Frett Urges Adjustment to Borrowing Ratio
Financial Secretary Jeremiah G.A. Frett told VINO in London that the Virgin Islands is petitioning the UK to relax the Protocols limiting government borrowing to 80% of recurring expenditure. He said the cap is preventing access to funds needed for hurricane recovery and major projects such as airport development, and that discussions at the Joint Ministerial Council seek greater flexibility.
Frett has urged the United Kingdom to adjust the borrowing ratio that currently restricts the Virgin Islands government from accessing larger loans for recovery and development projects. Frett made the appeal during an exclusive interview with Karia J. Christopher, Director of Communications, at last week’s Joint Ministerial Council (JMC) meetings in London.
Under existing Protocols the territory can only borrow up to 80 percent of its recurring expenditure, a limit Frett says has constrained financing for hurricane recovery and other essential projects. "Currently, especially some of the ratios, the number of things that the government wants to implement, there's not sufficient money to be in compliance with the ratios," he said, explaining that officials are in London to discuss the formulas and petition for adjusted ratios that would provide more fiscal flexibility.
Frett highlighted airport development as a critical priority that illustrates the problem. He described the airport project as being vital not just for tourism but also for financial services and residents’ travel needs. "Once we build an airport, you will see improved development, increased investment, and greater interest from locals in establishing hotels, boutique accommodations, and other businesses that service the tourism sector," he said.
He stressed that the airport proposal must follow a staged process — planning, design, and a comprehensive business case — and that UK approval would be required before major funding can be released. "The airport development of this magnitude will necessitate a significant amount of funding," Frett said. "Given the current structure of the ratios, this project will likely exceed those limits." For BVI residents, a successful renegotiation of borrowing rules could unlock financing for not only airport upgrades but also long-delayed hurricane recovery work, infrastructure improvements, and initiatives to spur job creation and local investment.
At the same time, Frett’s comments underline the need for a robust business case and continued fiscal prudence: any expansion of borrowing capacity will be tied to clear plans and UK oversight. Government officials will continue their discussions with UK counterparts as the territory formally petitions for modified borrowing parameters.
Timelines for any change remain uncertain, and Frett indicated that approval processes and detailed proposals will determine how quickly projects can move forward.
Primary source: VINO