Cayman Finance urges government to cut debt

| 03/08/2011

(CNS): Although Cayman Finance has offered a cautious welcome on the expansion of the country’s GDP revealed by the economics and statistics office on Friday the local industry body also noted the various negative aspects of the latest results. Last week the ESO published the first quarter report for the 2011 calendar year and announced that GDP had expanded at an annualised rate of 1.2% .The rate compared well with growth in the UK of 0.5% and that in the USA of 0.4%. Despite other positive results, such as the increase in air arrivals and new company registrations, Richard Coles the chair of Cayman Finance urged government to do what it could to reduce the country’s debt.

“When we look at the financial mayhem in the USA, Greece, Portugal and even in the UK we should not be too despondent however we have to be realistic and examine the areas where we are not doing so well,” he said drawing attention to the various negative results from the continuing fall in work permits as well as the declining in mutual funds, bank and trust registrations as well as the increase in public debt.

Coles also call on the country’s leader to harness the existing expertise in the country’s financial services sector to promote the industry.

“Cayman Finance has been encouraged that Premier McKeeva Bush has struck up a good relationship with the new coalition ministers at the Foreign and Commonwealth Office in London but it is clear that government borrowing remains an issue. We urge The Premier to harness the expertise of our very sophisticated financial sector and aggressively promote the virtues of Cayman throughout the world,” he added.

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Category: Finance

Comments (18)

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  1. Anonymous says:

    The pork project must go.  Cut all unnecessary projects and personnel. Cut all MLA salary by 1/2 and get rid of all the perks for the Premier.

  2. Anonymous says:

    CIG should privatize/sell Boatswain's Beach/Turtle Farm and Cayman Airways – we could immediately save tens of millions a year and could finish higher priorities like the much needed schools (which should be teaching young women about family planning) and/or pay down our national debt and service ratio.  


    • tim ridley says:

      Given the (likely) financial position of all these operations, the Government would be very unlikely to generate anything much from the sales, but at least the future losses could perhaps be stopped. But no worthwhile purchaser would take on these businesses without somenice back up guarantees from, or put backs to, the Government (that would be real contingent liabilities). A great example of how these things tend to work was the sale of Air Jamaica to Butch Stewart et al a decade or more ago.


      Tim Ridley

  3. Fairplay says:

    I am very disappointed by Cayman Finance  blandly stating that Government should reduce its debt without suggesting how this could be done.

    The recent squirmishes between the UK and the Cayman Government was NOT about Government borrowing as Mr Coles is quoted above as saying: the tension was about CI Government needing to reduce its planned expenditure levels!

    Informed readers will know that Government's present budget does not contain any provision to borrow during this budget year – so borrowing could not have been an issue for the present year as the Cayman Finance Chief is attributed to be suggesting.

    UDP fans please do not cheer from anything said so far – I'm just trying to be fair!

    So, how can Government reduce its present debt level.

    There are a few ways:

    * sell-off public assets and use the money from the sale to pay-down or pay-off, debt;

    * Government could increase taxes and use the extra revenue to pay-down or pay-off, debt; and

    * do not do any of the two previous points but simply continue paying-off debt in accordance with the various debt agreements – a process, I would imagine,  that will take quite a number of years to see any big drop in debt.

    Which one(s) would Cayman Finance suggest?

    Enquiring minds wants to know!!


  4. Anonymous says:

    read the miller shaw report!

  5. Debt says:

    Of course we need to cut our debt and curb our spending!!!  But this is not realistic to our politicians who splurge on private jet travel, slush funds, and contracts for cronies.  I'm sorry, but fiscal responsibility has no focus from our career politicians.

  6. Libertarian says:

    To cut debt is serious business, because at the end of the day, will jobs be created and will the local people be able to create and sustain their businesses.

  7. Anonymous says:

    Cayman finance should be calling for the removal of mckeeva bush…….

    • Libertarian says:

      But like other commenters have said, to be replaced by whom?  The two-party system to me, looks out for their own interest and not the people's interest once they are elected in power. After that, no one can tell them a thing!

      • Anonymous says:

        Replace him with and educated, intelligent individual, with foresight and the know-how to get things done/moving.  We are tired of hot/cold, on/off, we want action, which he is incapable of bringing tothe forefront. It doesn't matter which party, as long as we get our country onthe right track.

        • Anonymous says:

          But what would you have the new person do?  The one think to give credit for currently is between the new Dart project, Shetty Hospital, Tech Zone, new harbor, EE marina, etc there has been a lot of effort put forward and things in the works for a lot of new private investment which is what we need.  The government is pretty broke so they cannot afford big projects to stimulate the economy.  So attracting private investment is really the key.  Some projects I'm very against personally but at least there has been great effort to find some and if some can come to fruition they could really help to get the economy growing at a faster pace.

          • Anonymous says:

            McKeeva would be pushing for these things whether there was an economic crises or not

            • Anonymous says:

              1) Is that a bad thing?


              2) Even if it is, is that still relavent since we are in such a situation?

              • Anonymous says:

                Therefore I don't think credit is deserved if I did support these projects

                • Anonymous says:

                  Fair enough.  I could care less who gets credit for what as long as progress is allowed.

        • Anonymous says:

          We need a systemic change in our government, not just a change in leader.  Even if we get a better leader next time, we will get another McKeeva Bush again some time down the line.

          Right now, if we wil continue with a two party system there will never be debate.  There will always be a majority government, the non-majority party MLA's might as well not turn up to LA meetings.  There are no checks and balances other than the governor.  Its a bad joke.

      • Anonymous says:

        What do you mean replace with him whom?! You seem to think he's the best we've got. Just about anyone else would be better.