Bond to help CIG meet social welfare costs
(CNS): Finance Minister Chris Saunders has said the decision to consider issuing a US$400 million bullet bond in the US capital markets will enable government to restructure the public debt over a longer period and offer the flexibility it will need to meet the country’s growing welfare costs.
Saunders told CNS that PACT is considering offering retired homeowners reverse mortgages as a way of helping them access their own equity and reducing their dependence on financial support from government. Given that Caymanians are forced out of work at 65 on inadequate pensions, the welfare bill will continue to grow.
“We are very concerned about the growth in the level of spending on social welfare, especially for the elderly,” he said. “The government wants to offer those who own their own homes reverse mortgages that can support them through retirement. To do that we need to restructure the debt and over a longer period.”
Saunders explained that banks will not offer reverse mortgages to pensioners and that in order for government to do so it needs to borrow over a longer term than the current 15 years, which is why the finance ministry is examining the idea of a bond to enable greater flexibility and probably much better terms.
The minister said that the credit facility negotiated by the previous government has been fixed at 3.2%, but given the low cost of borrowing at present, he believes government can improve on that significantly.
According to a request for information on the government procurement website, the ministry is looking for independent financial advisors to serve as consultants for issuing a 30-year US$400 million bullet bond in the US capital markets in the second quarter of this year.
The main difference between a bullet bond and a loan is that the entire principal value is paid on the date of maturity instead of by regular payments. The RFI suggests that government is aiming to issue the bond in the second quarter of this year.
Over the next year, government has already committed to borrowing just under $300 million and another $50 million the following year, increasing the overall debt to around $485 million. Most of that debt is with local institutions and is due to be paid back during the current decade.
Following the publication of the tender, the opposition was quick to criticise the government for the proposal. Opposition Leader Roy McTaggart said it was “rushed and unexpected” and never mentioned during the recent Budget and Finance Committee meetings.
However, the government did say during those meetings that it was considering restructuring the public debt. McTaggart said that government’s previous experience with a bullet bond was costly and should have served as a lesson to future administrations.
“Such a bond is unnecessary and will become a significant financial burden to the people of these islands over the next three decades,” the PPM leader and former finance minister said. “This ultimately means less money available to assist families and businesses over the medium and long term, especially as we recover from the pandemic in what is still an uncertain economy.”
McTaggart accused the government of turning its back on prudent financial principles and disregarding the long-term financial interests of the Cayman Islands, claiming the government was undermining the work of the previous administration.
“Over the two Progressives-led governments, the national debt fell from around $560m in 2013 to under $250m on the day we left office,” he said. “The PACT Government seems set to undo in two years what it took us eight years to fix – leaving the country again with massive debt.
“This bond will saddle us with interest payments on $400m for the next 30 years and by my estimates, conservatively assuming interest rates of between 4% to 5%, will cost the country between $480 million to $600 million dollars in interest over the life of the bond. Far more than the amount being borrowed.”
But Saunders made it clear that government is seeking better terms, not more expensive ones, and the PACT Government is navigating very different economic waters than those faced by the previous administration.
He stressed the current government’s desire to help the people and the need to borrow in order to do that. He told CNS that he was disappointed with the opposition leader, who he said continues to play politics over the country’s finances at a very difficult time and the future social problems that will need to be addressed.
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Category: Government Finance, Politics
PACT- Excommunicado
Jamaica-style politics at its finest, fuelled by an irrelevant media organization that spews hate and misinformation. This is the same recipe that brought Jamaica (a great country) to its knees. Can the yardie, coronation street minister tell the country how this bond will be paid, once it matures? Didn’t his illustrious Speaker not do the same a few years ago, that caused total mayhem? Birds of a feather, sure do stick together.
Your vitriolic attacks on Mr. Saunders speaks to your complete lack of class and decency. Doubt you are an expert in the subject of finance, but you sure are an expert in HATE mongering.
Where is the hate in the posting? Legitimate, pertinent and relevant questions were asked. If you want to say name calling, then maybe yes- but unless I read a different English than you do, the poster is spot on with her/his comments and the post does not reflect hate.
An easy way to feed the beast with the “side commissions” that “the fixers” will pay under the table.
Tried, True and Tested methodology by the seem old bush grifter that continues to run this shit-show that is the CIG.
Nothing new here, simply move on. Nothing to see here.
Leave Coronation Street out of this!
I’m not a financial “expert” like Minister Saunders, nor a “political expert” like our Cabinet MPs but doesn’t the success of a bond issue depend on subscription thereof?
