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As pandemic impacts economies globally was VI smart to not take UK Loan Guarantee?

One of the fears of accepting the Loan Guarantee offered by the United Kingdom (UK) was that if the Virgin Islands failed to repay its debt it would lose control of its finances to the UK. Photo: VINO/File
According to head of the UK Statistics Authority (UKSA), Sir David R. Norgrove, the number in work was estimated to be around 660,000 fewer than before coronavirus struck. Photo: BBC News
According to head of the UK Statistics Authority (UKSA), Sir David R. Norgrove, the number in work was estimated to be around 660,000 fewer than before coronavirus struck. Photo: BBC News
It has also been revealed that despite UK Prime Minister Alexander Boris de Pfeffel Johnson stating otherwise, unemployment has risen in the UK since the COVID-19 pandemic. Photo: Reuters
It has also been revealed that despite UK Prime Minister Alexander Boris de Pfeffel Johnson stating otherwise, unemployment has risen in the UK since the COVID-19 pandemic. Photo: Reuters
ROAD TOWN, Tortola, VI- Even while some, for political reasons, have stated that the Government of the Virgin Islands should have ignored all the risks and red flags and go ahead and accept the £300M Loan Guarantee offer from the United Kingdom (UK) following the destructive hurricanes of 2017, statistics are now showing it may have done the right thing as inflation rises worldwide and economies continue to feel the impact of the pandemic.

This would mean that even the Virgin Islands would have found it a heavy burden to repay the loan, especially also with the possibility of rising interest in debt interest payments.

And with the UK having to bear the burden of repayment if the VI was unable to honour its debt, the colonialists might also be grateful that the VI has not yet taken up the offer.

Rising inflation in UK

According to the BBC on Tuesday, February 22, 2022, rising inflation led to UK government interest payments hitting a record high for the month of January 2022.

It said interest payments hit £6.1bn last month, the highest amount for a January since records began in April 1997 and up from £4.5bn last year.

Paul Johnson, director of the Institute for Fiscal Studies, told the BBC figures showed "we are still spending an awful lot more. We are poorer than we were."

Chancellor Rishi Sunak said the government had "provided unprecedented support" through the pandemic.

"But our debt has increased substantially and there are further pressures on the public finances, including from rising inflation," he said.

"Keeping the public finances on a sustainable path is crucial so we can continue helping the British people when needed, without burdening future generations with high debt repayments."

Rise in unemployment in UK

It has also been revealed that despite UK Prime Minister Alexander Boris de Pfeffel Johnson stating otherwise, unemployment has risen since the COVID-19 pandemic

The head of the UK Statistics Authority (UKSA) has said Mr Johnson was wrong to claim more people are in work now than before the pandemic.

Writing to the PM, Sir David R. Norgrove said the number in work was estimated to be around 660,000 fewer than before coronavirus struck.

He suggested Mr Johnson had excluded a fall in self-employment numbers when making the claim.

He warned the "selective use of data" would "give a misleading impression".

Risk of Loan Guarantee not worth it- Dr the Hon Wheatley

One of the concerns of the present and past administrations was that the borrowing ceiling in the Protocol for Financial Management needed to be adjusted as well as some of the terms attached regarding defaulting.

One of the fears was that if the VI failed to repay its debt it would lose control of its finances to the UK.

Speaking in the House of Assembly in December 2021, Deputy Premier  and Minister for Education, Culture, Youth Affairs, Fisheries and Agriculture Dr The Hon Natalio D. Wheatley (R7) said: “We haven’t borrowed anything by this administration and that’s okay because we were executing the $65 million loan [From the Caribbean Development Bank] but we have a challenge as it pertains to the loan guarantee because of all of these conditions which were attached to this loan guarantee which are essentially unfavorable for us.”

He continued: “My grandfather who was the first Minister of Finance for this government back in 1978 or so, and we have a legacy of being in control of our own finances as we haven’t received any grant in aid from the UK in over 40 years. So we want to maintain control of our finances and we fought hard for that and that is something that is important to our progress as a people."

Dr Wheatley had also stated that  it didn’t make sense for the VI to summarily dismiss its concerns about losing its financial autonomy because of a loan guarantee and the conditions attached to a loan guarantee.

22 Responses to “As pandemic impacts economies globally was VI smart to not take UK Loan Guarantee?”

  • Jim (25/02/2022, 19:50) Like (8) Dislike (12) Reply
    This wise decision alone should garente the browser bummer a smooth reelection
  • Xxx (25/02/2022, 19:54) Like (11) Dislike (8) Reply
    The bvi made a good decision bottom line
  • hm (25/02/2022, 22:22) Like (4) Dislike (8) Reply
    This was a loan offered after the devastating cat 5+ hurricane Irma. 5 years later it’s safe to say it was never about recovering from Irma. The UK tried to play us at our weakest.

    The borrower is slave to the lender. Nothing new same old story. We’n forget how it played out with jaspert pushing this loan on Andrew to sign like it was his sole mission & calling the COI during a global pandemic after not getting his way. How’s that caring about our recovery...
  • T (26/02/2022, 03:29) Like (14) Dislike (2) Reply
    Have you never heard of forgiving of DEBT / Write oof DEBT . ?
    • @ T (27/02/2022, 06:19) Like (0) Dislike (0) Reply
      the UK cannot afford to write off any debt, they would have took the BVI.

