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VI to petition UK to amend Financial Protocols due to COVID-19

- in order for Territory to secure immediate relief funding
The Government of the Virgin Islands will be seeking to negotiate with the Government of the United Kingdom for certain terms of the Protocols for Effective Financial Management (PFEFM) to be relaxed to allow Government to freely seek immediate relief funding in light of the negative economic impacts of the COVID-19 pandemic. Photo: Internet Source
Premier and Minister of Finance, Honourable Andrew A. Fahie (R1) said Cabinet has agreed to instruct the Financial Secretary to lead technical discussions with the UK Government’s financial technical team in petitioning the Secretary of State to relieve the Government of the Virgin Islands of its obligations under Section 20 of the Protocols for Effective Financial Management and the review and amendment of Sections 25, 27 and 28. Photo: Facebook
Premier and Minister of Finance, Honourable Andrew A. Fahie (R1) said Cabinet has agreed to instruct the Financial Secretary to lead technical discussions with the UK Government’s financial technical team in petitioning the Secretary of State to relieve the Government of the Virgin Islands of its obligations under Section 20 of the Protocols for Effective Financial Management and the review and amendment of Sections 25, 27 and 28. Photo: Facebook
Financial Secretary, Mr Glenroy A. Forbes, left, is to lead technical discussions with the United Kingdom Government’s financial technical team in petitioning the Secretary of State, Mrs Priti S. Patel, to relieve the Government of the Virgin Islands of its obligations under Section 20 of the Protocols for Effective Financial Management and the review and amendment of Sections 25, 27 and 28 of the Protocols. Photo: Facebook
Financial Secretary, Mr Glenroy A. Forbes, left, is to lead technical discussions with the United Kingdom Government’s financial technical team in petitioning the Secretary of State, Mrs Priti S. Patel, to relieve the Government of the Virgin Islands of its obligations under Section 20 of the Protocols for Effective Financial Management and the review and amendment of Sections 25, 27 and 28 of the Protocols. Photo: Facebook
ROAD TOWN, Tortola, VI- The Government of the Virgin Islands will be seeking to negotiate with the Government of the United Kingdom for certain terms of the Protocols for Effective Financial Management (PFEFM) to be relaxed or amended to allow Government to freely seek immediate relief funding in light of the negative economic impacts of the COVID-19 pandemic.

One of the terms the VI is seeking relief from is the controversial borrowing ratios imposed on the Territory by the UK in the PFEFM signed into agreement in 2012 by the previous National Democratic Party (NDP) Government.

Speaking during a live COVID-19 update to the Territory today, April 15, 2020, Premier and Minister of Finance, Hon Andrew A. Fahie (R1) said Cabinet has agreed to instruct the Financial Secretary to lead technical discussions with the UK Government’s financial technical team in petitioning the Secretary of State to relieve the Government of the Virgin Islands of its obligations under Section 20 of the Protocols for Effective Financial Management and the review and amendment of Sections 25, 27 and 28.

This, Hon Fahie said, is to, “enable the BVI Government to secure the funding necessary to respond to catastrophic events such as the COVID-19 pandemic, in light of 1. The real impacts and economic forecast outlook for the BVI due to the catastrophic COVID-19 pandemic, 2. The unavailability of grant funding from the UK Government and 3. The impediment the conditions of the Protocols for Effective Financial Management pose to the BVI Government being able to finance immediate relief and economic stimulation programmes on its own.”

Borrowing ratios

Under the current financial ratios, the Territory is required to maintain under the Protocols: net debt of 80 percent maximum or recurrent revenue; debt service of 10 per cent maximum of recurrent revenue; and liquid assets of 25 percent of recurrent expenditure.

It should be noted that if the government violates those limits, it would be required to submit to greater fiscal controls under the UK.

Section 28 of the PFEFM, which is one the sections the VI Government will be seeking an amendment to, particularly states that a breach of the borrowing limits will constitute a breach of the Agreement.

The VI Government has also been trying to get the UK to revise the borrowing ratio for the VI to access adequate funding for hurricane recovery so that it does not violate the Protocols for Effective Financial Management.

This is one of the reasons the VI has not readily accepted the £300m loan guarantee offered by the United Kingdom following Hurricanes Irma and Maria in September 2017.

Premier Fahie has in the past argued that these ratios would be “reasonable” and “healthy, but in the aftermath of two Category 5 hurricanes, “These are not ordinary times and ordinary circumstances.”

The Virgin Islands Party (VIP) Government seemingly views the COVID-19 Pandemic as also not ordinary times and circumstances.

All COVID-19 funding to go to Consolidated Fund

Meanwhile, Premier Fahie also disclosed that Cabinet agreed that any and all funding, aid, assistance, grant, gift or donation, whether monetary or non-monetary, received by or on behalf of the VI from or through any country or government, person, business, institution, organisation/NGOs with respect to the COVID-19 global pandemic, the economic effects of the pandemic or anything otherwise related to the pandemic, “shall be payable into the Consolidated Fund and managed through the Ministry of Finance, in keeping with the Virgin Islands Constitution Order, 2007, the Public Finance Management Act, 2004, and the Audit Act, 2003 to ensure accountability and fiscal responsibility through one single Virgin Islands institutional framework to ensure public accounts accountability, transparency and good governance in the management and auditing of monetary or non-monetary contributions to the Virgin Islands for COVID-19 pandemic.”

