Government has been performing ‘satisfactorily’ in clearing public debt for the British Virgin Islands, says Premier and Minister of Finance Dr D Orlando Smith.
“Although our total public debt was somewhere around the region of $284 million, by the end of last year we paid off a substantial amount — just over about $125 million, approximately.”
“So, we have been paying our loans and we have had a history of paying our loans very carefully,” said Dr Smith in the House of Assembly last week.
He was responding to concerns in relation to an additional loan government is now borrowing from the Caribbean Development Bank (CDB).
Government is hoping to borrow a sum not exceeding $50 million. This loan is in addition to the $65.2 million recently borrowed from the CDB.
The new loan is to finance a number of institutional and policy reforms and to supplement this year’s budget.
According to 2018 budget projections, the territory’s expenditure surpasses its revenue so the BVI has a fiscal deficit of approximately $53.2 million.
Meanwhile, the CDB approved the new $50 million loan since March.
But, the majority of legislators in the House of Assembly must agree to borrow the funds.
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