 mil on an elevator for the complex. That debt ceiling need to stay where it is until value for money is a priority. Cutting down on rent is indeed a good start though.
Who will lend to the Government? They don’t have recent audited accounts, or a credit rating, and their paramount goal, as was stated, is to corrupt the system into their pockets..
BVI voters are the stupidest political illiterates on God’s earth. None blinder and dumber than them.
This dude is not good in his head at all. Isn’t this the same person who bragged that we are not broke but now going to negotiate for funds? What we do here buddy? Our x My family and I apologise for this. We are in deep trouble. He is behaving like someone I know and if so we are in deep trouble.
Henchmen crying so he must find ways to get some cash flowing their way. Keep it up
We are on the road to becoming another Haiti because of the love of money . No wonder they want independence so they can do as they please. I challenged another news site to put this as you’re a very bias news media.
So, you want independence but want the UK to protect you, fund you, support you, and bail you out of the sh1t every time a politician here defrauds, pays family members, facilitates drug smuggling and victimizes Ex-pat workers with no rights or voice? The belongers are nothing but racists looking for free hand outs! Just remember that this is NOT your territory! You may have the power of running your islands on a daily basis for administration purposes (Extremely badly), but these islands belong to the Crown and your thieving representatives from your own families can be kicked out of governance at the drop of a hat! So I suggest you start acting like adults and maybe drop the “Bawn here!” attitude and maybe let people with skills, education, experience and knowledge help you run the failed state with overtones of Apartheid?