END OF THE UK LOAN GUARANTEE FOR TCI

The Turks and Caicos (TCI) Government repaid its $170m guaranteed bond, thereby completing the refinancing of its UK guaranteed debt, on Monday, 22 February 2016.

The $170m bond was originally issued by the TCI Government in 2011 as part of the $260m UK Government guaranteed refinancing.  The bond was repaid from a combination of $142m of cash and a $28m loan (provided by RBC and announced last month).  The balance of the $260m had already been repaid in 2014/15.

“This is a moment to exhale and thank the Almighty for his favour! The convergence of sound fiscal management, vigilance of ministerial colleagues, the hard work of TCI public servants, the forbearance of the TCI people and the co-operation of the UK together with our international and regional partners have paid off”, said Minister of Finance, Hon. Washington Misick.  “I especially thank senior staff in the Ministry of Finance, the CFO and the Debt Refinancing Advisor for their role in the new arrangements for the residual balance of the debt. TCIG now has breathing space to fully reassess measures for widening the fiscal space in order to spread the benefits of growth more broadly. It however must be said that the financial prudence that has brought us here must become a hallmark of TCIG’s governing principles.”

“The repayment of this bond, and with it the removal of the UK Government guarantee, marks a very significant step in TCI’s financial rehabilitation.  In the last few years TCI has undergone a major turnaround, not only in its economy and government finances, but also in its international reputation.  With its booming economy, BBB+ credit rating and healthy government finances TCI is in an enviable position in the region – both to invest in the socioeconomic development of its people and to attract foreign direct investment into the local economy”, said Premier, Hon. Dr. Rufus Ewing.
 
TCIG’s Chief Financial Officer, Stephen Turnbull commented; “This is the culmination of five years’ work by TCI Ministers and civil servants, UK Government officials and a range of international advisers to TCIG.  Creating such a rapid and dramatic improvement in TCI’s financial situation has necessitated rigorous cost controls and a cautious approach to new investment.  With this period of ‘belt-tightening’ behind it, the people of TCI, acting through their Government, can now enjoy new autonomy to focus on the priorities that matter most to them”.

Governor, H.E. Peter Beckingham also welcomed the repayment, adding; “I know that UK Ministers are pleased that the bond has been repaid on time. It was necessary at a critical juncture for Turks and Caicos Islands, and meant that the country has been able to re-establish its economic stability. I would like to record my gratitude and thanks to a great many people in TCI, in the House, Ministers, public servants and UK advisers who have helped steer TCI to what is now an increasingly enviable financial position in the region.

“But there is no room for complacency, not least given our dependence on tourism, which can be fickle. We must all continue to look at expenditure carefully, and keep in place the necessary mechanisms to ensure our finances remain robust. I, and most importantly external observers, are confident that we will.”