By Aleem Khan From Breaking News Trinidad and Tobago

Like Trinidad & Tobago, the Cayman Islands is one of the strongest economies in the Caribbean. Unlike T&T, however, the new Cayman Islands “government has a proactive strategy to reduce the debt, which is now KY$532.4 million compared to KY$573.8 million in 2012/13.” The Cayman Islands dollar is stronger than the USD (approximately KY$1=US$1.22).

The chain of islands also expects to report a surplus at the end of next month, after growing revenue and reducing expenditure.

In a statement to the British overseas territory’s Legislative Assembly, Cayman Islands Premier Alden McLaughlin said Thursday (May 29) the territory also expects a surplus at the close of its fiscal year on June 30, 2014. McLaughlin was giving an account of his government’s first year in office.

The premier provided the following improved financial results.

The surplus of the 2013/14 budget is expected to be KY$108.1 million (entire public sector), which is KY$7.9 million more than the KY$100.2 million originally budgeted.

For the fiscal year ending June 30, 2014, Core Government’s Operating Revenues are forecast to be KY$652.1 million, which is KY$7.4 million more than the KY$644.7 million originally budgeted. This is also KY$31.3 million more than the previous year’s revenue.

Total Operating Expenses for Core Government at June 30, 2014, are expected to be KY$547.7 million, KY$1.5 million less than budgeted and KY$13.3 million less than the previous year.

The Cayman Islands expects to have an improved cash position at the end of the fiscal year. At June 30, 2014, the country’s cash balances are expected to increase by KY$53.8 million to KY$173.6 million.

Also, the Cayman Islands’ Ministry of Finance successfully re-negotiated lower fixed interest rates for the remaining terms of five of its loans with local banks. The lower fixed term interest rates range from 1.25% p.a. to 2.71% p.a., down from levels of 2.82% p.a. and 4.25% p.a.. The government will yield approximately $6.2 million in interest cost savings over a 10-year period.

For more on this story go to: http://news.co.tt/public_html/article.php?story=2014060107552990