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You are here: Homepage > Press Room > Press Releases 2009 > LoGB Statement - 3rd September 2009

Published 3rd September 2009, 9:9am

The purpose of this statement is to outline Governmentís current financial position moving forward, and in response to recent media coverage:-

The Cayman Islands, like the UK and US, is a part of the global financial infrastructure which is facing the most significant economic downturn of the past 40 years. As you are no doubt aware, Caymanís two main industries - tourism and financial services Ė are amongst the most significantly affected sectors around the world.

Although, we are confident that the strength and resilience which has contributed to Caymanís significant growth over the past 40 years will continue to serve the country well, the Governmentís efforts are being directed to ensure that Caymanís existing revenue bases continue to be attractive to international markets.

Work is currently being undertaken to cut Government expenditure by CI$89M and we have identified a number of new revenue measures that will result in new annual sustainable revenues. Some of these include customs duties, licence fees, and a number of other indirect taxes.

The government has also implemented an aggressive inward investment programme through private sector partnerships which will result in a number of new infrastructure projects and other developments. These will result in the region of $3billion of inward investment in the short to medium term. We are confident that these measures will result in a surplus for the current fiscal year.

Regarding recent media coverage suggesting that the Cayman Islands is bankrupt, we can confirm that these accusations are incorrect. Indeed the recent statement made by Moodyís confirms that the Cayman Islands remains one of the most highly rated financial services jurisdictions in the world.

The Cayman Islands Government wishes to borrow for capital projects that were started under the previous Government, and will be the primary focus for capital expenditure which includes the building of two new high schools.

The reality is that our requirement to seek the UKís permission is based on statutory restrictions which we, the Cayman Islands Government, have placed on ourselves to ensure continued prudent fiscal management.

In three weeks time we will be presenting our Budget which will continue to maintain Caymanís sound financial stability. The Cayman Islands is well placed to take advantage of the global economic recovery and we are committed to continuing the success of our indirect tax system which has served the country so well over its history.

 

For more information, please contact the Financial Services Secretariat at (345) 945-5819 or via email at financepr@gov.ky.