Bond Issue Indicates Confidence in the Cayman Islands' Economy
It doesn't take very much or too long to recognise that there is a radically different and pleasantly innovative approach to fiscal and financial management in the Cayman Islands.
The latest initiative which is worthy of mention and commendation, is Government's decision to raise a $136 million (US$163 million) bond issue to pay off its public debt which is approximately $113million.
These funds will essentially provide some ease of the pressure on Government's revenue, since the payments over a 15 year period would be less than if the country was repaying its current debts without the benefit of the bond issue.
As was stated by Financial Secretary Mr. George McCarthy, currently interest rates are relatively low, but are expected to become lower.
To this end, the government has been advised to postpone the bond issue until the timing is more appropriate.
Mr. McCarthy stated that had the original intention to set up this bond issue by the end of this year been pursued, the government might well have paid approximately ten points over and above what the normal bond rate would have been.
This approach of care, caution and common sense is particularly welcomed.
As we have stated before, government stewardship of public resources calls for full accountability and transparency on the part of public service managers and all other officials entrusted with public duties and responsibilities.
It will therefore be expected that those upon whom such authority is conferred will use it responsibly and that they will at all times, remain fully accountable to the people.
Such accountability was also amply represented by the introduction of the new budget format which was introduced in the Legislative Assembly on Friday November 8, 2002.
The format has been designed to provide better information on what will be produced, at what cost and to what standard, while focusing on outputs with a stronger policy focus at the front end and providing clearer links between priorities and resources allocated.
Also of note in recent months was the fact that the Cayman Islands received a favourable Aa3 rating from internationally respected Moodys.
That this prestigious institution has endorsed this country's economic strategies and performance is a particular mark of pride and satisfaction.
An indication of the soundness of the economy, is the confidence demonstrated by lenders, foreign investors, external institutions and business sectors.
Continuing investor interest shown in this country particularly in the hotel sector, is testimony to confidence in the underlying economic fundamentals, in the good performance of the economy, and in the appropriateness of government policies.
Viewed in totality, these initiatives and developments indicate that the high level of confidence in handling the economy is being matched by that which is reposed in it by the international financial community.
The assessment of the Cayman Islands' future economic prospects are positive, and are predicated on the continuation of sound fiscal and economic management.
There can therefore be little doubt that given the ease which this bond issue should provide to government's finances, the Cayman Islands' economy will be well poised and pivoted for significant growth and development.