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Premier mum on UK response to loan guarantee concerns

- says Crown willing to address issues surrounding borrowing ratio
Primer and Minister of Finance, Hon Andrew A. Fahie has revealed that the United Kingdom through correspondence with the VI has indicated that they are willing to address some concerns regarding the Loan Guarantee issue facing the territory. Photo: GIS/File
The Virgin Islands was devastated by Hurricane Irma on September 6, 2017 and is now seeking loans to continue the rebuilding of the territory. The United Kingdom, the Mother Country, is only providing loan guarantees but is asking the VI to surrender some amount of financial control, which the VI Government is resisting. Photo: VINO/File
The Virgin Islands was devastated by Hurricane Irma on September 6, 2017 and is now seeking loans to continue the rebuilding of the territory. The United Kingdom, the Mother Country, is only providing loan guarantees but is asking the VI to surrender some amount of financial control, which the VI Government is resisting. Photo: VINO/File
In addressing one of the ambiguities surrounding the Loan Guarantee, the Leader of Government Business at an August 20, 2019, meeting at the H. Lavity Stoutt Community College (HLSCC) pointed out that the Protocol for Effective Financial Management signed between the National Democratic Party (NDP) Government and the UK in 2012, stipulates certain financial indicators that must be maintained. Photo: Internet Source
In addressing one of the ambiguities surrounding the Loan Guarantee, the Leader of Government Business at an August 20, 2019, meeting at the H. Lavity Stoutt Community College (HLSCC) pointed out that the Protocol for Effective Financial Management signed between the National Democratic Party (NDP) Government and the UK in 2012, stipulates certain financial indicators that must be maintained. Photo: Internet Source
A resident of Virgin Gorda gives some feedback at the consultation meeting on the United Kingdom (UK) loan guarantee at the Catholic Community Centre on August 21, 2019. Photo: GIS/Facebook
A resident of Virgin Gorda gives some feedback at the consultation meeting on the United Kingdom (UK) loan guarantee at the Catholic Community Centre on August 21, 2019. Photo: GIS/Facebook
VALLEY, Virgin Gorda, VI - Premier and Minister of Finance, Hon Andrew A. Fahie (R1) has revealed that the United Kingdom (UK), through correspondence with the Virgin Islands (VI), has indicated they are willing to address some concerns regarding the Loan Guarantee issue facing the territory.

The Premier was at the time speaking at a consultation meeting on the UK Loan Guarantee at the Catholic Community Centre in Virgin Gorda on Wednesday, August 21, 2019.

Virgin Islands News Online (VINO) has reached out to Premier Fahie to ascertain the full details of the correspondence; however, no response was received up to publication time.   

'UK is watching' – Premier

“The UK is watching and they have others watching as we speak, and we have nothing to hide, it becomes [the] people’s business,” he said in response a resident of VG inquiring about the government’s position on the issue.

According to the Premier, "Today [Wednesday] is the first day that I get something from the UK saying that we're willing to extend [the] time for you to get back inside the ratio.”

Premier Fahie has previously stated he was not going to take any promises from the UK regarding the UK Loan Guarantee and the Protocals for Effective Financial Management unless they were in writing.

In addressing one of the ambiguities surrounding the Loan Guarantee, the Leader of Government Business at an August 20, 2019, meeting at the Eileene L. Parsons Auditorium, H. Lavity Stoutt Community College (HLSCC), in Paraquita Bay, Tortola, pointed out that the Protocols for Effective Financial Management signed between the National Democratic Party (NDP) Government and the UK in 2012, stipulates certain financial indicators that must be maintained.

The Protocols instruct the government to keep the territory’s net debt within 80 percent of its recurrent revenue and its annual debt payments within 10 percent of recurrent revenue.

The Protocols, based on revenues, expenditure, debt and debt servicing were signed before the 2017 Hurricanes, therefore, according to the Premier, it is only fair that certain ratios have to be readjusted to take into account the VI’s economic reality—post-Irma and Maria—given the territory’s lowered earning capacity.

“Unless these ratios are adjusted, or suspended, the Virgin Islands runs the risk of exceeding the levels set and being accused of defaulting on the terms of the [Loan] Guarantee. In addition, the Virgin Islands would be accused of defaulting on the conditions that was set out in the Protocols for Effective Financial Management.”

Crown wants to talk – Premier

"They didn’t say they are willing, they said they are willing to talk about it," Hon Fahie said concering the UK correspondence.

The Premier noted that if the VI agrees to the loan guarantee and the loans, the VIP administration has a mission to make sure that the conditions are favourable, to prevent fiscal deficiency.

At the Virgin Gorda meeting, he further said, "Everybody is listening along those lines, which they should be. I am not going to let anybody make me afraid to speak on behalf of the people of the Virgin Islands, but I am going to do so respectfully."

9 Responses to “Premier mum on UK response to loan guarantee concerns”

  • black n wite (27/08/2019, 12:01) Like (3) Dislike (1) Reply
    Mr Primier pls make sure its all in black n wite when it comes to Uk business. we aint gon geh trip up in dis deal
  • pat (27/08/2019, 12:21) Like (6) Dislike (10) Reply
    just do not sell us out like Mr. ZZZZZZZ did
  • Skeptical (27/08/2019, 12:27) Like (13) Dislike (2) Reply
    Split this money in two. Give RDA half and the Premier half as a compromised. At the end we will know who spent responsibility. When government is in charge the bills double. The estimates double... Contractors / locals Is always trying to rip off the government. NHI is a prime example. My Doctor Visit before NHI was $80.00. With NHI it got doubled. Government did nothing to rectified this problem. They just pay the bills. Now NHI don't have money.. I'm afraid that the same thing will happen if government is incharged of this money. They will just pay the bills no matter how ridiculously high they are... But like I say as a means of comprise split the thing.... Then we will know who can and can't be trusted.
    • @Skeptical (28/08/2019, 06:28) Like (0) Dislike (0) Reply
      Agree 100% Enough example around us. Purcell Ghut millions still unsolved.. High school wall excessively high cost still unfinished.. Sea cows Bay wall, Hospital, Pier park all excessive in cost. 7 million burnt up tax payers cash in Airplane. That's government. . like u say. They just pay the bills. No questions. No investigation. VIP NDP the same they all have their cronies their favourites their cut backs... I have to agree base on government track record handling this much money is not only scarey but risky.
  • Still tong (27/08/2019, 18:51) Like (1) Dislike (3) Reply
    At least he not like Myron chating chating all the time
  • Smitty (27/08/2019, 22:16) Like (0) Dislike (4) Reply
    This Premier have a big heart. I hope his good intentions work out for all a we. We have serious situations to make with the Uk loan and RDA thing. We already doing the fasttrack Belongership thing now to make the UK happy. In weeks we will have thousands of new Belongers as a deal to keep UK happy. We are selling ourselves out making hasty immigration decisions to satisfy UK.
  • ABC (28/08/2019, 07:11) Like (0) Dislike (2) Reply
    We trust Hon Fahie


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