I trust the “Transparent” PACT will keep us informed of the progress of the bond issue. Let’s see how much they really raise.
Cayman Media – you are challenged to keep up on this! Let us know!!
There is absolutely no reason we can’t invest more into sustainable energy. There’s no reason we cannot invest more into proper education for the children via trade schools and afterschool activities. There’s absolutely no reason we need to be putting more money into the hands of those that don’t want to work for it. Also the reverse mortgage bullshit will only add to more people Hoarding homes.
Cayman population please note. Cayman’s political “system” is NOT based on politics, civic ideals, fundamental principles of governance for the people at large, etc., etc…
Our “system” is based on POPULARITY, which is acquired by personal favours and hand-outs! NOT general policies to improve the quality of education for future generations, or the general quality of life, or the control of inflation for the benefit of all, or the assurance of affordable housing and health care for all. NOTHING related to the people at large – only what can be done individually for me and mine (times a given number of voting households per constituency).
POPULARITY only! After the election, when I was grieving over the possibility of Kenneth Bryan becoming a Minister, a former Cabinet Minister said to me, “What you mean? Kenneth is one of the most popular politicians in Cayman!”. That says it all, regardless of his criminal background, lack of any previous job experience, etc. He is Minister material because he is POPULAR! And how else to maintain that but hand-outs and favours?
That’s Cayman’s politics!! Gutter politics! Jim Bodden’s legacy! And sadly, it is our brand and unlikely to ever be changed because that is what the electorate has become accustomed to and know nothing else!!
No one with real integrity, ethics and intelligence would ever want to be part of that swamp!!
Winston Connolly tried it. The machine spat him out. He however kept his integrity intact.
Exactly, what I said before. Unfortunately, there was only one of him. If we could have gotten 19 of him, we would be sitting in a better place.
Nice one PAC! Borrow money so you’ll have enough to give away!! Financial geniuses! Dep. Premier Saunders, is that you?
Oh how we miss Mr.Ezzard Miller…he must be sweating buckets of sweat when he read this. it is really time for a National Vote.
Oh yes, such a wonderful collection of people to vote for here. Such talent. Surely we can do better than old boy Ezzard. But maybe not.
Not the most approachable person, nor a favorite of mine BUT give me Ezzard any day over any of the clowns in Cabinet now. And to think we have 3 more years to endure this chit show of the PACT cartoon show.
The fact that billions of working men and women
must sacrifice 40+ years of their time, energy, health,
and focus to gain access to fiat currencies that central banks replicate with a key stroke is injustice on the largest scale humanity has ever seen.
It is theft. #Bitcoin
It’s almost here…the end of fiat….Chris and them see it and that’s why they are borrow paper so when it is due it will be payable in paper. It’s just paper., worthless paper. Down 7% in 1 year soon down 30%. And thereafter no one will want it.. will that be bitcoin or ethereum or xrp.
Yes, lets continue the trend of giving less fortunate Caymanians handouts, rather than putting that money into better education (and I DO NOT mean more brick and mortar schools!). Handouts get votes. We need to get the message across to less fortunate Caymanians, that those handouts are temporary solutions. Educating themselves and their children will give them long term solutions and an opportunity for them to build the generational wealth that will improve their family’s lives long term. We need to get the message to our underprivileged Caymanians, that their vote is valuable. Don’t give it away for a short term handout. Insist on improving public education. Insist on more scholarships for less fortunate Caymanians to attend the private schools that will prepare them for university. Insist on more scholarships for tertiary education. Putting more funding into NAU gives people fish. It doesn’t teach them to fish for themselves.
What we are in fact doing is giving fortunate Jamaicans and Hondurans handouts, and then granting them status right before any auditor notices. Guaranteed votes. Works every time.
Our Jamaican politicians are turning us into another Jamaica, for the sake of their futures and fortunes.
Caymanians are standing by and letting them do it , instead of stepping up to protect their country from crime and corruption Jamaica style.
FACT!!! There are probably 15,000 Caymanians in this country and that includes those that recently had their status granted by way of Caymanian family connection. You do not need to take out a $400M bond to support those in need that are actually Caymanians. Many of that 15,000 are also employed. So, Caymanians need to wake up and understand its your children that will be saddled with this debt. Those that got their status through a point system etc will leave and go home wherever that is, when this goes bad. This is how all other countries in the Caribbean lost their way, through this sort of unsustainable debt (although its only other overseas territories in the Caribbean that have found themselves outnumbered in their own country! If we dont sort this out there will be nothing left here for Caymanians or expats for that matter.
