Saba’s Lending within Scope of Budget

“The interest free loans that The Island Government of Saba have received and have applied for thus far fall within the scope of the budget and there are no plans to pursue additional loans at this time or for the foreseeable future. The repayment of these loans have been included into the multiyear budgets which have been approved by the CFT, the Ministry of Kingdom Affairs and the Island Council,”stated Commissioner of Finance, Bruce Zagers. This was in response to statements in the media of a letter from the CFT to the Ministry of Infrastructure and the Environment which stated that Saba could not obtain any additional loans if the second loan to repave the Fort Bay road is granted. Last year the government received an interest free loan from the Ministry of BZK to construct a parking lot in Windwardside to alleviate the traffic problems.

“Both loan payments have been approved by the CFT and are within the parameters of the budget that is set by that organization,” the commissioner explained. “Furthermore the loans are booked as direct expenses and are not derived through income from accrued depreciation. The repayment of these loans will not interfere with the normal operations of government.”

The commissioner went on to say that The Island Government is well aware of its financial position and is not willing to compromise the services and activities that it executes within its budget. “Saba has made great strides to improve financial management and will not pursue additional financial obligations which will compromise what has been achieved.”

Press release GIS Saba, April 15, 2015

On this subject: CFT: No margin for more loans