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  by pltm
• May 20, 2020
• 11

(PLTM) - Premier and Finance Minster Andrew Fahie have made it clear that his administration will not be heavy-handed when dipping into the Territory's Reserve Fund at this time.

Addressing the issue via a live broadcast on Tuesday, May 19 2020, the Premier said there are persons who are pushing his regime "to dip into the BVI's rainy day savings."

"It is unwise for us to do so to any great degree. We must resist doing this as much as possible because the BVI, as we all know, is prone to catastrophic events as we saw in 2017, we cannot break the piggy bank and spend it all at once," he insisted.

He added, "In any event, we are limited in touching the Reserve Fund because this will compromise the BVI based on the ratios in the Protocols for Effective Financial Management that the former Government agreed with the United Kingdom Government."

The Premier said he wanted to be understood that not just on COVID-19's impact on the economy, but also its effect on the financial position of the government.

He stated, "Because more than 60 per cent of government revenue comes from financial services, it is important for the government to know what COVID-19's impact will be on that sector."

Awaiting Critical Report

He said, at the moment, his administration is awaiting the May report from the Financial Services Commission on the performance of the industry.

"This will make a material difference on government's ability to secure loans to support the forthcoming economic stimulus package, as well as what resources may be needed as a result of the upcoming hurricane season," he pointed out.

Importantly, he said, the government approved a suite of immediate relief measures that the public service and statutory bodies are preparing implementation plans for, while the Ministry of Finance is working out certain financial details.

"I ask the question of the members of Her Majesty's Loyal Opposition and their operatives, "Did you take these factors into consideration when you drafted the pie-in-the-sky shopping list – with no plan for financing the same?"

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