CIG = CMR and that pretty much sums up everything we need to know about PACT. Remember when he came to her defense during her sentence hearing. If your values are in lock step with hers what type of person do you think he is and how he will govern. Look at how they got elected and look at how they are running this country.
When governments go rouge and use other rouge sinister media to help them get elected. There is no one reigning them in. No accountability, no community (this is the most divisive government I seen in Cayman), zero transparency. I’m assuming the people they are for are the ones whose votes they are attempting to buy. It will be very hard to reverse and the mentality it will set in place. Why would anyone want to show up and earn a living when it will be given to them. Meanwhile those with means will continue to vilified for actually showing up. This is surely a way to rid ourselves of a middle class and join Jamaica.
Agree completely, but it’s spelt Rogue.
Rouge is either red, in French, or make up.
Also a 1 point score in Canadian Football… awarded when a team takes a touchback instead of returning a kick out of the end zone.
Lovingly referred to as the “Dreaded Rouge!”.
When a government goes rouge, it goes red, and when a government goes red it goes communist, ergo the original poster was correct.
How to turn 400 million into minus 400 million in a few years. Spend it all on those who earn pennies. Again.
I would like to be optimistic but can’t help but feel very concerned for our future generations. Our politicians really should be looking at the long term and trying to plan ahead for how the islands are to remain successful if for example if we have an oversaturation of the real estate market of unsold/unwanted condos, another Ivan or the financial sector choose to relocate to other areas of the world. Investment in a skilled, highly educated local workforce is one thing but borrowing to financially support people who are fully capable of retraining and filling job roles currently going to imported labour seems madness.
Sadly no-one in government seems to look further than their next opportunity to be re-elected and continue serving their own self-interest. Couple that with the people in most powerful positions being woefully underqualified and in some instances totally inappropriate for the role…it is time to start being really worried for the young people just starting out…
If the world hasn’t fallen apart in 4-7 years, as a Caymanian who has lived her since I was 7 years old, once I receive my accounting qualifications I am leaving this place. It’s impossible to change anything when the same families are orchestrators behind all dealings. We know who they are but we truly are powerless because no-one wants to be inconvenienced to do and say what needs to be said. The years I spent speaking with my own peers, trying to muster up some type of fight in people to demand what’s right for the people of cayman amounted to nothing. Everyone just wanted to complain behind closed doors and carry on as normal.
I have no interest in the island other than the money I can get from working here in my financial services role and I will be leaving as soon as possible. People foolishly vote in foolish people into positions where they get sums of money to make themselves richer with under table dealings. Now, all governments across the world do this, but with the size of cayman, their dealings affect us much quicker as we are close to the epicenter.
Cayman will lose this educated and law-abiding citizen because yet again, the main families and politicians who run things are short sighted and greedy and only care about enriching themselves, but they don’t realize the tide will bring them in as well.
So true and sad.
I have no interest in the island other than the money I can get from working here in my financial services role
With that attitude I suspect you will be here until the last ship/flight out before total collapse, and at that moment still looking to see if there is anything you could appropriate from one of your fellow rats.
Well we can strike the ‘T’ off of PACT for sure. To go through a budget session for the next two years a month ago and not mention this bright, sorry dumb, idea is shocking.
Minister Saunders is clearly not ‘transparent’ and I now have grave doubts about his concepts of ‘accountable’ and ‘competent’.
10% Income tax for all permit holders. Despite all the threats to leave, they won’t. They know which side their bread is buttered.
Hahahahhahahhahaha
Enjoy the mosquitos, terrible food, crime and shit service.
There’s plenty of alternatives
I agree 100%, I just got my status, so make it 50%. Make those lowly WP holders pay!!
8:18, Let’s totally screw the financial services sector and go back to fishing, basket weaving and all eating turtle stew.
We are a brilliant people.
No fish left. The Jamaicans put them all in fish tea.
It certainly would make it more difficult to attract and retain good talent. Try again.
Who cares about talent with all the brilliant people our education system turns out here. 😆
There is a high level of delusion in our society.
Cayman is the epicenter for tax avoidance. People will figure out how to avoid any income tax. That’s what the expertise.
Oh? why did you not say 10% income tax across the board or everyone living here?
Oh, Wait, Nevermind, Peter pay for paul, and paul eats it all I guess
7:30, What you forget is all the permit holders realize the high cost of bread and butter on these islands.
Work permit holders are not that stupid.
