News broke this week of the British government’s financial “bailout” of the Turks & Caicos Islands (TCI). The British will underwrite a £160m loan to the islands that has suffered badly as a result of the global financial crisis. Despite being criticised in certain quarters back in the UK, this support is good news for the local TCI financial services industry says Ian Le Breton of the Sovereign Group.
A consequence will be that the local financial services industry should be protected, thus safeguarding the livelihood of those islanders working in the sector. Apart from tourism, these islands have little other economic activity. It is to be hoped that the breathing space created by the loan will allow TCI to bounce back as the global economy recovers. Financial services were boosted by news in 2009 when TCI was moved to the OECD’s “white list” of countries relating to compliance with internationally agreed tax standards. The Sovereign Group regularly uses TCI in its client corporate structuring.
Written by Ian Le Breton, who is based in The Sovereign Group's office in Gibraltar.
