Fit to borrow: BVI maintains strong credit rating
The BVI has successfully maintained its ‘high creditworthiness’ ratings on the Caribbean Information and Credit Rating Services Limited (CariCRIS) regional scale.
CariCRIS is a leading regional credit rating agency that provides independent opinions on the creditworthiness of governments, corporations, financial institutions, and other issuers in the Caribbean.
The agency also assigned BVI a stable outlook on the ratings.
“This reaffirmed rating is a testament to the Virgin Islands’ sound fiscal management and our commitment to economic stability,” stated Premier Dr Natalio Wheatley. “Even amidst global challenges, our territory’s economic fundamentals remain strong, demonstrating the resilience of our people and our governance practices.”
The high credit rating is expected to benefit the BVI as the territory looks to borrow some $100 million to invest in the economy and improve the territory’s infrastructure.
In the 2024 budget presentation, the Premier said the borrowed funds would be used to address some of the most critical infrastructure issues such as road repairs and sea defences.
And despite the often-strained relationship with the UK, the government said the country’s status as a UK Overseas Territory helped to maintain the high credit rating from the regional agency.
The government said other factors include strong economic fundamentals such as the Virgin Islands’ high GDP per capita as well as its robust tourism industry and financial services sector.
Another factor is dollarisation; meaning the local currency is pegged to the US dollar, fostering economic stability and facilitation of international trade.
Prudent fiscal policy was listed as another factor. The Protocols for Effective Financial Management (PEFM) framework guides responsible fiscal practices, resulting in low public debt levels.
To maintain a positive credit rating, the BVI is advised to invest in its people and address the uncertainties surrounding the implementation of the Commission of Inquiry’s recommendations.
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So why did we turn down the UKs offer of a huge loan guarantee, which would have allowed the RDA get on with major projects years ago, under the experienced expat director. Instead the director left in frustration and the RDA is left doing almost petty contracts which the PWD should be doing.
@Lodger that is how they wanted it. On top of that if it wasn’t for the CDB loan which the NDP secured, RDA would hardly had any money to spend. That money had things seeming like BVI was moving.
How is that possible without audited accounts for 8 years plus? Something does not add up here!
What robust tourism sector? What robust financial services? Both are under constant attack from both internal and external forces.
Sorry, but this seems more like a Governmental propaganda piece designed to try and make us see what is clearly not accurate.
There’s nothing to add up, we just love negativity. The Governments past and present have fumbled the accounts issue but the reality is the BVI Government has never defaulted on any borrowing over the past few decades, has a strong revenue stream and despite all the pit falls, the credit worthiness is still positive. All Government has to do is refinance old debt, get the RDA more involved (as they seem to be the only ones that can complete major projects) and move forward.
These are just some of the hypocrisy that these actors are just making it look real using a set of sweet talk / thanks for reminding the people who may have forgotten / or is not aware of the kind of games that these guys are
playing on their own people , and blaming the UK and governor for their corruption ,negligence and incompetence etc / seems like we got rid of one of the mouth piece (csc) who frigged himself / but we have the wigged canary on the yello site who continues to sing his broken down record racism songs daily , as a deception tool , with the thought that he is fooling the people , one of these days reality will touch him where the sun don’t shine
They love to spin these narratives. What is the health of our finances. Do we have enough liquidity to service greater debt and use the financing in a manner that supports long term grow as opposed to horse tracks or quite frankly the “panties planes and parties” initiatives
This is nothing but bovine scat. The major rating firm Fitch dropped giving a rating for the BVI because they couldn’t find any financial reports to go by. He’s just trying to boost his ego with “mis statements” like Trump
What is the local currency that is referenced in the article?