How about a 10% cut in MP’s salaries and Cabinet Ministers with no pay increases for a few years and a freeze on all civil service salaries for 2 years. Spread the pain around.
Leadership should set an example.
I’m sorry but Civil Servants receiving less than $3000 a month should not have their pay frozen. Do you think it’s fair to freeze civil servants salaries who have not received a pay raise in 13 years? MPS should never have received a pay raise or the higher ups. The Civil Servants on the bottom should have received a pay raise.
7.30am This is a popular theme amongst ignorant Caymanians. Deduct 10% from the $5 an hour wages of the poorest who still try to help their families in their home country?.
Perhaps an income tax of 10% on everyone who earns in excess of $100,000p.a, chargeable on the excess over $100,000, this would include politicians and the self employed. The problem is this would entail tax returns, the administration of which would be beyond our civil servants. I recall the poll tax many years ago, which was chargeable on every male resident which was abolished because Govt were unable to collect it.
As someone who has benefitted greatly from living in Cayman I do not disagree with this proposal but I am loathe to put more money into the billion dollar CIG blackhole with no resulting benefits to the Cayman people.
I as a Caymanian, am slowly opening up to a flat income tax, however there is no evidence that the money will be use efficiently. When they get a taste of income tax, they will only waste it and demand more because the issue is always “We don’t have enough money to do it properly”.
Well you voted for these clowns. Now your kids will pay for it.
The yield on a 30 year US Treasury is 2.07% so I’m not really sure how Saunders thinks they can “significantly” improve on the 3.2% achieved previously. Also what happens with these reverse mortgages when it comes time to sell the properties and no-one wants to buy? Surely this would all be better handled by the private sector?
Have no fear, inflation is here
It was a matter of time. Luckily Democrats do better with money
I don’t think it is a terrible idea., the level of devaluing of the US dollar will mean it is actually time to borrow and repay in 30 years when the Petro dollar no longer exists.
FYI Litihum is priced in Chinese Yuan so may look at unpegging the CI dollar from the US dollar cause that shil is going down unless….
No here is the unless…the Americans become forcefully imperial again and start annexing land (think Panama canal days). The region is in for a rocky run when the Gorilla needs to eat and he is getting hungry.
You forget to take your meds.
You need to wake up. The Fed is running a ponzi, all central banks are.
And you need to go back to sleep. But take the tinfoil off your head first.
Global debt is in the hundreds of Trillions.
You work your entire lives for something the privately owned Fed just created from nothing. So why are you working?
Privately owned fed… oh dear. They’re coming out the woodwork again. Is it 2008?
Please spend 5 minutes and educate yourself…
https://www.federalreserve.gov/faqs/about_14986.htm
Spend a couple of hours and learn some history.
https://m.youtube.com/watch?v=Xoz4jbEZzlc
https://www.google.com/amp/s/thehill.com/homenews/senate/345060-ambassador-nominee-bahamas-a-us-protectorate-for-all-intents-and-purposes%3famp
No someone forgot to open they eyes and have a look at the fed balance sheet, debt levels etc. America is in a world of problems and history shows what they do, Hawaii, Puerto Rico, Panama Canal, Nica, Cuba….but keep zzzzzz. Watch a few interviews with Jeff Gundlach to may learn something
What the actual F—??
How about raising stamp duty on any property over $!M to 10%? There are alot of properties being sold in excess of this amount and if you have a $1M you should have a $100K to pay stamp duty..
Inflation!!!
People who bought those properties already paid the full Stamp Tax if they are not Caymanian because Caymanians get a break on Stamp Tax on properties. What about everybody pay the same Stamp Tax on properties and no reductions or ability to borrow from their pension that non-Caymanians cannot do. I guess you only want ex-pat $1M property buyers to do it, correct?
Just to clarify, Caymanians do pay stamp duty. They are only exempt if they are a first time buyer, and there are limits/caps where the exemption is allowed based on the value on land that they can purchase.
Well, that’s how its supposed to be at least.
How about spend less and people learn to take care of themselves by saving during their earning years?
Inflation tax is 9% a year.
Your currency is worthless
What do think one of the main reasons real estate prices are so high? Every time a property sells it has to appreciate 7% in order for a seller of that property to recoup their investment. If anything stamp duty should be lowered and non-caymanians should not be allowed to land bank.
Making Peter pay for Paul always ends up with Peter owning Paul. What is left to sell but yourselves? The last and final lesson.
