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No rush to withdraw $$ from $100M loan- Premier Wheatley
He was at the time, speaking on The Morning Braff show on Tola Radio with host Floyd P. Burnett, also known as ‘Heritage,’ on Thursday, February 4, 2025.
Integrated into Budget
Premier Wheatley said while the funds from CIBC are available, necessary processes must also be followed before they can be spent.
He explained that while the money was acquired late last year, it must first be integrated into the budget before spending can occur.
“The money was allocated through the budget to be able to execute the projects; Now the various ministries, which are responsible for executing the projects, are going through their respective processes.”
As such, he noted that these processes include procurement procedures that must be completed before selecting contractors, telling the listening audience “...so, of course, it’s early in the year. We just reached February; You don’t expect to see those works being executed by February. Perhaps we’ll start to see things rolling out in the second quarter towards the end of the year.”
Loan Money vs Budget
Addressing whether the loan funds operate independently of the budget, particularly in light of claims that it could be accessed without bureaucratic hurdles, Mr Burnett queried whether the loan money is distinct from budgetary funds, to which the Premier provided an in-depth breakdown of the government’s financial structure, distinguishing between different funding sources.
“The other monies in the budget come from the Consolidated Fund, which is like the general bank account of the government; There are many other accounts, but that’s the main account that receives money.”
Further elaborating on how government revenue is managed, he noted that a significant portion—over 60 percent —comes from financial services, with key revenue inflows occurring in May and November.
“That money will come in, and you have to manage cash flow because this money is just projections. It’s what you hope to collect. You have not yet collected it.”
Interest Considerations
As such, Premier Wheatley said the loan is subject to a drawdown system rather than being a lump sum at the government’s disposal.
“The loan money that comes from the bank, you get that based on drawdowns from the bank; Of course, you have gone through a schedule with the bank in terms of how you intend to draw down the money and how you intend to execute your projects.”
With this in mind, he reiterated that the government would not rush to access the funds unnecessarily, as interest payments would begin once the money is withdrawn.
“We would want to draw down that money when we are ready to spend the money, meaning that we’ve done all the planning necessary because once you draw down, you’re going to be paying interest on that money.”
Addressing concerns about transparency and accountability, the Premier said the loan funds are accounted for within the national budget and would be spent responsibly.
“All expenditure, whether it’s from a loan, the Consolidated Fund, or other revenue sources like rent, goes into the budget as income and is then allocated as expenditure.”
As it relates to when the public will start seeing the impact of the loan, Premier Wheatley maintained that it will become more evident as the year progresses, telling Burnett, “We’re going to see the effect of the money a little later down in the year, to be clear.”
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8 Responses to “No rush to withdraw $$ from $100M loan- Premier Wheatley”
Money borrowed for infrastructural development was borrowed to be spent infrastructural development. Why hold it for future? The bank or banks will surely lend it out and make profit on it. Was not infrastructural development and more needful planned projects the $100,000,000.00 was borrowed? In my opinion $200,000,000.00 would have been a more appropriate and needful figure than the $100,000,000.00 now being held.
As far as I know plans must first be realized and preaccounted for mathically for before moneys are borrowed, not borrowed first and planned how it should be used later. To me this is not a good Money handling strategy. Better need to be done going forward.
Sooner or later intrest must be paid on along with the $100,000,000.00 borrowed. Base on the uncertainty of the worldwide maneuvering to acquire greater financial security for preservation and Better economic growth, governments with limited natural resources must be considered carefully how they will spend their money in the best interest of the citizens of their countries, the B.V.I is no exception. The B.V.I has the $100,000,000,00 in hand. The CIBC awaits payment. It will be paid one way or the other in its interest of choice.