-
by pltm
(PLTM) - The National Democratic Party (NDP) administration is still to access a $25M line of credit from CIBC FirstCaribbean International Bank, some five months after receiving the green light from the House of Assembly.
The money is seen as a bail out package for the government amidst financial struggles. Government said the purpose of the line of credit is to provide working capital support.
When BVI Platinum News contacted the Premier's Office last week to ascertain whether government has been able to access the $25M, we were told that information will be made available in the House of Assembly on Thursday, September 22.
BVI Platinum News understands that on Thursday, Premier and Finance Minister, Hon. Dr. Orlando Smith will be back in the House of Assembly seeking another approval with regards to the line of credit. This time, he will move a Motion to make adjustments to the fees.
According to the proposed Motion, the bank and government agreed on September 12, 2016 that the fees to be applied to the operating line of credit be amended. The new proposed facility fee is 0.15% of the total facility amount, payable on financial close. Also, there is a proposed administration fee of US$2,500.00 per annum, payable in advance on each anniversary of the facility.
According to the first Motion in April, CIBC FirstCaribbean International Bank had agreed to grant the operating line of credit of $25M to the government and it was agreed between the bank and the government that the principal repayment is to fluctuate from deposits until maturity, with an annual clean-down of any drawn balances for a period of 3 consecutive business days on each anniversary of the facility.
Previously, the agreed facility fee was 0.35% of the total facility amount payable on financial close; administration fee of US$2,500.00 per annum payable in advance on each anniversary of the facility; and standby fee of 0.75% per annum of the undrawn amount under the facility, payable quarterly in arrears.
Opposition Member Hon. Andrew Fahie had questioned several aspects of the Motion and called for more information.
Members of the Opposition alleged that the line of credit is a clear indication that the government is broke. However, Premier Smith has insisted that it is to ensure that small businesses are paid on time.
-----
Copyright 2023 by Virgin Islands Platinum News. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