8:07, This idea of a higher stamp duty on the million dollar properties bought by foreigners, (Chinese) is now being seriously considered in Canada as housing prices in both Toronto and Vancouver have become ridiculous the last few years due to Chinese money coming into the very high end real estate market.
Handout capital of the world.
Not even close
Exactly. But, we all saw how the private pensions turn-out with poor oversight, lack of enforcement, and irresponsible money management of vested pension contributions & investments (the portfolio), which left many people poorer than they were prior to retirement.
It is a dicey situation when you can’t trust the systems put in place to protect investors’ investments.
With that said, I agree, a Fund yielding returns over time is the best & most prudent route (when properly managed).
Sometime back, Mr Saunders introduced a motion in parliament to increase the age of retirement and the motion was passed. Now, instead of giving handouts, why not implement the resolution so that people can work and live with dignity, instead of of depending on Social Services?
Because governments gave absolute power to central bankers to create unlimited currencies
Does the Minster think he is playing with monopoly money?
A .fool and his money are soon parted, except in this case, it’s our money.
He is. It’s a credit line entry at the Bank of England
They take $1,500,000 a day in wages.
Borrowing money to pay for the welfare state. Should borrow money that can be invested and produce returns for all citizens. When the borrowing drys up the tax talk starts again.
Smug and arrogant elitist lacking empathy
You realize that the money they are borrowing is actually your money as well, which you pay back via taxes. The only people receiving the benefit are those who do not contribute to society right.
You do realise it’s not your money, it’s the banks
Irresponsible idiot unable to take care of himself
Parasite
Several years ago Gilbert Mclean and myself suggested on at least two occasions that I can recall that we should have investigated into the establishment of something akin to a Sovereign Wealth Fund .It was we opined, the ideal time both tourism and international finance was doing well and there was little to no significant unemployment.
Time and its ancillary phenomenon has dictated that we have missed an ideal opportunity to realize a fund that could at least give us an option. The political directorate has inherited a challenge which is not easily dealt with and while due credit should be given to the Deputy Premier and Minister of Finance ,floating a bond is not the ideal panacea, since when the bond matures government will have to find the money.
The ultimate solution lies in some for of direct taxation which can be levied proportionately across the tax base. The most easily implemented system would be some form of land tax and since we have a Land Information System already established such a system could be implemented relatively quickly.
Having now made this suggestion , I shall await the contrarian comments of those who in the past hid behind anonymity to lace me with their ad hominem remarks. Perhaps they may wish to consider prefacing their comments by revealing where they went to school and how many books they have published .
Roy you always come up with contructive ideas which I welcome. A system of annual land tax could easily be introduced . However a discount would need be given to those land owners who recently acquired property. I do think that workable.
The other problem is see is that many Caymanians and indeed other own parcels of land that have no income. So a man in Northside who might own land and possibly farm it would not be able to pay taxes.
What I do see is that foreigners are buying large parcels of land and putting in a land bank. This is driving up the price of property.
Above all of this , is that CIG needs to employ a troubleshooter to specifically employ someone who will identify those areas where the public are evading their taxes. Believe you me there are plenty of those.
In conclusion why does Wayne not form a committee to investigate means of increasing revenue. Many would assist.
Tax the people who are already poor, unemployed, discriminated against, undertrained, under-educated, living from hand to mouth, begging for an opportunity?
No!
The answer has already been given to us, the Global Corporation Tax must be collected and it can be collected in the jurisdiction where the corporation was registered. Start collecting that before the UK and USA devise some way to grab it.
Why not lower cig expenses Chris ? You think there might be a little excess fat in the public sector?
$62000 every hour in wages 24-7
Just to manage 70,000 people
8.40am Correction your second sentence should read “mismanage people”.
Great idea. Does the Government have the balls?
6:59, Chris has been here too long to think that. He has gone totally local.
Mr Bodden, some of us were trying to get Jim and Haig Bodden to set up a “rainy day fund” aka nowadays sovereign wealth fund when you and Gilbert were still faffing around trying to decide whether you were teachers or what and the money was pouring in from condo building. It didn’t happen then or later because we in Cayman have NEVER been good at planning for the future when the whole environment is built up and no more development is possible. That day is near.
The real problem lies not with the system of taxation, but in the politician’s willingness to always spend more than what is taken in.
Well the last two Governments spent the surplus and still built savings and paid down our loans. These guys spend and borrow. Thats how Bermuda started. Now they owe maybe 2 billion. God help us.
They didn’t read confessions of an economic hitman.
Last government had a qualified experienced accountant with integrity.
Enough said.
