Turks & Caicos Real Estate Blog
Turks & Caicos Receives UK Loan
2011-02-11 12:51:10 by
As reported by the Turks & Caicos Sun, "The United Kingdom (UK) has agreed to grant and secure a US$260 million loan to the Turks and Caicos Islands as part of a much-needed stimulus package that is designed to boost the flagging economy and return this British Overseas Territory to a path of sustainable economic growth and development.

"The $260million loan, which is the largest single financial injection to Government in the history of this country, is expected, among other things, to assist in paying off most, if not all, of Government’s staggering debts to local and international vendors, improve its cash-flow, and provide the necessary funds and assistance to ensure that the Turks and Caicos Islands ultimately will be in a position to at least achieve a balanced budget, or, at most, a surplus in a few years."

In a press release, the government stated, "The main risk associated with the guarantee is that the TCI Government cannot make capital repayments and interest payments as they fall due, adding that its ability to do so depends on its ability to implement measures so that it achieves fiscal balance by March 2013. Consequently, the guarantee will not be provided until Department for International Development (DFID) is satisfied that the TCI Government has plans in place to raise revenue and cut costs so as to achieve fiscal surplus in the financial year ending March 2013; and is continuing to strengthen its capacity and systems to manage its public finances.”

The UK Treasury has approved the proposal in principle, but parliamentarians will have until February 17 to express any objection.

“Securing commercial lending would be a vital step for the Turks and Caicos Islands,” said TCI Governor Gordon Wetherell. “It would provide the time we need to rebuild financial stability and balance the budget. This guarantee would form an important step in our financial plan, and will help the achievement of key milestones that need to be reached before a date for elections can be set.”