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

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

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."