Roy, you are a scholar and a gentleman, but direct taxation is unnecessary and inappropriate. Unnecessary because we have much more money than we need, if only our government were responsible stewards of it, and inappropriate because it would destroy our economy overnight. These are facts.
May I suggest cutting the hourly government payroll expenses of $62,500?
Then Legalise weed and Bitcoin 1% Vat.
Free health care, x3 increase in pensions for those in need. Free food for all schools
A SWF is all well and good but who are you going to get to invest it? There’s no one on this island I’d entrust 100k to let alone 100m+.
SWFs only have one investor
The point was where are the funds invested and directed by whom, not who would invest in it.
Roy you take your big fish self, in a very small pond , far too seriously.
Minister Saunders is entirely lacking in ethics, morals, and financial management ability. This will put the future financial stability of this country at risk and burden our future with debt that can only be repaid by increased taxes on the people.
For all of you who voted for the PACT and their web of deceit, I hope you are happy! I was shocked to learn that the Premier was dumping money on Mario Rankin to fund his Facebook live rants. That should be investigated because it certainly appears to have influenced Mario’s vote. he even talked about changing his son’s mind on who to vote for in Newlands. I wonder how many others received similar “treats”?
to be fair, its not really a web of deceit, they are acting on their promises which is the real reason only the dumb and fooled voted them in. The truth hurts as they say so who ever speaks the truth is destined to perish.
We should also be shocked that the premier and most other members of PACT use Sandra Hill’s gossip site as their mouth piece. Truly worried about the future of this country if they can’t even use a reputable source as a news outlet. CIG tv for one would be great.
Sandra Hills marl road is crap. She opens her big mouth and makes unsupported allegations. She had a go at me and what proof did she give. Bugger all.
She is all smoke and mirrors.
Two more brain cells she would be a tree.
😁😁😁😁
Chris, that’s an insult to trees.
Dart likes to purchase distressed debt. This might appeal to him later if there is anything left in Cayman that he doesn’t own by then.
I hope that’s not the case cause I could only imagine the forfeiture of more real properties and equity ownership within public-private partnerships. We all know when Caymanians get desperate for cash (or experience even short-term financial diffuculties) the first thing they do is sell-off their birth-right i.e. real properties/raw land and regret it later. The Goverments of the past or present is NO DIFFERENT. DART has already gobbled-up all the prime real estate, including many crown properties, on island and for the lack of proper planning and some croonism. An approach that paved the way for the Cayman Islands to be heavily depend on one billionaires wealth & investments to the demise of its people. This high-value bond if not managed with extreme care can be disastrous, if ever their is a default(s) that will require a privatized bail-out. Remember, the Cayman Islands is highly dependent on offshore investors who big stake on island often come at “one-time fees” for a lifetime of residency. There is no direct taxation on private investment & long-term tenure to supply the public coffers with recurring income. Thus, in my opinion, $400K USD is to much money to finance projects[???] & socio-economic stability 30 years into the future.
Dart will not live forever but his “corporation” will be left behind.
Perhaps that was his long term plan as he has had politicians in his pocket for years, who granted his status who is still in power, and now coming to fruition.
Borrowing money for handouts. What a great idea. How about trying to lower the cost of living which would have the greatest impact on the working class. Remember when they raised duty from 20% to 22% and said it would be temporary? Turned out not to be very temporary. How about when the put an extra $1000 of duty on cheap car imports to reduce the number of cars on the road, but offered no reasonable public transportation alternative. Did that reduce the number of cars? No, because people still need transportation. All it did was make it more expensive for them. Every time you turn around they are raising fees or coming up with new ones that keeps increasing the cost of living. And now they say we should borrow money to help people. Complete clown show.
Excuse you, reverse mortgage to a person on pension who owns their on house is not a handout! Give pension money in full if that is what the pensioner wants and do what they will with it instead of living on 1,000 a month and paying 300 a month out of that on health insurance which is a waste of money. Sort the real problems and not the ‘handout’ pensioner homeowners.
So let the private sector provide reverse mortgages. That way no room for corruption and mismanagement of assets.
buying votes pure and simple. In a few years we will be another Jamaica
With no mountains, agriculture, or natural resources.
Lots of Jamaicans though.
Where’s the “lol” button
😂😂😂
US interest rates are forecast to increase 4 times this year and we may well be entering a run from historic lows (currently), back to historic highs. The Minister’s bond is very likely to be a fatal bullet, this is suicide economics.
Agreed. The current fixed rate of 3.2% is very good and will be excellent this time next year after 3 or 4 rate increases.
