VIP dropped the ball on UK loan — Walwyn
Sixth District Representative Myron Walwyn accused the Virgin Islands Party (VIP) government of making a critical error by refusing the United Kingdom’s offer of a $426 million loan guarantee in 2019.
The loan, intended to assist with the recovery following the devastating hurricanes of 2017, was declined after the VIP government came into power.
Walwyn slammed the government’s handling of the situation, contending that its refusal of the UK loan guarantee had detrimental effects on the territory’s recovery efforts. He emphasised that the loan would have provided access to much-needed funds at favourable interest rates, thanks to the UK’s credit rating.
“All the new government had to do when they got in was forward themselves to the bank to try to access that money,” Walwyn said during a recent House of Assembly sitting. He further explained that the territory could have taken only what was needed from the loan and topped up as required. He also highlighted the benefit of the UK’s credit rating, which would have allowed the BVI to secure “cheap money.”
The VIP government, led by former Premier Andrew Fahie at the time, opted not to pursue the loan guarantee. Instead, they took an alternative route, which Walwyn described as a misstep. “The VIP government became the government, and they dropped the ball in spectacular fashion. They dropped the ball,” he added.
The UK offered the loan guarantee following the catastrophic damage caused by Hurricanes Irma and Maria in 2017. The aim was to assist the BVI in financing its recovery efforts, particularly in infrastructure. However, concerns about the conditions attached to the loan guarantee led to hesitations from the then-Andrew Fahie-led government. These conditions included heightened financial oversight by the UK, which some local officials feared could infringe on the territory’s financial autonomy.
Why didn’t NDP do it?
Meanwhile, Communications and Works Minister Kye Rymer pushed back against Walwyn’s claims, raising questions about why members of the previous National Democratic Party (NDP) government did not take advantage of the loan guarantee during their tenure. Rymer argued that the hurricanes occurred in 2017, but the VIP government only came into power in 2019, leaving a significant gap during which the NDP could have acted.
He suggested that the loan’s delay and eventual refusal were not solely the VIP government’s responsibility. Rymer pointed to the internal struggles within the NDP government at the time, arguing that their failure to unite behind their leadership contributed to their inaction.
“That administration, which several members on the other side were a part of, completely fell apart,” he noted. “I hear some of them praising the leader now, but back then, they were undermining his leadership, they would not follow behind him. They broke into divisions. Some of them greatly disrespected him. That same loan guarantee caused great division, and now this administration is being blamed for not taking it.”
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Kye good in his head? The NDP did all the leg work prior to the elections being called. That is obvious from the fact that the VIP as soon as they got in was trying to handle from where the NDP left off on the loan but failed. I does wonder about Kye Rymer sometimes.
Not important now. Damage is done.
Kye Rymer all you and the VIP government can do is blame, the NDP had it set up all the VIP had to do was carry on with whatever they had to do. When Andrew Fahie got in he wanted to change anything that had to do with the UK. The NDP was in only two years after the hurricanes you guys have been in power seven years after the hurricane.
This is kind or irrelevant. the person who made us miss out on that opportunity is in jail where he belong.
The only reason the loan guarantee was turned down is that it required the borrowers they were guaranteeing to provide a detailed breakdown of how the money was going to be spent, meaning no fingers in the till. Rather have nothing and continue with the same old cronyism and corruption.
This article is very confusing. My recollection is that it is a matter of public record that the loan guarantee was first offered to the Dr. Smith led NDP administration. It was not accepted for whatever reason(s). It was again offered to the A Fahie led VIP administration and not accepted, again for whatever the reason(s). I do not recall there ever being a clearly communicated basis from either administration to the public regarding the reason. Though it was said that the respective Governments were not in favour of the applicable conditions. It would therefore seem to me that if there is “blame” to be accepted for the refusal to accept the offer, said blame must be accepted by both the NDP and VIP. I would add that Hon. Walwyn sat in the NDP administration which did not accept the offer.
You need to do some more recollecting.
The RDA was set up to manage the loan funds as this was one of the UK requirements. If the NDP did not accept moving forward to get the loan funds why set up the RDA?
I’ve always said, without the loan funds to manage what is the purpose of the RDA? They have become a “glorified” version of PWD, under direct control of the government.
Hon Walwyn said they drop the ball, but if you watch American football, this was a goal line fumble and the other team took the ball all the way back for a score.
The loan guarantee would’ve violated the agreed financial protocols and lead us down an undefined path at a time when our sovereignty and financial services were being threatened by the same people who offered the guarantee. To move forward without things being clearly defined would’ve been foolish and expected as the shiny object was being dangled to trap us. This is evident with ‘them’ still mentioning it without mention of the circumstances surrounding it. Is the fish smart for avoiding the bait on the hook or foolish for not taking free food?
The loan guarantee was just that, a guarantee. It “violated” nothing. The protocols would have only been breached if and when an actual loan came into play.
How can you be in breach without any funds being borrowed?
Because such negotiations are kept so secret we the public do not know what was being asked for as far as changes or adjustments to the protocols to keep BVI within borrowing guidelines.
“voting has consequences”
@jungle you couldn’t have said it any better. I don’t usually comment but, l had to say something here. Auguilla took the loan guarantee from the UK and turn around and put a 13% GST/VAT on all Goods and Services. Walwyn knows better but he here talkibg nonsense that loan was a trap. What was the real conditions in the loan that the UK put on paper and our guys was hesitant? Heightened Financial oversight.
Anguilla did not take any loan guarantee. Anguilla got grant monies. GST is not on all goods and services.