Premier to seek UK approval to relax borrowing restrictions
Premier Dr Natalio Wheatley said his government will ask the United Kingdom (UK) to relax borrowing restrictions currently limiting the Virgin Islands’ ability to invest in major development projects such as the airport expansion.
Speaking at a recent press briefing, Dr Wheatley said he plans to raise the issue with UK Minister for the Overseas Territories Stephen Doughty during upcoming Joint Ministerial Council (JMC) meetings in London from November 24 to 28.
“We are trying to discuss with the United Kingdom government relaxing some of those provisions or making adjustments to some of those provisions so we can invest in growth,” Dr Wheatley said. “When we invest in growth, we’re less of a contingent liability to the UK Treasury,” he explained.
The Premier said the borrowing limits imposed under the 2012 Protocols for Effective Financial Management have placed the Territory in what he described as a “fiscal straitjacket”. The protocols restrict government borrowing to 80 percent of recurrent revenue, which for 2025 is projected at around $446 million.
“Our public debt right now is probably somewhere around $170 million or so, maybe around 10 percent of our gross domestic product,” Premier Wheatley said. “The airport expansion is going to cost us over $400 million, so we’ve gone past that easily,” he added.
The 2012 Protocols were introduced in the aftermath of the 2008 global financial crisis to prevent unsustainable borrowing by Overseas Territories and to strengthen financial governance, but elected leaders have since argued that the restrictions constrain economic growth and investment in critical infrastructure.
Premier Wheatley said most countries operate with debt levels up to 100 percent of GDP, while the BVI remains far below that threshold. The Premier argued that the current rules prevent the territory from borrowing responsibly for economic growth.
“This fiscal straitjacket was a result of these protocols for effective financial management, which are over 10 years old and need to be reviewed,” Dr Wheatley said. “A lot has happened since those protocols have come into place. You know, we’ve had devastating hurricanes. The protocols make no provision for what happens in a natural disaster. We’ve had pandemics,” he added.
The Premier promised that he would use the bilateral meeting with Minister Doughty to press for updates to the protocols, alongside discussions on governance reform, climate change, constitutional advancement, and security matters.
The Premier’s request for greater borrowing flexibility comes as his administration pursues the largest budget in the territory’s history — $550.6 million for 2026 — with major infrastructure projects planned across transport, water, and agriculture sectors.
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This man wants to spend us into the grave
So, if $ 170 mill is 10% of the GNP, that would mean GNP is $1.7 billion….today? Really? What is the source of that since we have not had an audited financial statement for the Territory in more than a decade
And, note the casual reference to $ 400 mill for airport expansion presented as a done deal…leaving aside the subterfuge and the absence of detail on that boondoggle, you’d think people would have learned by now that any BVI public project ends up costing at least twice as much (taking twice as long), and would budget accordingly. Either that or sharpen the pencils and at least manage it right to keep it within budget. No one should hold their breath on the latter.
I’ve said it before and will say it again: mega projects (airport expansion, pier park, ports, roads etc) include mega risks!
I would like to see the risk assessments and cost-benefit analysis done on the airport and other projects in the pipeline.
The lack of trust in this government is at an all time high. Will this change come 2027?
…and if they say no, to protect us from ourselves, then he will call it racism and colonialism and call for independence. Change the channel, this show is boring.
I thought we hate the U.K?
the answer will be NO
Let’s hope the answer is no, to keep his snout out of a bigger trough than he already has.
JUST SAY NO,NO,NO,NO.
FIX THE ISLAND, MAKE IT WORTHY TO BRING MORE TOURISTS INTO.
WHY THE HELL WE NEED A BIGGER AIRPORT.
CRUISESHIP #’S NEED REDUCING.
CHARTER BOATS ARE AT MAX AND NEED REDUCING.
WHY DO WE NEED AN ENDLESS PARADE OF CHEAP TOURISTS.
WE NEED VALUABLE TOURISTS, THEY DONT MIND TAKING THE TIME TO GET HERE.
All here who express skepticism about the airport project (both its rationale and whether it would come in on budget) are spot on, and let’s hope that the UK’s response to increasing the Territory’s borrowing limit is a hard “no.”
Where’s the report on the Bank of Asia $5M?
When’s the last time you saw an update on the Anegada Solar Farm, which was supposed to have been finished by NOVEMBER of 2023, and yet all that we have heard is an August of 2025 photo op when the “powers that be went to Anegada” to proclaim that it will be “commissioned soon.”
Giving these people the ability to borrow more money is like giving a four year old child a hand grenade as a toy – nothing good can come from it….
there will be lots of commissioned soon. Let them finish or start what they had held back for years. election right around the corner; vote them out.
Why muust and UK have the authority over who, when and froom whom we borrow?
VI, we have get with it.
We muust unite and remove our political existence from this modern day colonial oppressiion.
What happen to the $100,000,000.00? Thid dude spending like it he money. like a baby seeing TT for the first time.
Hmmmm interesting that you want more money but you want independence. Back home for a few weeks and I am appalled at the cost of living especially groceries. Maybe you should be asking the UK to help you with a fund for the people (not you in your big houses). Heaven only knows how these regular families can afford to eat, buy water, diapers, formula, gas …