Government’s $100M loan still being finalised
Premier Dr Natalio Wheatley has stated that the $100 million loan the government intends to borrow to fund various local projects has not yet been finalised.
During a press conference held on July 19, the Premier, who also serves as the Minister of Finance, was questioned about the status of the $100 million loan.
He explained that the loan is still yet to receive Cabinet and parliamentary approval.
“We put out a request for proposals, received responses, conducted evaluations, and a recommendation was made for one particular bank to provide the facility,” said the Premier, who did not disclose the bank’s name.
“The next step is for the Cabinet to approve it. It should have been approved this week, but there was one issue we wanted corrected. Most likely, it will be approved this coming week, and then we will move on to the House of Assembly where all these loans have to be approved. After that, we will secure the loan,” he explained.
In a press conference held in early June this year, the Premier indicated that his government was on the verge of acquiring the loan.
Dr Wheatley initially announced in November 2023 that the government intended to borrow approximately $100 million.
At that time, he said the funds would be an investment in the economy, explaining that the projects financed by the loan would improve the territory’s infrastructure, support various sectors, and benefit the public.
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What are the terms of the loan? $ 100 million at 7% over 20 years amounts to $ 775,000 a month due, or about $ 20 per person. That doesn’t factor in related costs: For example, cos of maintaining and insuring whatever collateral is offered over that period. Where is the money coming from to pay for this? That such a loan would cost $ 68 million over its original value (spread over 20 years) is also something to consider in terms of the monies borrowed are spent and managed, an area in which the Territory has historically underperformed
THIS SPREEMIER IS A WASTE OF TIME…YOU CAN TELL FROM THE CONDITION OF HIS DISTRICT
believes that all of us are idiots , whenever some of us obtain a high level of education they always uses it to manipulate those below them using it / not enlighten those not so Fortunate / but use their knowledge as a weapon against them , here we are are experiencing it live and direct
I wonder if the terms will be better or worse than those we might have obtained if we had taken advantage of the UK loan guarantee after Irma?
It is interesting looking back to think if the decision to reject that UK loan guarantee was a good one or not.
I think with the associated external scrutiny we might have avoided the CoI and the Fahie episode.
We also might have got $400m worth of repairs done to a good standard.
Oh well….
WHEN FAHIE REFUSED TO TAKE THE 300 MILLION DOLLARS LOAN GUARANTEE
Instead of borrowing money he should be thinking of how to put us in the green and have a surplus. We are doomed with this mentality. Very few countries can choose what to do freely because of the debt they owe. You well know the bible says the lender is slave to the borrower.
Why do they aim & aspire to continue keeping us in bondage?
A loan of this size (if from a BVI bank) will also need the FSC’s approval since it is significant in relations to any BVI bank’s capital base.
The last time the banks were approached to assist the Government, several years ago, the Government could offer no security, no certainty of a stream of income to repay the loan and no idea (from budgets) as to how it could be repaid at all. So, what has changed???
Hopefully not another from social security
They need to lock down Social Security money because these people hell-bent on spending all of it
I understand we have to be careful with our social security money, but the reality is that the bank has social security money gaining interest on it, the same bank will lend the government the money and make more money off of it.. Money sometimes is just a illusion in figures.. so basically the bank has 100 million of social security monies which is practically government, they will lend the same government that money it a whole lots of interest the irony in life is real!! so yes its hard to say but they are better off borrowing from social security again. Just have to make sure they pay back.at a lower interest rate.. social security already give them 40 million free what is 100 million borrowed?
I hope Social Security Money is invested with a higher yield then earning bank-interest.
SOME OF IT MAYBE BUT IM PRETTY SURE A GOOD PORTION IS JUST THERE SITTING IN THE BANKS.. WITH MINIMUM INTEREST.
YOU HAVE A VALID POINT, BUT WE HAVE TO BE SO CAREFULL STILL.
with the increase in cost of living the amount Retiree’s receive is barely keeping people alive. And we all know pretty soon Social Security money is going to be used to pay retirement funds for HOA members and Government employees since there are no funds available and set aside for their payments.
Remind me why there is a board for social security. They are there to govern the trust rather than yield to S!0wW@nde and the A$$Clown Brigade. Otherwise the board all need to be in jail
1. How much debt the territory current has?
2. With the $100M debt addition what will be the debt to GDP ration? Is this a prudent ratio?
3. What is the payback period of the loan? What is the APR?
4. Will the loan be paid back from the general fund, ie, the good faith and credit of the government? Or a special tax or fee will be assessed?
5. What capital projects this $100M loan will fund?
Socrates, The Frig….here, wait, wait for it, you are damn useful Frig, asking these probing questions, which no one is willing to provide answers to. Nonetheless, you left out a few questions I wish you had ask.
a) how will this loan impact the delivery, if any impact, of services?
b) Is Social Security looking for safe, prudent, competitive opportunities to invest its funds in? If so did government consider borrowing from Social Security? Did the $40 million grant government got from social security during Covid-19 should have been a loan? Can HoA reverse that process, changing from a grant to a loan, a relatively low interest loan? Would borrowing from social security provide a double benefit?
The Frig…………out !