What about floating this to DART? He already has experience in dealing with these issues and financially assisting poor countries And then owning the debt. Better to know who you are dealing with…
He doesn’t financially assist poor countries. He buys distressed debt (bonds). That means instead of paying 100% of the principal, because sellers are not getting the promised interest payments, he buys them for say 10 to 30% of face value from people desperate to unload their bad investments. Then he goes after the governments to pay up on the bonds. Holding enough of the bonds & being wealthy enough to pursue a lengthy pursuit for payment or debt restructure (getting new bonds in place of the old ones with the hope the country can settle their debts over a longer term).
F$Ck Dart and his Minions.
LOL
Or…they could review the many convoluted, overlapping and based-on-who-you-know social welfare programs, cut the considerable waste and focus on actually helping those who really need it. Underprivileged children, impoverished seniors, the disabled and battered women have to rely on private charities to assist them while able bodied adults avoid working because collecting welfare from various sources is too easy and no one expects anything more of them. A Government’s success should be measured by how it looks after the most vulnerable, not by how much money it throws around.
Yes but that wouldn’t get Mac Kenny and Chris re-elected..
Have to look after the bredren dem to get their wotes.
One of the best replies I’ve ever seen on this site. 👏
But if they feed every kid instead of just the hungry kids, then they get to remind ALL of the parents at election time that they fed their kids.
This is a big waste on the Brac. So much food gets tossed, it’s disgusting.
I don’t suppose an attempt at reducing waste and expenses would occur to Chris . After all “what’s in this for us” is the UDP style of business.
Best comment yet
The Opposition Leader is not playing politics as claimed by Minister Saunders. On the contrary he is rightfully sounding the alarm that the 30year bullet bond is a terrible financial decision despite what is being earmarked for. PACT will leave a legacy of debt for our grandchildren to tackle. Kicking the can down the road to deal with social urgent matters is no excuse.
This will break the backs of the middle class workers who are the ones called on when government will need to raise fees to cover the interest payments. Your middle class will find work elsewhere and then what?
Why are we not sticking with the commercial banks?
Be careful Cayman or you will end up being owned by the Chinese or similar that will not renegotiate when the $400 million comes due or they will renew at a huge sacrifice to the country. Look no further than to our neighbors in the North.
Do not leave this discussion only for the Opposition. Go to your politician or get on media and say no to this insanity!!
The best reason to do business with the Chinese…they are incredibly generous in showing their gratitude to those who facilitate deals.
Yes, the British facilitated a wonderful deal with Hong Kong? Not sure I want to kow tow to the Chinese Communist Party as Hong Kong is doing now.
Are you really serious?????? I hope you’re joking. They are horrible, horrible people. Ask Jamaica and Bahamas how it worked out doing business with them?
The Chinese are already buying up this place. We are doing business every day here with the friends and associates of the Chinese Communist Party.
Wake up people.
Their gratitude is already being distributed to some key decision makers in our society.
Saunders trying to deflect by saying the opposition are playing politics. People need to wake up. Do they think we are fools.
This is an incredibly bad idea.
Well that took longer than expected. Already out of money, but we can relax with Chris at the helm. He know’s how to run his mouth.
Well, you have to admit Mr McTaggart loves to spend money! It’s just sad that it is the people’s money, and not his own.
Surely you mean Mr Saunders
Who else finds this insane?
What could possibly go wrong with the CIG getting into the business of reverse mortgages?
Generally speaking massive borrowing to cover handouts to people is a very very bad idea.
Well, some very successful young Caymanians are doing quite well as slum lords. If government gets into the reverse mortgage business they will be able to given them competition once they take possession of the distressed homes.
Good point 5:08. I am amazed by how many young Caymanians are doing well as slum landlords.
The good thing about a 30-year bullet bond is that most of the ba$tards who want to saddle our children with this debt will all be dead when it comes due.
Our government and SAGCs still can’t provide the minimum acceptable standard of accountability and transparency to earn a clean annual AG review. There’s no way any serious name-brand investment bank, as underwriter, would take on our bullet bond issue today, without a generous 300-400 basis point premium baked-in over our UK-backstopped credit rating as a dependent territory. In fairness Roy is also right to caution that we can’t afford this, knowing firsthand that we don’t have the ordinary fiscal discipline to safely see it all the way through. The bullet feature is particularly tricky as a sleepy debt finance trap requiring both hands on the wheel at all times, and where we would have a looming catastrophic default risk extending far into the political future. Among the most active vulture capitalists in the debt trap arena are Dart and the Republic of China, so guess who those eager bond holders will be, and try to imagine their default demand list will look like 30 years from now. Our CFA group could probably come up with some better loan tool ideas in a 30 minute brain storm, if Saunders were to ask.
