TORTOLA, British Virgin Islands – The Government of the Virgin Islands (GoVI) maintained its ‘high creditworthiness’ issued ratings of CariAA- (Foreign and Local Currency) on the Caribbean Information and Credit Rating Services Limited (CariCRIS) regional scale. CariCRIS has also assigned a stable outlook on the ratings.
“This reaffirmed rating is a testament to the Virgin Islands’ sound fiscal management and our commitment to economic stability,” stated Dr Natalio Wheatley, premier and minister of finance. “Even amidst global challenges, our territory’s economic fundamentals remain strong, demonstrating the resilience of our people and our governance practices.”
Factors contributing to the rating:
- Continued Support from the UK: As a UK Overseas Territory, the GoVI benefits from a level of stability and support that underpins its creditworthiness.
- Strong Economic Fundamentals: The Virgin Islands boast a high GDP per capita, driven by a robust tourism industry and financial services sector.
- Dollarization: Pegging the local currency to the US dollar fosters economic stability and facilitates international trade.
- Prudent Fiscal Policy: The Protocols for Effective Financial Management (PEFM) framework guides responsible fiscal practices, resulting in low public debt levels.
Considerations for continued success:
- Human Resource Development: Investing in its human capital base is crucial for the Virgin Islands’ long-term economic growth.
- Enhanced External Sector Monitoring: Improved monitoring of external factors will inform more strategic policy decisions.
- Political Uncertainty: Addressing uncertainties surrounding the implementation of the Commission of Inquiry’s recommendations can further strengthen investor confidence.
- Debt Management Strategy: Mitigating the potential interest rate risk associated with variable-rate public debt is essential for continued fiscal sustainability.
The government’s ability to maintain this positive credit rating, despite global inflationary and other international pressures, underscores its commitment to responsible economic stewardship.
The premier and minister of finance confirms the government of the Virgin Islands dedication to promoting sustainable economic development and a high quality of life for all residents of the territory.