BVI leader says no fall out in BVI from financial crisis in US
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| Published on Thursday, October 2, 2008 |
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By Oscar Ramjeet
Caribbean Net News Special Correspondent
Email: oscar@caribbeannetnews.com
ROAD TOWN, BVI: British Virgin Islands Premier Ralph O'Neal, who is also the Minister of Finance, said that there is no immediate fallout in the territory from the financial crisis being experienced in the United States.
He told newsmen that the Financial Services Commission has not yet reported any fallout. He said, however, that "there is always a time lag of months before the BVI feels any negative effects". He noted also that the same applies when there is growth in the US economy.
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| Premier of the British Virgin Islands Ralph O’Neal |
He added that the BVI has not been directly affected by the financial crisis, mainly as a result of the limited exposure of the commercial banks to the sub-prime crisis and subsequent credit crunch. He added also that the government is mindful of the indirect impact, which would have a long-term effect on the BVI economy.
Noting the BVI's dependence on American and European markets as it relates to tourism and to a lesser extent financial services, the Premier said it is prudent to keep a watchful eye on what is happening.
Responding to a question about the security of the assets of the Social Security Board, some of which have been invested in the US, the Minister of Finance said he has received assurances that they are safe.
He acknowledged, however, that residents are feeling the impact of "high fuel costs, which have impacted food prices and electricity.”
The main revenue earner in the BVI comes from financial services, followed by tourism and the marine industry.
More than 600,000 international business companies are registered in the territory. | | | | Reads : 269 |
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