UDP tactics all over again. I smell Mac. This makes the Nation Building Fund look like peanuts.
This IS Mac!!!! Also a lover of Jamaica style politics, the speaker is.
Dont worry, interest rates are just about to start rising. 100% the time to get loaded on credit!!!!!!11!111!!
Can I buy these for my PR?
Hopefully you can get an allocation .
Are you both special needs?
So those that get reverse mortgages will have nothing to leave their children? What’s Government going to do with the houses?
“Given that Caymanians are forced out of work at 65 on inadequate pensions” … what is the long-term structural fix that any politician/government intends to implement?
Having heard anything. CIG, Amy Wolliston (Labor Director), CIMA , etc. have all gone silent. I am assuming they’ve fixed the pension problems and pensioners, active or vested, can enjoy the needed (e.g. market & investments) adjustments to enjoy a livable pension.
Only time will tell because CIG ain’t saying sh!t about the notable robbery that was happening within the many pensions plans across these islands.
so instead of being prudent and trying save money and reduce spending…this nonsense shambolic government is planning on increasing spending in the face of looming international recession???? this is bonkers!
chamber of commerce, cita and anybody with a little common sense needs to petition the governor or the uk right away.
you must have missed the memo, the UK ‘leaders’ are partying in the back of Downing St, sometime around the when they handed out their illegal PPE contracts to buddies.
https://www.theguardian.com/politics/2022/jan/12/use-of-vip-lane-to-award-covid-ppe-contracts-unlawful-high-court-rules
pact decoded:
we are borrowing to cover our unsustainable over-spending.
welcome to wonderland
time for the uk to step back in and take control of our finances.
Fools rush in where angels fear tread. This is for this government to have even more money to waste.
Kick the can down the road. Give the people enough charity so you can get re-elected in 3 years time. I really fear for this country’s long term outlook if this goes ahead. Bullet bonds are the worst type of debt and will just handicap future administrations.
The cost of borrowing is about to jump. Interest rates will rise before the end of the month.
The bond is a bad idea, and reverse mortgages simply prey on the elderly and poor.
Reverse mortgages in theory are actually an extremely good solution for the elderly in Cayman who own a property but do not have enough income to get by. And the fact that government is looking at providing this could also be a good thing, as they would presumably ensure that the terms were fair. A Caymanian of say 65 with a property owned outright worth say $500,000 might borrow 50%, which sensibly invested could provide £1,000 per month (whilst allowing some degree of capital reduction), to add to whatever other income they have. They would have the right to remain in the house for the rest of their life, and presumably have a “no negative equity” guarantee. The property potentially reverts to the lender, Government, on death.
This is far better than said Caymanian living in abject poverty but being able to pass on the valuable property to their children on death. Reverse mortgages are widely available in the Western world but typically run by large insurance companies and finance houses.
I say Expats should pay a 10% tax who make more than $1million a year to support hard working Caymanians. This is only fair. 2nd pension fund withdrawal from those grossly overcharging under performing pensions is a fantastic motion. Here here!
I say that you should stop blaming expat for our own internal failures to train our children for the hi-tech jobs of the future.
Expats pay enough in work permit fees, annual company fees, PR fees and drive Stamp Duty revenues for CIG.
Yup you got all the answers…..so force expat business owners to hire unemployable Caymanians and then take money off the expat rich to pay the hard working Caymanian’s a “bonus” on top of their hard earned salary. Please enlighten all of us which post you hold in the ministry because quite clearly you work for the government with brain dead ideas like this.
Fine but only expats who pay the tax are allowed to vote.
Hahahhahaha. Hahhahahhahaha
No one would ever pay, they’d just leave to Bahamas or Turks. Stop thinking Cayman is so special.
So Caymanians making more than a million a year would be exempt, 2:25? Seriously?!
Milk the foreigners rather than actually sort your own over-spending issues out huh?
What a transparently immoral and xenophobic approach not to mention counterproductive when the wealthy (who out far far more into the government coffers than they take out) decide to leave to other locations.
All a consequence of the ongoing mass importation of poverty, the destruction of the Caymanian middle class, and inept and even corrupt actions by some in the civil service. Has anyone even read the Immigration Act. Do the understand that all the answers are there?