FS advises Gov’t on decreasing debt rate
“The Ministry of Finance recognised that the Government of the Virgin Islands could get a lower debt rate in this economic environment, if they could achieve a lower rate, they would have savings on financial outlays and have more resources.”
Based on Mr. Smith’s initial scan, he said the government could drop the aggregate interest rate one or two percent to gain some savings.
Mr. Smith advised Government officials that medium and long term plans were needed with a national consensus on where the country wanted to go.
“With clear plans in place the government could better organise the type of debt they wanted and it would be a lot easier to convince the people that needed convincing.”
When asked whether there was a model that could be used, Financial Secretary Smith replied by using Singapore as an example, saying that their plans were over a decade.
“They had a work plan that supports strategic plans, but because they planned so far ahead there was no need to accomplish everything in one year.” He continued by saying, “many of the bigger and cautious countries did that as well.”
Mr. Smith told the officials that if the government spent less they would be in a much better position.
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