World press describes loan approval as bailout
(CNS): Despite repeated comments in both the local and international media by Leader of Government Business McKeeva Bush, CIFSA Chairman Anthony Travers and a number of other pundits, the borrowing that the UK has now permitted the government to access is still being described as a bailout in the headlines overseas. Earlier this week, two of the UK’s leading newspapers on opposite ends of the political spectrum inferred the UK was propping up the territory, a message which has now spread across the world.
Although the Daily Telegraph said the loan was commercially-funded, the reputable broadsheet suggested that Britain would be “likely to end up footing the bill in the event of a default by the jurisdiction". The Foreign Office is understood to be concerned that the Cayman Islands could trade on Britain’s reputation to secure loans that it cannot afford – making its approval for the loan a tacit guarantee.
While a number of other media used the term bailout in its headlines, the Investment International called the UK approval “a financial life line."
Meanwhile the Guardian which has shown particular interest over the last few weeks in Cayman’s financial situation, reported that Bush had told “Cayman Islanders that a financial rescue package with the Foreign Office had been reached”, even though the paper was reporting on Tuesday’s public meeting where Bush once again reiterated that Cayman has not taken a cent from the UK.
The idea that Cayman and other territories could cause future problems for the UK government is behind the sentiment which, according to reports in yesterday’s Financial Times, was taken to the extreme by Lord Myners, the City Minister, who compared offshore centres to Afghanistan and Columbia. "In the same way as we are having to wean the farmers of Afghanistan off the poppy and the farmers of Colombia off coca, we have to wean offshore financial centres off tax if that is the only source of competitive advantage that they offer," he said.
Following the Cayman Islands government falling foul of the PMFL, the need to get local borrowing approved has placed Cayman in an awkward position internationally, but Bush told the FT, "We do not intend to become a poor house in the region due to the whims and fancies of anyone, anywhere."
At Tuesday’s public meeting the LoGB emphasized that he would be getting Cayman out of the current financial situation, which his says is the fault of the previous administration’s mismanagement, and back to the confines of the Public Management and Finance Law, negating the need to get any permission from the UK ever again.
Category: Business
But the 9:11 post is right, there is nothing wrong in what The Telegraph reported. Cayman based posters have been saying how dire things could be in Cayman but someone from the outside can’t say it?
So true about the governor….It is time to start exposing the governor as he always seems to get away with everything. No wonder the UK can get us in a corner when she wants to..she has the most powerful locally in the Governor!
intl newspapers also have their own political lean to so remember that. what they do is not simply a mistake.
What these two mighty British newspaper editors fail to mention, is the absolute dire straits Great Britain is in herself. ( As it happens the worst position amongst the G20 countries).
There is already talk between both opposition parties, of major government spending cuts, on a similar scale to what happened in Canada in the early 90’s.
We are not talking about simple changes in policy here? (or reducing cell phone usage, or the use of company vehicles). Both parties are agreeing there will have to be huge painful spending cuts, and the Public Sector will be reduced in size over time of anywhere between 8-10%. ( Sound similar, Cayman?).
There is also concern that new legislation brought in by the G20 to monitor and control banking bonuses, could turn the London Financial Sector into a ‘ Ghost-town’. There is already talk of a number of hedge funds relocating to Switzerland ( why not the Caymans?).
Hang in there Cayman, and dont worry about anything these Etonian English twits write. The ‘ Mother Ship’ is going down, Cayman has to be careful she doesnt take Cayman with it…..
After the hatchet job that Mckeeva Bush did on these islands with his constant shouting out to the world that the Cayman Islands is broke, did we expect anything else? If I tell a stranger that the inside of my house is dirty, that stranger will tell everybody that the inside of my house is dirty! Obvious, isn’t it?
The world constantly heard from the leader of this country that we are broke, we couldn’t afford to pay civil servants (except the elected chosen ones), we couldn’t afford $100,000 to hold a beauty pageant, & we could no longer pay bills. Well, the world press accepted that what our leader was saying was true (not realising that he was playing politics), & they ran many stories making fun of the once "mighty & rich" Cayman Islands. What did the ignorant Mr. Bush expect? Then he started to complain about the coverage that he generated! Holy cow, what a nut!
The major problem though, was that not only did the world press hear Mr. Bush’s irresponsible shouting, but so too did:
1/. foreign investors who started to question their future here,
2/. so did prospective foreign investors who did immediate u-turns & decided not to take the chance of investing in a bankrupt country,
3/. & so did locals who decided that if the country is broke that it would be best not to spend their money, & the economy suffered even more!
Because Cayman is bankrupt according to our very irresponsible leader, it is no wonder that the world press considers this money as a bailout! After all, they are simply believing what our leader has told the world. What a nut! How stupid & irresponsible!
Wonder why the Caymanian Compass couldn’t write an editorilal using 98% of the facts from this post. Sadly it won’t happen for obvious reasons.
Mac, you are relying on people on do not mean the Cayman Islands any good. Why have you (by perception) replaced the Financial Secretary with Mr. Paul Byles? On what basis is Mr. Byles qualified to guide our financial policies?
