TURKS AND CAICOS GOVERNMENT EYES BORROWING

The Turks and Caicos Islands government has announced a major shift in its fiscal policy, which will see the UK Overseas Territory taking out loans on the capital market for the first time.

Making the announcement, the TCI Premier Washington Misick underscored his ruling Progressive National Party(PNP) government’s financial management saying: “This government realised that if we’re going to make the progress that we need to make, we can’t have a platinum credit card in our pocket by way of the credit rating that we have and have no debt.”

TCI was recently upgraded by the global credit rating agency Standard and Poors (S&P) from BBB+ to A-/Stable/A-2. Responding to this development in February, the TCI government said, “The stable outlook reflects balanced risks over the next 24 months and recognises TCI’s strong institutions, sustained economic growth, and robust fiscal performance.”

The S&P assessment also stated: “The Stable Outlook reflects S&P’s view that strong economic performance and institutional stability will continue to support asset accumulation, helping to mitigate risks associated with TCI’s small, open, and tourism-dependent economy.”

When the Premier outlined his administration’s $550 million budget on April 2nd, it was not indicated how much the loan uptake was likely to be. However, it was hinted that the government was considering “a substantial amount” to fund major infrastructure projects.

In his pre-budget debate presentation on April 2nd, Premier Misick broadly indicated “some four or five different priority areas” under consideration to be supported by borrowings from the capital market.” He also cited “the need for infrastructure expansion, for digitisation, including fibre network and the National ID. If we look across infrastructure and also include things like solid waste management, and the need to improve access to proper housing, this government is going to the capital market to raise a substantial amount of money.”

Further details are expected when the TCI government’s budget is debated on April 20th.

“Let me make it clear, we will not mortgage the future to satisfy the present, nor will we retreat from necessary investment out of fear, “ Premier Misick affirmed.

Michael L. Jarvis London UK