      Thank God for Andrew Fahie. history will show that he saved the BVI
  • Ukraine (26/02/2022, 05:56) Like (8) Dislike (0) Reply
    The BVI financial and legal system protects Russian oligarchs and Russian assets which have been obtained through the Putin regime. This is well known. What is the BVI doing to stand with Ukraine, what sanctions will the BVI government impose? Why have the government not made any statement?
    • huh (26/02/2022, 18:01) Like (0) Dislike (0) Reply
      Stand with ukraine you say huh. Meaning keep hyping them up to fight a war they cant win and lose lives instead of doing whats best for their country.
  • snsn (26/02/2022, 06:23) Like (0) Dislike (0) Reply
    so our leaders are psychic now or perhaps God told them what was coming?!
  • Really (26/02/2022, 06:46) Like (2) Dislike (7) Reply
    Let me wake up some of you sheeps out there. The Elites bloodline the Rothschild family owns the bank and they put the banks in every place in this Earth to Control you and have you in bondage forever because money runs this Earth. Elites own all governments and everyone else in this devil's world. All governments is run by them every country,every states no exceptions so if you think the government is paying for anything your absolutely dumb. The government does freemason rituals and if I talk the truth Vino censor me so I don't know if this comment will make it. The government don't pay for nothing they get everything for free. If you own a business are you going to pay for everything you want from there or are you just going to take it? Look at all the flags and you can see who runs everything. Signs symbols and numbers rules this Earth and if you have knowledge, wisdom and understand you can see it in plain sight. Stop being gullible nothing has change with both parties
  • ... (26/02/2022, 06:46) Like (2) Dislike (0) Reply
    Take the money and run
  • Road Town Rebel (26/02/2022, 06:54) Like (4) Dislike (7) Reply
    The many wats to trap you in the Colonial snare and make you submissive to their beck and call. The VI did tgs right thing. It wasn't about the murderous UK. It was about our survival as a people.
  • Island Peep (26/02/2022, 07:21) Like (7) Dislike (2) Reply
    Four years later and schools and government infrastructure not rebuilt (and millions in rent being paid to government's cronies)? No, it was a stupid decision and almost as bad as not insuring Government properties. Foolishness.
  • HYPOCRISY UNLIMITED (26/02/2022, 08:03) Like (0) Dislike (0) Reply
    SIMPLE , DRUGS , GUNS MURDER etc, WITH THIS CLANDISTINE OPERATION THATS GOING ON NOW , COCAINE HAS TAKEN ROOTS , SADLY THE YOUTHS ARE SOME OF THE ROOTS AND THEY ARE TAKING OUT EACHOTHER EAST & WEST SIDE ,SO THE IF THE DRUGS LORDS ARE PAYING FOR PROTECTION FOR THEIR GOODS TO FLOW THROUGH SAFELY , THEN THEY DON'T NEED ANY UK MONEY
  • Power and Control.. (26/02/2022, 09:26) Like (5) Dislike (4) Reply
    It was a mistake not to take that money...We needed that money..But our leaders didn't trust themselves, they had no plan and confidence in themselves to invest that money and allow it to work for the betterment of the all of the BVI...They wanted control with no oversight no one to answer to so they can do as they wish...
    • east man (26/02/2022, 13:22) Like (2) Dislike (2) Reply
      A coconut must have hit you in the head. It was the best decision not to take that money. We would of had an albatross around our necks. In order for the territory to grow we had to cut back and slowly rebuild our selfs. NDP wanted that money to squnder. Belive that.
  • Heckler (26/02/2022, 09:51) Like (4) Dislike (1) Reply
    Maybe this is why the BVI is looking and smelling the way it is
  • Psst (26/02/2022, 10:58) Like (0) Dislike (0) Reply
    We don’t need the loan, we got plenty of drug money.
    • Paranoia1 (26/02/2022, 15:44) Like (0) Dislike (0) Reply
      Pablo Escabar..Died Leaving over 7 Billion dollars in Cash as Drugs Money the Banks refused to Handle ..While we refusing Acknowledge.. That the Drug Trade Rivals Certain Unnamed Countries GDP..WHAT WOULD HAPPEN WHEN THE DRUG TRADE IS
      DECRIMINALIZED.!!!!
  • Paranoia1 (26/02/2022, 15:37) Like (1) Dislike (1) Reply
    The Original Conspiracy Theory Stated a Grant not a LOAN...
    AND THE PACKAGE DEAL CONTAINED TOO MANY STIPULATIONS... INCLUDING THE PASSING OF (GAY) RIGHTS LAWS.. IN AN
    SO CALLED CHRISTIAN COMMUNITY..!!!!

    And as for Sanctions against Russian Oligarchs ..IS THIS AN INDEPENDENT COUNTRY CALLED THE (BVI) OR IS IT THE (VI)

    WE CAN NOT EVEN DECIDE WHICH FLAG TO FLY.. EUROPEAN UNION OR BRITISH.... MEANWHILE NATO AND THE EUROPEAN
    UNION IF THEY PUT UP AN UNITED FRONT CAN CRIPPLE THE RUSSIAN ECONOMIC SYSTEM...!!!!
  • ... (27/02/2022, 06:21) Like (0) Dislike (0) Reply
    we support the position of Fahie, we want the money but not the terms and conditions of the money!
  • HAHA (27/02/2022, 11:56) Like (0) Dislike (0) Reply
    Things will only get worse for the UK with an angry Putin on deck. Russia claimed that the UK are trying to use them as a distraction from their current failings.
  • RedStorm (28/02/2022, 01:02) Like (1) Dislike (0) Reply
    They were wise not to become slaves to the master.


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