The Anguilla House of Assembly has given its approval to three motions to authorise the Minister of Finance to borrow money to meet various financial requirements.

Introducing the motions on Friday, December 4, Minister of Finance, Victor Banks, said the first motion was an overdraft facility for a 20 million dollar loan from the National Bank of Anguilla.

Minister of Finance delivering motions

He said the second motion was for 49 million dollars. Part of this would go towards paying off the balance on the 20 million on the existing overdraft facility which would make it a long term loan to the Government of Anguilla with more reasonable terms of repayment. The second part of 29 million dollars would go towards refinancing the Treasury Bill which rolls over ever three months. This will account for 20 million dollars to pay off the Bill lodged with the Eastern Caribbean Finance Holding Company.

Additionally 9 million will be used to create a dent service reserve to pay money owed to the Caribbean Commercial Bank and the National Bank of Anguilla to the tune of 7.44 million dollars.

“Mr. Speaker basically we are re-organising our financing,” Mr. Banks stated. “We are ensuring that we have a facility to meet current requirements. We are paying off the current overdraft facility of 20 million and changing that into a long-term loan. We are also consolidating other loans as well as paying off the overdraft facility. It is hoped that this entire facility will assist us in meeting some of the long term project needs of Anguilla as well as the immediate requirement for the Wallblake Airport to establish a runway end safety area. It is something which our regulators on recent times are requiring…The 49 million dollars is part re-financing and part clearing off the overdraft facility.

“Mr. Speaker we also have one other motion. This relates to three projects which are being funded by the Caribbean Development Bank. They are already in place. As a matter of fact, the Caribbean Catastrophic Risk Insurance Fund has already been approved by the British Government even before coming to this House and that is for 200,000 dollars. The Caribbean Development Bank provided a loan of 425,000 US dollars to the Government of Anguilla after hurricane Omar which we spent from our recurrent budget as part of our reserves; and the Hospitality Training Institute feasibility study of 270,000 dollars. This is part of our efforts for the development of the Community College which many Anguillians are taking full advantage of at this time. Once the Community College is established, the 270,000 will come in the form of a grant as part of that overall loan.”

Opposition members Hubert Hughes and Edison Baird

The delivery of the motions by Mr. Banks followed a presentation to the House of Assembly be a team of personnel from the Ministry of Finance. The motions had the overall support of the Government side of the House but with Opposition Members Hubert Hughes and Edison Baird having difficulties with the larger loans. Mr. Hughes spoke for several hours on Monday this week in the House on his own behalf as well as that of Mr. Baird who left for St. Thomas that today for medical reasons relating to his recent injuries in a traffic accident at the Water Swamp in June.

In withholding his support for borrowing, Mr. Hughes charged that Anguilla had “a failed and lame duck government,...a government which has Anguilla to its knees through failed polices over approximately ten years.” He questioned the need for borrowing, accused the Government of wasting public funds and was of the view that the British Government would not approve borrowing for Anguilla.
After a protracted presentation of some five hours, Hughes refused to support the large-scale borrowing when the vote was taken.

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