#GrandTurk, Turks and Caicos Islands – December 17, 2020 – A starting loan of $80 million dollars is approved by the Turks and Caicos House of Assembly and it will help to mitigate the economic fall-out resulting from the impact of the coronavirus pandemic on the local economy.
Losses sent the Turks and Caicos
into recession and demanded that funds be found to fill the hundreds of
millions of dollars lost in government revenue.
Premier Sharlene Robinson, on
Wednesday December 16, informed the House, that it took a mere seven weeks of a
competitive bidding process following the October announcement of the need for
the loan, to agree on the Republic Bank Ltd as the best lender.
The loan is for up to $80 million
at a per annum interest rate of 2.9 percent. Turks and Caicos has 12 months to
repay the loan and can borrow an additional $100 million with no additional
fees or penalties, said Mrs. Robinson, TCI Premier and Minister of Finance.
The Opposition Leader believes it
took the PDM Administration too long to move to secure the loan.
“It is surprising that it took us
until October to be able to reach out to financial institutions,” said
Washington Misick, who is also the former Minister of Finance, “We could have
seen this coming and could have better prepared to provide relief to the people
of the Turks and Caicos Islands based on those projections. The good thing
about numbers, the good thing about financial planning is you could always
present what is called flexible budgets, scenario analysis that would say what
the worst situation is, the best situation is and more likely situations.”
Mr. Misick is convinced the Turks
and Caicos will need more money and shared the Opposition will support the
measure largely because of those who would be adversely impacted if the
borrowed funds were any further delayed.
“…for the people of the Turks and
Caicos Islands and particularly the persons who would most likely be impacted,
by the inability to pay government expenses
in the absence of having this stand by line of credit
There was also concern and caution expressed
by the Opposition Leader about when Turks and Caicos would begin to see some
semblance of normal in the leading industry of tourism.
“It is anticipated that tourism
would be in full swing by the middle of December, which is where we are now my
understanding is the average occupancy rate in the islands is around 35 at the
most 40 percent. So, I’m hoping – as I have spoken to the budget in April –
that again we are not being over optimistic about what the real situation is.”
Misick agreed that the cost of
the borrowing is reasonable.
Republic Bank is based in Port of
Spain, Trinidad and Tobago and is a publically traded company on the Trinidad
and Tobago Stock Exchange (TTSE).