Government debt falls below $400 million
(CNS): The public sector debt has dropped to $396.8 million, as at 31 March 2025, from 445.7 million at the same point last year. However, the government finances are still in a precarious situation with a looming deficit at the end of this year unless the new government can reduce spending. Nevertheless, with only $48.1 million due within a year, the public purse is likely to weather the coming fiscal storm.
As the treasury continues to manage and pay down the debt, the Cayman Islands Government also has over $614 million in the bank, placing significant funds in fixed deposits. According to the Q1 2025 – Unaudited Quarterly Financial Report, the CIG still has significant future liabilities in relation to healthcare and pension provision for public sector workers, and it is also guaranteeing a number of other loans.
The Unfunded Pension Liability stood at $327.7 million at the end of December for the defined portion of Public Sector pension plans. The CIG also has an unfunded liability for healthcare that amounts to CI$2.4 billion, but this is not reflected in the government’s accounts.
The Government Guaranteed Loan Programme for local businesses currently amounts to $5.3 million for ten loans, but this loan initiative closed in 2021, so the government’s exposure will not increase. To date, only one bank has called in the guarantee of one loan for just $21,300, which has been paid. However, no provisions have been made in the financial results for the possibility of a default on the remaining loan amounts.
The CIG gave an interest-free loan of CI$50 million to the Cayman Islands Airports Authority for capital works at the various facilities, and on 31 March 2025, the balance remaining on the loan is $45.8 million. A CI$10 million interest-free loan has also been made by the government to the Cayman Turtle Conservation and Education Centre, all of which has been drawn down and remains outstanding as a repayment start date has not yet been established, officials said in the audit.
See the first quarter report in the CNS Library here.
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Category: Government Finance, Politics
Government Borrowings, Bonds and Yields explained:
https://www.bbc.com/news/articles/ce85rl65j48o
This is the declared official issued and acknowledged debt, which conveniently omits billions in maturing public liabilities in order to comply with FFR.
Unfounded pension and healthcare liabilities are typically not reflected in the on balance sheet national accounts, nothing new here. This does not mean they should remain unaddressed regarding their settlement. Just saying!
They are founded in reality all right, just unfunded in provision. The liability still exists and is LARGE.
Maybe
Great news, we should putting solid gold commodes in the Brac High School to celebrate.
What, and not use the platinum ones that were planned???
They’re for the new prison.
Can we please enlighten the public how the debt grew to over $400m in 2022 because Premier Andre and Wayne ironically neglected to mention that little part over their 6 months of campaigning.
Our debt service obligations are the echos of PPMs past. John Gray, Clifton Hunter, etc etc. There’re also billions more unreported unfunded public pension and healthcare liabilities coming due.
Well this isn’t true at all. PPM lowered debt from $574m (outstanding after taking over from UDP in 2013) every single year until 2020 leaving it at $249m. PACT then increased it back up to $507m from 2020 to 2022, dropping to $454m in 2023 before UPM took over. Research isn’t hard.
The PPM conspired with Ken Jefferson to hide the true public liability position. It’s called cooking the books. It’s criminal.
What specifically are you suggesting they hid?
Please reassess pay grades A to H.
https://www.gov.ky/publication-detail/cig-salary-grid-as-at-january-2025
Only people who truly EARN such salaries should hold those positions. If up and coming civil servants do not honestly consider respect them as leaders, it is time to make the hard decisions. Save money where it really counts, starting with the MPs.
You seriously expect MPs to vote themselves a pay cut?
Actually, I do. I would.