Anguilla Fleshing Out Fiscal, Bank Resolution Plans
by Mike Godfrey, Lowtax.net, Washington
11 February, 2016
Anguilla, an overseas territory of the UK, is seeking agreement from the UK Government on a plan to shore up the Caribbean territory's banking system in a fiscally sustainable manner.
Christina Scott, the Governor in Anguilla (the UK's appointed representative, who acts as head of state), provided an update on these talks on February 3.
She said discussions between Anguilla and the UK have focussed on ensuring a resolution plan that is both affordable and sustainable. The principal areas of ongoing discussion are:
- How best to support the growth of the Anguillian economy alongside the Government's plans for returning to compliance by 2025 with the borrowing limits set out in the Fiscal Responsibility Act 2013;
- Considering what arrangements might be introduced to strengthen public financial management to help manage the challenges of an increased level of debt; and
- Arrangements relating to the appointment, accountability, and governance of the organizations that are implementing the banking sector resolution, such as the new bank and the Asset Management Corporation;
In 2013, the Eastern Caribbean Central Bank took over control of Caribbean Commercial Bank (Anguilla) Limited and the National Bank of Anguilla Limited after both banks were hit with financial difficulties following the financial crisis. Scott said the UK is continuing to discuss with the Government of Anguilla, the IMF, and the ECCB the arrangements for the proposed Asset Management Corporation. "How this resolves outstanding non-performing loans will be an important issue both for those borrowers in default, and for Anguillian taxpayers," she stated.
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