By Hayden Boyce, Editor-in-Chief Turks & Caicos Sun

Lord Ashcroft has asked the British Government about debt relief for the Turks and Caicos Islands, and he continues to raise questions about the controversial $260million loan guarantee, according to official documents from the House of Lords.

On Monday July 21st, Lord Ashcroft, who is an influential figure and significant landowner and developer in the Turks and Caicos Islands, asked Her Majesty’s Government whether there are any proposals to give debt relief to the Turks and Caicos Islands; and if not, why not.

In response to his question, Baroness Warsi, stated: “There are no proposals for the UK to give debt relief to the Turks and Caicos Islands, a British Overseas Territory. The Turks and Caicos Islands are not in receipt of a loan from the British Government. In 2011, the UK provided a loan guarantee worth up to $260 million in response to the Territory’s governance and economic crisis. The British Government expects the Turks and Caicos Islands government to finance its borrowing independently and on an affordable and sustainable basis from the end of 2015/16 without a UK guarantee.”

The 68-year-old Lord Ashcroft, who is one of the wealthiest persons in the UK, also asked Her Majesty’s Government whether there are any proposals to use the sinking fund balance under the Turks and Caicos Islands debt obligations to pay down, to pay off or to buy back existing debt to reduce interest charges.

Baroness Warsi replied: “The UK and Turks and Caicos Islands governments have agreed a framework for management of public finances that includes principles of good financial management as well as the debt ceilings. Key requirements are that net debt is less than 110 per cent of revenue by the end of the financial year 2015/16 and less than 80 per cent of revenue by the end of the financial year 2018/19, and that debt service is less than 10 per cent of annual operating revenue and liquid assets at least 25 per cent of annual operating revenue.”

She added: “The Turks and Caicos Islands government has run a surplus for the last two years and continues to be on track to meet the provisions of the agreed framework document. In accordance with the Turks and Caicos Islands legislation, surpluses are paid into a Sinking Fund. The Sinking Fund may only be used for the purposes of paying down debt. However, how the debt is repaid is ultimately a delegated matter for the Turks and Caicos Islands government.”

Lord Ashcroft also asked Her Majesty’s Government what steps are being taken to promote economic growth in the Turks and Caicos Islands.

The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) replied: “The Turks and Caicos Islands and other British Overseas Territories are small, open and dynamic economies that offer opportunities for investment and trade. UK Ministers and Territory leaders have agreed, through the Joint Ministerial Council last year, an ambitious practical agenda to support our shared vision for the Territories as vibrant and flourishing communities, proudly retaining aspects of British identity and generating opportunities for their people. This agenda includes working together to promote trade and investment opportunities in the Territories, to deliver on the G8 tax and transparency agenda, and to maintain high standards of governance and rule of law. The EU has recently agreed improved market access for Territory services and UK Trade and Investment (UKTI) have opened their overseas market introduction service to Territory companies.”

Baroness Warsi added that the British Government is committed to continuing to build a strong partnership with the Turks and Caicos Islands government to help them develop their economy. Since 2008, she said, the UK has supported far reaching reform, including strengthening of economic governance and the management of public finances, and provided a loan guarantee worth up to $260 million.

“The UK agreed to proposals for the redevelopment of passenger facilities at Providenciales International Airport. The redevelopment should increase its capacity and improve the customer experience. It is expected to be completed later this year. The Government is continuing to support reform in the Turks and Caicos Islands, including through a Technical Assistance programme supporting capacity building work across a number of Ministries (budget of £1.5 million in financial year 2014-15),” she added.

Lord Ashcroft again asked the British Government why they will not place in the Library of the House, the bond document of the loan that they have guaranteed for the Turks and Caicos Islands, as it is a document that is freely available to commercial investors. Baroness Northover said the publication of the requested document is a matter for the TCI Government.

When the question about the loan document was previously asked, Baroness Northover said the TCI Government issued US$170 million of bonds in 2011 under the terms of an Offering Memorandum that was guaranteed by DFID and it would not be appropriate for her Majesty’s Government to place a Turks and Caicos Islands Government document in the Library of the House.

For more on this story go to: http://suntci.com/lord-ashcroft-asks-british-government-about-debt-relief-for-turks-and-caico-p1321-108.htm

IMAGE: www.libdemvoice.org