Premier and Minister of Finance Dr the Hon Natalio D. Wheatley (R7), right, has said the Minister for the Overseas Territories, Stephen J. Doughty MP, left, expressed 'openness' to the proposed amendment to the financial protocols that would reduce the mandated liquidity ratio—the minimum reserve of cash and short-term assets—from 25 percent to 20 percent of recurrent revenue. Photo: GIS/File

Premier and Minister of Finance Dr the Hon Natalio D. Wheatley (R7) updated the territory on his recent travel to the United Kingdom at a press conference on December 12, 2025. Photo: GIS

During a press conference held on Friday, November 7, 2025, the Premier expressed that financial management was a concern for the government, and they were hoping to address it in their upcoming meetings with the UK government. He emphasised the need for effective financial management protocols.

He stated that due to the current protocols, the Virgin Islands government must adopt a pro-growth approach. “Part of that pro-growth approach means that we have to make investments that will grow our economy, rather than just being concerned about contingent liabilities to the UK Treasury,” he explained.

Hon Wheatley remarked that the territory is currently in what he describes as a fiscal straitjacket. “We are sitting on liquidity and are limited in our ability to borrow,” he noted.

Constructive agreement 'in principle'

At a press conference on December 12, 2025, the Premier updated the territory on the matter, remarking that a significant outcome involves a constructive agreement in principle regarding the current liquidity ratio requirement.

"The Minister for the Overseas Territories, Stephen Doughty MP, expressed openness to the proposed amendment to the financial protocols that would reduce the mandated liquidity ratio—the minimum reserve of cash and short-term assets—from 25 percent to 20 percent of recurrent revenue."

Premier Wheatley said this consensus marks a pivotal step toward balancing fiscal prudence with the Territory's need for greater budgetary flexibility to fund crucial capital projects and drive economic diversification.

"The reduction is recognised as reflecting the sustained fiscal maturity and improved financial management capabilities demonstrated by the Overseas Territory governments."

The Premier said his government also recognised the need for further investment in law enforcement, and social resilience and youth development. 

"We are engaged in further discussions to formalise the implementation of this change, reflecting the JMC's commitment to a partnership built on mutual respect and shared responsibility for sustainable development."

See link to related article:

VI to discuss borrowing protocols with UK to come out of 'fiscal straitjacket'