TCI Gov’t Announces $10.5 million debt write-off

Dana Malcolm 

Staff Writer 

#TurksandCaicos, September 19, 2023 – Over 170 Turks and Caicos Islands families have been relieved of a collective $10.5 million debt stemming from decades-old TC Invest Loans.

There was an air of jubilation and support from members in the House of Assembly when the motion to write off the massive mortgage debts was moved by E Jay Saunders, Minister of Finance and Deputy Premier, on September 14th.

The motion laid out that with residents struggling under the weight of high cost of living the government had decided to strike the loans from the books completely.

“This motion is our chance, as policymakers, to create a future (a brighter future) for 176 Turks & Caicos Islander families—-we are not just providing financial relief; but we are also restoring dignity, rekindling their hope, and in so doing, reaffirming our commitment to the well-being of our people and ensuring that they can live their best lives,” Saunders said.

The money had been loaned to residents over decades beginning in 1997 by the now-defunct TC Invest. When the government-controlled investment company went belly up in 2012 and the British stepped in to lead the Turks and Caicos, a total of $17 million was owed on the loans.

The government sold the non-performing loans (the loans with irregular payments) in the portfolio to TOLCO who got to keep 60 percent of any payments made while TCIG kept 40 percent and the performing loans. Five years later, the agreement ended and the entire loan portfolio was back under the control of TCIG.

This meant the government was owed the initial payments plus interest. But residents still couldn’t afford to pay, and thus began a series of write-offs to ease the burden.

• In March 2020 the government wrote off all the interest that had built up on the loans, just over $8 million
• From April  2020 to September 2020 the government froze interest in the loans to try to get residents to pay them off. It didn’t work.
• When that freeze ended interest built up again and again went unpaid, the government wrote it off again in January 2023, a sum of $1.8 million. They then issued another interest freeze and even tried to lower the interest rate but residents still aren’t making any payments.

In recognition that the debt was unbearable for the loan holders, the government decided to forgive the sum in its entirety.

This is no different than what has been done on many occasions for large companies that find themselves in debt. Saunders revealed that residents struggling with the payments had even written in to ask that it be forgiven.

At the passing of the motion, some members called for celebration be it coffee, chocolate, or champagne.

The hope from TCIG now is that residents will be able to own these lands and homes outright.