Regional lending body, the Caribbean Development Bank (CDB) does not believe the local recovery process will be at optimal levels; at least not this year.
According to the CDB’s 2018 economic report on the BVI released last month, the territory is ‘likely’ to experience difficulty in fulfilling the labour demands necessary for the local recovery effort.
The report said: “Capacity constraints, particularly labour, will likely continue to adversely affect the pace of reconstruction.”
The CDB said these ‘likely’ capacity constraints are part of the ‘downside risks’ of the “many regulatory requirements that are being imposed on the financial services sector”.
These requirements are largely from superpowers such as the European Union which currently has BVI on its ‘greylist’ of tax haven jurisdictions and the United Kingdom which is providing a £300 million loan guarantee to the BVI.
The CDB, in the meantime, said additional risks to the BVI and its recovery includes “a global economic slowdown”. It
With these potential threats, the CDB encourages central
As a lender, the CDB typically monitors the economy of its borrowing countries. The CDB loaned $65 million to the BVI for rehabilitation and reconstruction following the 2017 disasters.
Copyright 2021 BVI News, Media Expressions Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.