The Anguilla Government now has some additional funds available to finance its public services by borrowing 20 million East Caribbean dollars from the National Commercial Bank of Anguilla (NCBA) as provided for under the Financial Administrative Audit Act.
The borrowing of the loan from the NCBA means that the Bridge Bank which replaces the National Bank of Anguilla and the Caribbean Commercial Bank, is in a financial position to undertake the disbursement of a loan of that magnitude.
In moving the necessary Motion in the Anguilla House of Assembly on Friday, October 5 – which approved the customary measure, with the consent of the Governor – Chief Minister and Minister of Finance, Mr. Victor Banks, said that the previous financial arrangement had expired on September 30, 2018.
The main wording of the Motion read: “Whereas the Minister of Finance has reviewed the fiscal position of the Government and deems it necessary to maintain the overdraft facility at the present limit of 20 million EC dollars.
“And whereas the National Commercial Bank of Anguilla Ltd has agreed to provide an overdraft facility in the amount of 20 million dollars at an interest rate of 5.57 percent, from October 1st 2018 to September 30th 2019, subject to a continuing guarantee and promissory note being provided by the Government;
“And whereas it is necessary that the Government has access to the overdraft facility between October 1st and October 4th, 2018, and a Resolution to give effect to the renewal of the overdraft facility will not be moved in the House until October 5th, 2018;
‘Be it resolved in accordance with section 13 of the Finance Administrative Audit Act that the House of Assembly approves that the Government borrows by means of a fluctuating overdraft the sum of EC 20 million dollars from the National Commercial Bank of Anguilla Ltd in order to meet recurrent requirements from October 1st to October 30th 2019. Any money borrowed by the Government of Anguilla from the overdraft facility of the National Commercial Bank of Anguilla between the period October 1st to October 4th is deemed to be validly borrowed to the extent that it would have been if motion Number 13 2018 was moved on or before September 30, 2018 pursuant to Rule 26 (1) of the Legislative Assembly Rules …”
The Chief Minister pointed out that for almost 20 years the Government had maintained the facility, borrowing money from Barclays Bank, NBA, CCB and now NCBA. The intention is to have funds available during the fluctuations of Government revenue especially during lean months, and is a normal requirement to ensure that at the end of each month the Government is able to meet its obligations.
Leader of the Opposition, Ms. Palmavon Webster, said in part: “I am “saddened that, after all these years, we are in a debt-ridden society… I see that this is routine and …it is good to have an overdraft facility because we don’t know when disaster might befall us. [But] in the 1970s and early 80s we took a lot of pride, as a country, managing debt in a different way – not in a routine way of getting an overdraft and using it to pay higher recurrent expenses.”
She observed that in other small territories, like TCI, financial matters were done in a different way, which she did not specify. She wondered why Anguilla could not change its routine borrowing of overdraft facilities.
The Opposition Leader suggested to the Chief Minister that he should not renew the overdraft facility next year but should find an alternative source of funding. Both the Minister of Home Affairs, Mrs. Cora Richardson – Hodge, and the Minister of Infrastructure, Mr. Curtis Richardson, spoke in support of the Chef Minister’s Motion.
Commenting on Ms. Webster’s statements, Chief Minister Banks responded: “I would like the Member for Island Harbour to bring an alternative budget to the House of Assembly, which includes all aspects of the delivery of Government’s services, the next time. I would like for her to tell me where she is going to get the revenue to cover education, health, social services, the needs of the aged in our communities, the promotion of tourism, our main industry, the promotion of financial services and the payment of critical officers in the Government who provide technical support to the various ministries.”
