Major players in the Caribbean regional debt market were impressed by the dramatic turnaround in the public finances of the Turks and Caicos Island’s (TCI), during a roadshow in Trinidad and Tobago, it was announced today, Tuesday, 3 March 2015.
Ahead of the TCI Government refinancing around US$70m of debt in February 2016, a delegation from its Ministry of Finance met with a number of regional banks, asset managers and other financial institutions in Port of Spain last week, 25-27 February.
“There was an overwhelmingly positive reaction to our story of the TCI’s financial recovery,” said Acting Permanent Secretary, Shonia Thomas-Been.
“During our discussions we were repeatedly told that the TCI had made an ‘impressive bounce back, that the government here had ‘done the right things and that our BBB+ investment grade credit rating awarded by Standard and Poor’s in 2014 is a critical factor”.
“We achieved our aim of generating interest in the regional sovereign bond market with regards to investing in the TCI, which we hope will lead to competition to lend to the TCI Government at the best possible rate for our taxpayers,” she added.
The TCI team also heard from investors that they greatly value the TCI’s relationship with the UK.
The Overseas Territory faced significant financial problems in 2008-09 which led to its Constitution being suspended. Since then, the TCI embarked on an ambitious series of reforms, including of its public financial management processes and systems.
Today, the TCI bank debt has already been fully repaid, leaving a $170m bond to be refinanced when it matures in February 2016, removing a contingent liability from the UK taxpayer. It is the TCI’s intention is to use the reserves held in its Sinking Fund to pay off approximately $100m of the bond, thus refinancing the $70m balance.
The UK continues to provide support to TCI officials through a technical assistance programme which includes providing specialist advisers to help in areas including public financial management, tax reform and collection, government procurement, audit and private enterprise.