Virgin Islands Government Collaborates with Commonwealth Secretariat to Assess Debt Management Practices

The Government of the Virgin Islands has recently conducted a Debt Management Self-Assessment in order to evaluate the effectiveness of its current processes and institutions for managing public debt.

The assessment, which took place from September 18 to 29, was facilitated by the Commonwealth Secretariat’s Debt Management Unit. It covered all aspects of government debt management functions.

Dr. Drexel Glasgow, the Acting Deputy Financial Secretary in the Ministry of Finance, explained that the objective of the assessment was to identify both strengths and areas for improvement. This information will be used to provide technical assistance over the next five years. The government aims to strengthen its capacity and institutions to effectively and sustainably manage public debt.

Dr. Glasgow emphasized the importance of the assessment, stating that it will not only evaluate current debt management practices but also provide recommendations for improvement. The analysis from the report will serve as a guiding document for any future reforms in debt management.

After the assessment is submitted, the Commonwealth Secretariat will work on developing a five-year program to implement the identified measures. This program will help the Virgin Islands implement necessary reforms and enhance its debt management practices.

The government’s decision to undertake this assessment is part of a broader reform effort that began in 2022, following recommendations from the British Virgin Islands Commission of Inquiry Report. The government sought assistance from the Commonwealth Secretariat to conduct the Debt Management Performance Self-Assessment.

Mr. Mac Banda, the Adviser and Acting Head of the Debt Management Unit at the Commonwealth Secretariat, expressed his satisfaction with the ongoing collaboration between the two entities. He highlighted the extensive technical assistance and capacity-building support that the Debt Management Unit has provided to the Virgin Islands in the past. Mr. Banda also mentioned the Commonwealth Meridian tool, which the Virgin Islands has been using for public debt management. He expressed his belief that this new journey of partnership with the Ministry of Finance will have a positive impact on the economy and the lives of the people in the British Virgin Islands.

The assessment was jointly led by Michele Richmond-Phillips, a Policy Analyst in the Macro-Fiscal Unit, and Delia Cox, a Debt Management Adviser at the Commonwealth Secretariat. The team conducted discussions with various departments, teams, central government bodies, statutory bodies, and the private sector to ensure that the assessment accurately captured the unique context of the country. This approach will help tailor the program of support to be more effective.

During the assessment, the team also met with Premier and Minister of Finance, Dr. Natalio Wheatley, to discuss some preliminary findings. Dr. Wheatley expressed his gratitude to the Commonwealth Secretariat for their ongoing partnership and support. He acknowledged the critical timing of the assessment and its potential to bring positive changes to the Virgin Islands’ debt management practices.