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UK Protocols restrict Territory’s borrowing – Hon Fraser

-as a result the VI must run to the UK for approval for every dime; calls it a misstep on the part of Government
Representative for the Third District Hon Julian Fraser, RA said that the Protocols for Effective Financial Management to which the Territory must become compliant has removed every opportunity the country had as far as options to raise money was concerned. Photo: VINO/File
SEA COWS’ BAY, Tortola, VI – Representative for the Third District Hon Julian Fraser, RA said that the Protocols for Effective Financial Management to which the Virgin Islands must become compliant has removed every opportunity the Territory had as far as options to raise money were concerned.

“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”

  • qc (05/05/2014, 08:11) Like (8) Dislike (8) Reply
    aaaaaaaaaaaaah our next Minister of Finance
    • R (05/05/2014, 12:39) Like (4) Dislike (0) Reply
      If that was to happen only then would we all drown in debt
    • Flunk (05/05/2014, 13:52) Like (5) Dislike (0) Reply
      Don't let government touch the SS fund. Thats OUR money. That's our old age security! Don't let these idiots near it - particularly that irresponsible guy from SCB.
      • oh no! (05/05/2014, 15:13) Like (1) Dislike (2) Reply
        Flunk, people like you should stay out of complex matters like finance. Just talking elementary crap bout keep government from SS. Fool do you know that government loss forty million dollars ($40,000,000) in 2008, and it was not to government? Keep your trap shut.
        • Flunk (06/05/2014, 06:47) Like (4) Dislike (0) Reply
          You just proved my point. Government lost 40 million? And you think they are responsible people? Whose got no brains here!
          • Oh No (06/05/2014, 16:25) Like (0) Dislike (1) Reply
            @Flunk; this joke is on you my friend I was just testing your knowledge, now just check the Social Security 2008 financisl report you will see them lost $40,000,000. Government aint loose a cent. You just who I say you were, A FOOL.
  • . (05/05/2014, 08:51) Like (5) Dislike (7) Reply
    The ndp will starve the cattle while the grass remains green.
  • Spy (05/05/2014, 08:56) Like (4) Dislike (5) Reply
    Can someone explain why the government have to go to the uk for permission to borrow........
  • Windy (05/05/2014, 09:08) Like (21) Dislike (0) Reply
    Going to London to get approval keeps the politicians from running an enormous debt up & ruining the territory. It's that simple.
  • Just saying (05/05/2014, 09:10) Like (4) Dislike (10) Reply
    Good points Mr fraser
  • Funny (05/05/2014, 09:40) Like (13) Dislike (3) Reply
    Says the man who could not even access $15mil when he was last in power, now chastising Government LOL!
    • Funny Man? (05/05/2014, 22:36) Like (0) Dislike (3) Reply
      What u mean couldnt access $15 mil? Do you idiots ever stop making fools of yourselves. Mouth opens crap comes out. Learn to use the other part of your body to let out crap, then maybe next time your mouth open sense will come out. Fraser got the $15 mil from Caribbean Development Bank, now it take NDP 2 and half years still cant get it spend. Talk bout incompetence.
  • Act (05/05/2014, 09:55) Like (3) Dislike (6) Reply
    keep informing the people
  • cay (05/05/2014, 10:07) Like (6) Dislike (4) Reply
    remeber some elected fool say this was a good deal for us and dr. smith had them eating out of his hands...shame on them
  • pat (05/05/2014, 10:28) Like (19) Dislike (2) Reply
    given the track record of both parties, I am glad to have oversight. The problem with borrowing is that it has to be paid back. If we were reliable on that score, UK would be more lenient in general. But just because the "money is there" doesn't mean it is meant to be spent on other projects. Fraser complained that the NDP got "his" $15 Mil loan. He wanted to spend it. His personal track record shows a retaining wall, sea cow bay development and other projects without accountability. If govt can prove they are responsible, then approach UK to change the protocol. Otherwise, BVI would be in worse trouble. Just one person's opinion.
    • Learn The Facts (06/05/2014, 16:35) Like (0) Dislike (2) Reply
      You keep comin on here wid your crap bout Fraser and some illegal marina in Sea Cow's Bay which is a Lie. That project was approved by the Executive Council from 2002. Them reclamation work was all privately done. Not a cent of goverment money did any reclamation. Get the facts before coming here bout you cant trust Fraser. Tell us something he did wrong that you can prove. This NDP bull cant fly.

      Poor negotiation skills, cause NDP to run the country to de ground, suck it up jack. Your party in trouble don't blame Fraser
  • Kingfish (05/05/2014, 10:45) Like (23) Dislike (1) Reply
    Fraser is trying to pander to the voters, he knows quite well that in any entity public or private as well as individually that one should not exceed it's borrowing limits.
  • He ? (05/05/2014, 11:06) Like (16) Dislike (3) Reply
    We are not as dumb as you think Fraser! Keep your rubbish down the Bay!
  • power to the people (05/05/2014, 13:46) Like (3) Dislike (8) Reply
    With Fraser we win the NDP must GO
    • @Power to the people (05/05/2014, 15:04) Like (4) Dislike (3) Reply
      You are right, NDP must go back in power. Lord help us if VIP gets back in power..blind leading the blind
      • Virgin Son (05/05/2014, 18:38) Like (2) Dislike (7) Reply
        All the negative nasty comments from the blogging minister will not change our minds Mr. Fraser is well on his way to become the next premier of the BVI…its his just come to grip with it!!!
  • lmao (05/05/2014, 16:37) Like (6) Dislike (2) Reply
    The only point he has is the one ontop his head.
  • goat water (05/05/2014, 16:57) Like (5) Dislike (6) Reply
    Given the track record of the ndp it will be a cold day in hell in the bvi if they return to power
  • she the cat mother (05/05/2014, 19:39) Like (0) Dislike (1) Reply
    wake up BVI things like this will happen all the time if we do not get the NDP out of office
  • UK (05/05/2014, 22:49) Like (0) Dislike (5) Reply
    I have maintained long ago that the time has come for Mr. fraser to lead the BVI
  • may day (05/05/2014, 23:13) Like (0) Dislike (3) Reply
    Congratulations Hon Frazer for taking on the big issues
    • wize up (06/05/2014, 06:40) Like (4) Dislike (1) Reply
      it is frazer and his people them that put "US" in this position("con"-gratulations is the right word, its just a "con"; frazer knowns this...VIP did it to the people of the BVI)
  • wize up (06/05/2014, 06:37) Like (4) Dislike (0) Reply
    it is because of poor government spending by the "Virgin Islands Party" that the "British Virgin Islands" must now seek approval to borrow funds; what a shame!!!!! run quick go talk that, as a matter of fact text 2 of your friends and tell them...

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