Finance officials are in negotiations with two banks in hopes of consolidating the Virgin Islands’ $106 million national debt, Financial Secretary Neil Smith told the Standing Finance Committee earlier this year.
Mr. Smith said the goal is to reduce the territory’s “debt service,” or the money spent paying back its various debts throughout the year, according to the report on the SFC’s deliberations.
This, in turn, would allow the territory to borrow more money.
Asked by Health and Social Development Minister Ronnie Skelton when an additional loan could be received, “Mr. Smith responded as soon as possible,” the report states.
The territory’s debt is down from the end of last year. In December Premier Dr. Orlando Smith said in the House of Assembly that public debt was $127,741,127. He described the figure as being 81 percent central government debt and 19 percent government-guaranteed debt.
During his budget address in January, Dr. Smith promised that this year government would consolidate $80 million in public debt to make “fiscal headroom” for more borrowing.
When the firm Price WaterhouseCoopers audited the territory’s finances, VI debt was said to be worth about twice as much as the value of reported assets, according to a report of the audit made public last April. The firm said government should take urgent action to reduce its debt.
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