Premier Seeks UK Approval to Borrow
Premier Dr Natalio Wheatley will ask the UK to relax borrowing limits imposed under the 2012 Protocols for Effective Financial Management during Joint Ministerial Council meetings in London from November 24–28. He says greater borrowing flexibility is needed to fund major projects — including a more than $400 million airport expansion — and to spur economic growth while reducing the Territory’s contingent liability to the UK Treasury.
Premier Dr Natalio Wheatley has confirmed he will raise the issue of relaxed borrowing rules with the United Kingdom during upcoming Joint Ministerial Council meetings in London from November 24 to 28. Dr Wheatley said he plans to press UK Minister for the Overseas Territories Stephen Doughty to revise provisions in the 2012 Protocols for Effective Financial Management that currently limit the Virgin Islands’ ability to borrow for capital projects.
The protocols cap government borrowing at 80 percent of recurrent revenue — a ceiling that equates to roughly $446 million for 2025, he said. “The protocols have placed the Territory in a fiscal straitjacket,” the Premier told reporters, arguing the rules prevent the BVI from borrowing responsibly to invest in growth.
He noted the territory’s public debt is about $170 million, roughly 10 percent of GDP, and said most countries operate with debt levels up to 100 percent of GDP. The Premier highlighted the planned airport expansion — which he said will cost more than $400 million — as an example of a major project constrained by the current limits.
His administration is also pursuing the largest budget in the Territory’s history, a $550.6 million plan for 2026, with large investments earmarked for transport, water and agricultural infrastructure. Wheatley argued that allowing the BVI to invest in growth would reduce its status as a contingent liability to the UK Treasury.
He also cautioned that the 2012 protocols, introduced after the 2008 global financial crisis to prevent unsustainable borrowing and strengthen governance, do not account for more recent shocks such as devastating hurricanes and the COVID-19 pandemic. During the bilateral meeting with Minister Doughty the Premier said he will press for an update to the protocols and also raise issues including governance reform, climate change resilience, constitutional advancement and security matters.
For residents, any relaxation of borrowing rules could unlock faster progress on visible infrastructure projects and local employment opportunities, but it would also require careful fiscal safeguards to manage higher debt levels and maintain transparency. The BVI will await the outcome of the JMC talks in late November to see whether the UK is prepared to adjust the existing borrowing framework.
Primary source: BVI News