VI can flexibly 'breach' financial protocols to borrow $$$ - Gov Jaspert
"It has been suggested publicly that these act as a barrier to the government's ability to deliver an economic response to COVID-19. The protocols have the sole purpose of ensuring sensible management of public financing and accountability to the public"
"By having them in place, the BVI is sending a clear message to potential lenders and international partners and most importantly to the people who live here, that we are committed to sensible borrowing and spending of public funds."
He said in practice, the protocols were about making sure that governments don't spend and borrow what they cannot afford to, hence, the protocols' guidelines to ensure the VI's financial safety is intact.
'No Evidence' - Gus
Premier and Minister of Finance, Hon Andrew A. Fahie's (R1) contention is that the protocols have hampered the ability of the Government to seek out loan funding to help the local people and stimulate economic activity.
He said the Government's ability is, therefore, "constrained by certain conditions in the Protocols for Effective Financial Management due to conditions agreed to and signed to by the former Government. Your new Government has been trying since last year to renegotiate more favourable conditions."
However, even as the VI government has listed several concerns regarding the protocols and its ability to access financing, the Governor has rebutted those claims.
According to the Governor, "I've not seen any evidence to indicate that they hamper the government's ability to bring forward an economic package for the people, from what I understand the BVI's reserves are in a healthy position, over $80M according to the budget estimates announced late last year."
The Governor said the Fahie administration must, therefore, put forward its proposals to the UK about its OCVID-19 economic package plans.
'Temporary breaches' allowed - Gov Jaspert
However, even as the Governor cited no evidence that the protocols are hampering the Virgin Islands' borrow capability, he said it offers flexibility where the VI and UK government can agree to "temporary breaches" as in the case when the VI government needed to borrow large amounts of money in exceptional circumstances.
"The UK is committed to supporting each Territory through this crisis and is working hard to understand and meet any needs on a case by case basis. I hope that our government will soon enter discussions with the United Kingdom Government on their economic plans for the Territory, including any concerns over the protocols," he said.
The Premier has repeatedly said that in order for the VI to go ahead with any strategy where it breaches the protocols, the UK must agree to it in writing, which to date has not happened.
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10 Responses to “VI can flexibly 'breach' financial protocols to borrow $$$ - Gov Jaspert”
NO Michael Bluffer governor moving more like a sniper trying to undermine the government trying to put the people against the premier ,84 million in reserves but he not saying how much the government owes in loans that have to be paid governor since you so bright can our reserve cover what we owe plus spend like normal ,your UK government scrambling to find funds and cant even offer a stimulus package of its own people beyond 3 months and they have a healthy reserves. When our reserves dried up and in s**t creek what then UK control we not going back under that system you trying to divide opposition be careful you light the match he throwing the gas . If it was up the governor we would have been in lock down all now with soldiers at our doors .People be watchful what we have is to much for some that dont share our culture, dont get fast track by the hype we elect VIP not Jaspert we have our own knight this our destiny. My people open your eyes they trying to come in from the back door.
People in such high capacity should not encourage any breach of any kind. This is tantamount to telling someone they can break the law and not be punished.
For those who have children, if your children' misbehaved they are punished. So the protocols are breach and we really believe there will be no repercussions.
The Premier has been asking for clarity since he was in the opposition, We all know this, So this is not a stalling tactic.
Wise up people, think for your selves.