He said Cabinet agreed that the Minister of Finance publicly account and report on any and all funding, aid, assistance, grant, gift or donation monetary or non-monetary, received by or on behalf of the VI from or through any country or government, person, business, institution, organisation/NGOs with respect to the COVID-19 global pandemic in keeping with transparency, accountability and good governance.

8 Responses to “VI to petition UK to amend Financial Protocols due to COVID-19”

  • Finally wake up (15/04/2020, 17:07) Like (6) Dislike (0) Reply
    .I kept talking about balance. I saw no balance between social and economical policies / activities. This financial crisis ahead of us will be more impactful than Corona, Every country in the caribbean will be running all over to every financial institution looking for loans, ..Not all will be successful... Brace for the financial crisis...While we fighting Corona and locking the people down the financial industry is been pull from under our feet. U all aint hear the latest scandal concerning Trinidad government officials laundering monies through companies in the BVI. The world will jump on this as soon as things settle.. Them people who telling us what to do lock down the place put curfew on them aint we friend ..They aggressively after our bread..We all know tourism and cruiseship is on longterm sick leave..no one knows how soon they will recover... We need them to recover quickly as a matter afact we need to pray for there speedily recovery..
  • Who this Crisis Benefit most (15/04/2020, 17:23) Like (8) Dislike (1) Reply
    1/ Amazon sales for the last 3 months better thsn their last 3 yrs make them the most profitable company with Valu over 300 billion....2/ China who created the Virus is now the World financial power house, they sell everything corona related, Now all these big countries will have to turn to China for loan...So why the world court cant put something in place to have china compensating all those affected countries...
    • Bigger than you know (15/04/2020, 18:32) Like (14) Dislike (1) Reply
      Knowledge is power. All world leaders have a hand in this. Especially America there want you to believe China is alone to blame. Are you aware the china aired a movie 2 year ago about this same Coronavirus and suspiciously enough china and america had a fall out over money months before the doctor they killed in china blow the whistle on the virus been detected. Look at how lay back America was about the hold thing and now 10s of thousands death in a matter of 2 months. And trump calling the virus a hoax. When there is large sums of money involved they is always a corrupt plot. As you rightly pointed out the less fortunate are suffering as the esteem is climbing in wealth. The rich getting richer and government play blind. Now as you speak about who is guiding them as to how to combat the virus the unofficial case started in January and we were told by April a cure in the form of a vaccine will or should be ready for use to curve the pandemic we still wait now the Director of the world health organization of the Americas is saying cases will increase in the Caribbean in the months to come why you think she so confident about the statement. Base of what government say today that they were given a 4 phrases country reopening plan to implement by whom if not the world health organization. Listen what I know is that at times people dress good but they dont mean well with their intentions. I believe the country need to manage it own risk and stop taking advise or depending on advice from ppl making such a controlled prediction now I called it controlled and only someone with control of what will happen and why it will happen can make such a bold statement like she did. Yes people are scared and looking for answers as to how to defeat this virus. If you ask me when you looking a way out you cant trust the very same thing that start the problem. I am guided in my words but its base on what I see playing out for the pass 4 months surrounding this virus and it's as follows. This virus outbreak didn't start or originate from how the world top medical profession want us to believe cause if so it would have happen long time ago they say the consumption of rear food eating by Chinese everyone knows Chinese eat things others wouldnt eat. Then the virus moved from just basic Coronavirus to a stronger strain label Covid 19 follow me on this. It shut down china and china regain its operations it started to spread country to country kool it so happen the last to be hit seriously was America with now over half a million cases and close to 23 thousand people dead. Now taking you a bit future you all remember Ebola and other virus they say mosquitoes transported and before all a mosquito bite did was sting then it turn deadly. My point it all this things are funded by the rich and powerful using legal channel such as scientist to create theses virus and pass it off as research when the real name of the game is population control. The rich playing God deciding who should live and who should die. So my friend that a tip of the iceberg to show you just how complex this matters are and why the world court is not incline to pursue these issues. It's wrong but when you have people that can cover up they track so good that you believe what they selling is the truth how to deal with that. There is more to this but I will stop here
  • ccc (15/04/2020, 17:56) Like (30) Dislike (3) Reply
    It’s clear the Uk does not care about you people in the bvi
    • @ ccc (16/04/2020, 07:22) Like (0) Dislike (3) Reply
      and the current governor does not either!!!! he is trying to be relevant
    • and (16/04/2020, 16:32) Like (1) Dislike (0) Reply
      Even if they did we would continue to be unappreciative.
      Are they supposed to ?
      Do we care about them?
      Fulfilling responsibilities and mandates on both sides, is what matters
      Does your Elected Gov care about its people or are they seeking to create opportunity for personal financial gain?
  • Head Hut (15/04/2020, 18:42) Like (10) Dislike (2) Reply
    Wishing us luck and favour because we will be needing both. I would surmise that the current Elected does not have a good working relationship with those in the Uk, and too, they have their own country problems ten fold. Every person the UK puts in place in the VI,as a guaranteed oversight the curent Gov boots them out or cause confusion in an effort to do so. This to me would indicate to the UK that our intentions are less than honourable in finances.. Not saying that is the case but it raises suspicions and is not coducive to sympathy and leniency. The previous Gov with diigence and foresight, left a solid reserve notwithstanding Hurricane Irma and a solid Social Security fund. What hapoens to our future after their depletiion?
  • Hmm (15/04/2020, 19:24) Like (0) Dislike (0) Reply
    Good Luck


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