Gov’t signs largest-ever $100M public loan for key projects
The government has officially signed an agreement for the largest public loan in BVI history—a $100 million loan facilitated by FirstCaribbean International Bank (CIBC).
On Thursday, October 31, Premier and Minister of Finance Dr. Natalio Wheatley signed the loan agreement during a live ceremony. He was joined by Minister of Communication and Works Kye Rymer, who also signed.
“While this new loan will increase the central government’s overall debt stock, it is important to note that this decision was made following rigorous due diligence and analysis to ensure that debt servicing remains manageable and sustainable. The recently laid Medium-Term Debt Strategy 2024-2026 outlines a comprehensive framework guiding the government’s borrowing policies and debt management practices,” the Premier stated.
According to the government, the loan will be allocated to financing essential infrastructural projects, including both recurrent and capital expenditures, totaling $91.65 million. It will also be used to refinance balloon payments due in 2026 on existing loans, totaling $7.91 million, and cover transaction costs associated with arranging the loan facility, amounting to $440,000.
The Premier thanked members of his ministry for their efforts in securing the loan, noting that his administration intends to deliver on the projects designated for the $100 million funding.
In early September, Dr. Wheatley outlined that nearly $54 million will be allocated to infrastructure, water, and sewerage projects. Specifically, $35.8 million is set aside for road repairs, supplemented by additional funding from the Transportation Improvement Network Funds.
Funds will also address sewerage improvements in Cane Garden Bay and East End Long Look, totaling $3.9 million and $7.5 million, respectively. Approximately $8 million will be allocated to improve water systems.
Over $31 million will be directed toward building and upgrading facilities, including the Ralph T. O’Neal Administration Complex, a residential facility for the homeless, and a National Detention Centre. Some of these facilities are expected to reduce government expenses, particularly the Administration Complex, which will decrease rental costs.
Additionally, $6.5 million will go toward the Home Ownership project, and roughly $8 million will be used for loan refinancing.
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This article is good advertising but woefully short of facts. Please include the following info in the next article written for people who know how a business loan is secured:
1) What is the collateral for this loan? Hopefully not dilapidated buildings owned by the BVI government.
2) What are the terms of this loan such as monthly payment amounts, penalties and the time period of this loan?
3) What are the remedies for default of payments?
4) When does the power of sale arise in default of timely payment?
Monthly payments should fall in the range of 700k i believe.
The next series of questions are. Where is the business case for excuting the bugdeted items. ofcousre they can pay this back but value for dollar will screw us.
@More Info, no collateral needs to be put up , for the loan is backed by the full faith and credit of the territory. The territory has not defaulted on any obligations.
Why the heck are we getting a loan to pave some of the roads. Who the heck approved this and can we get a huge vote of no confidence and please. Lets get these crocket ministers who continue to fly their families first call out.
So tired of this obvious nepotism and corruption .
The purple building nhi 50 million plus the 45 million that the VIP giveaway could’ve covered all that
6.5 percent is not good for a loan like this
You sound STUPID! The BVI Govt has great credit which is why they got this loan. The govt never defaulted on any loans, why would they now?
Government borrows $100,000,000 which they could have obtained 3x as much interest free from UK ( although this was on the basis of full honest upto date national accounting history and future spending disclosure) and then immediately sets off Christmas shopping in London.
“it is important to note that this decision was made following rigorous due diligence and analysis to ensure that debt servicing remains manageable and sustainable”
Because we all know how good you are with figures, was your analysis as rigorous as that you did over the government employees $20 million mistake?
No mention of transparent allocation, accountability or distribution oversight.
not surprised.
Free-for-all.
(okay, not all, just those chosen who are free to choose themselves)
Undoubtedly, the government needs to borrow hundred of millions to build new, repair, maintain, upgrade infrastructure, etc. Nontheless, the people needs to apprised of the funding source(s). This is a standard practice that n contracting. Will taxes or fees be raised to amortize the loan? Or the loan will be amortized from Operations and Management Budget? Is the loan being funded through the full faith and credit of the territory? What is the loan APR and monthly payment? Could the loan have structured to be funded through local sources, ie, NBVI, Social Security, etc,? This would have kept money in and create money in the economy.