You can do better than this Mac!
I agree. Running a political campaign may generate big IOUs, but what real qualifications are there to justify the expenditure of public money? How much money is being spent anyway? One suitcase full, two suitcases full? more? Who is accountable for what Cayman is getting for all this money?
The Telegraph’s statement looks 100% accurate.
It should be the Governor’s responsibility to correct statements like these….we have heard him in local luncheons say he believes in the “Caymon Islands” and that the UK does not want to destroy the Financial Industry.
If He does not issue a press statement to the contrary by Monday, I have to believe that He supports the sentiment of the UK Press.
Let us see if Mr. Jack also believes what was said or if He will correct it. His response, or lack thereof, will answer the age old question…..whose side are you on???
Well I won’t be holding my breath for that one – whenever the shit hits Jack tends to bury his head in the sand and pretend it aint happening… just like he failed to uphold the constitution recently, I doubt he’ll step up to the plate and defend the country against the international media – Travers seems to be the only person capable of doing this effectively to date.
As a Caymanian I am not sure whether to be angry or sad.
Since Wednesday evening we have known that if the government had simply come up with a common sense budget in the first place then none of this embarrassment for Cayman would ever have happened. All this panic was manufactured as a political stunt. The UK approved a common sense budget that did not have all kinds of ridiculous new spending on docks and ports which we cannot afford at this time.
Mac if you were trying to impress me by playing this stupid game of pretending that Cayman is broke so that you can force through your pet projects then you have failed. I blame you and your advisors for disgracing my country. I forgave you for the stupid projects that you started in the past and for the status grants and supported the UDP. Never again!……never again!…..never again!
The UDP needs a new leader – one who is competent – and we need him or her before the new Constitution comes in!!!!
Anyone, who thinks, Big Mac is pleading poverty as some kind of political stunt for his own gain, is quite frankly DELLUSIONAL.
Anyone, who also thinks the UK, is attempting to preserve there own finanical sector, and shut down other territories, to preserve their own tax income. ( IS NOT SO DELLUSIONAL).
1. The world economy, had a major heart attack, at the start of the year. We were on the precipe of the abyss.
2. The world economy is recovering slowly, ( or is it?)
3. There has been an economic party for the last 10 years globally. However the facts are clear, that none of it, was in fact sustainable.
4. We are now waking up to an almighty hangover after the party, only this time it could take years to get back to normal. Major world economies, are now having to restructure to survive.
Lay off MAC, it aint fair, this guy is the best and only leader for Cayman just now, and I wish him luck!!!!
But Mr. Bush, be careful, with that Public Spending. This economic ‘ Ivan’ is not over yet, and you need to be very careful with that public purse.
Good Luck!!!
Get your computer company straight – clearly what Mac is doing is not DELL-USIONAL it is MAC-USIONAL
Sorry – Until recently I was a UDP supporter but having seen what has been going on in the past few weeks with the politicisation of the civil service, the budget mess, and our own politicians creating opportunities for the international media to laugh at us, I have lost all confidence in him. I think that it is time for the old guard to fade away and allow younger educated Caymanians to lead Cayman.
Why should we lay off Mac, if Mac won’t lay off Kurt? Don’t be so silly.
This is proof enough that all of Mr. Mac Bushs protests over the past 4 months was unnecessary & uncalled for. This is proof that we could have arrived at the point we are now at without all the fuss. Mr. Bush hurt this country in his ridiculous attempts to hurt the past administration. All of this embarassment could have been avoided, & we would be viewed more favorably by the rest of the world, ahhhh alas, but for Mr. Bush. I pray for Cayman.
As a UDP supporter I have to admit that in my view this is entirely the fault of Mr. Bush and his Fire Ready Aim approach to problems. If he had not decided to convey to the world that Cayman was broke then none of this would have happened. Clearly when the leader of a government tells the world that his country is broke and that he is having to go to the UK to get access to money to keep the country going, then it is logical for the media to take him at his word.
It may be that Mac and his oh so clever advisors did not consider that laundering Cayman’s dirty laundry in public would destroy the credibility of Cayman in the international community in general and the financial services sector in particular. That is no excuse – they should have.
Can we go back to May and have a "do over" please.
Rollie where are you. Your country badly needs you.
Its Called "Transparency" you cant deceivethe world, the truth eventually comes out so "hush talkin garbage"
Disclosures about condos at the Ritz and exclusive real estate deals might qualify as being related to Transparency. Telling the world, "weez broke" is just plain stupid.
It’s good to hear that opinion from you, because I was thinking that I was the only UDP supporter to feel that way. I certainly will not support the PPM because of their lack of leadership, but I have become disillusioned with the UDP, & quite frankly I no longer have faith in any of the elected UDP members because they have proven themselves to be "yes persons" & it will do no good to change leadership because that will be like swapping "dog with puppy" quite literally. AS a UDP supporter I am fed up, & I would now consider supporting a third party, one that does not have a dictator & puppets.
You know, when your mate does nothing for you but wear you down, you divorce.
It is a pity that we cannot do that — it certainly feels like it is long overdue.