UK Protocols restrict Territory’s borrowing – Hon Fraser
“I spoke of the ability to borrow up to 30 percent of the social security pension fund without having to seek approval from the British Government,” Hon Fraser said in an exclusive interview with Virgin Islands News Online recently.
“That was removed from us. That would have been somewhere in the tune of $130 million we would have had access to. Right now we only borrowing from Social Security somewhere around $50 million,” he said.
“Having to go to the [UK] to seek approval for every dime you borrow from Social Security or wish to borrow from Social Security was a misstep on the part of this Government,” he said.
Hon Fraser explained that the definition of reserve fund has changed with the coming into being of the Protocols for Effective Financial Management. “The definition for reserve fund is now limited to a single account of the Government dedicated to a reserve fund. Before, reserve fund meant all the monies that Government had in banks, whether it was in the Consolidated Fund of pension fund, disaster fund…any fund. That money was considered as the reserve,” said Hon Fraser.
He said that the NDP government has amassed some $35 million in an effort to become compliant for reserve. “In order to become compliant, this Government would need 25% of the recurrent revenue. The recurrent revenue is $301 million so we talking about something like $75 million so they are way off the mark,” he said. “According to the protocol they have to meet that mark by the end of 2015. I don’t see that happening,” he said.
34 Responses to “UK Protocols restrict Territory’s borrowing – Hon Fraser”
Poor negotiation skills, cause NDP to run the country to de ground, suck it up jack. Your party in trouble don't blame Fraser