Borrowing Committee to be established to secure all loans under UK’s loan guarantee
The Borrowing Committee will make sure that BVI can get the money, but will have no control how much from this money will go into corruption as usual and how much of it will really be used to recover the island and to benefit the BVI itself.
An eight-member Borrowing Committee is expected to be established in the British Virgin Islands to secure all funding under the UK Loan Guarantee on the behalf of government.
This was revealed in the latest Cabinet post-meeting statement dated September 26.
The post-meeting report said Cabinet had approved the establishment of the said committee which will be chaired by the Financial Secretary, Glenroy Forbes.
“The Borrowing Committee will be the sole entity authorised by the Cabinet of the Virgin Islands in collaboration with the Ministry of Finance to source and negotiate loans under the ‘Guarantee’, pursuant to the implementation of the revised Recovery to Development Plan (the ‘Plan’), as amended by the Cabinet and the House of Assembly, and all other borrowings for recovery and development,” the statement said.
It also said the committee will be tasked with reviewing the terms and conditions of loans offered by lending institutions to government, as well as all borrowing presented by the Minister of Finance, Andrew Fahie.
It further said any amendments to the terms and conditions of loans offered by lending institutions under the Guarantee as well as other borrowings which fall under specified stipulations will be recommended to the Finance Minister by the committee.
The eight-member panel will also recommend the most appropriate loans including those with the most favourable terms and conditions to the Cabinet through the minister.
The committee will be guided by the Virgin Islands Public Finance Management Act and any other relevant legislation and regulations of the Virgin Islands.
The full composition of the Borrowing Committee is expected to include the Financial Secretary as Chairman, Permanent Secretary in the Premier’s Office, the Attorney General, a nominee by the Opposition Leader, a nominee representing the Business Community (appointed by Premier), an External Regional Leader (appointed by Premier), a representative from the BVI Banking Association and a Secretary from the Premier’s Office.