Officials in the United Kingdom’s Foreign and Commonwealth Office have ‘agreed in principle’ to green-light CI$155 million of borrowing that will allow the Cayman Islands to sustain its operations through the next budget year, which begins 1 July.

The CI$155 million of borrowing is CI$52 million less than the $207 million requested by the Cayman Islands Government.

According to a joint statement released Tuesday by Premier McKeeva Bush and UK Foreign Minister Henry Bellingham:

“The Minister (referring to Mr. Bellingham) welcomed the positive action taken to date and commended the Cayman Islands’ Government on the measures proposed in their three-year plan to restore public finances to a sustainable footing.

Further commenting after their meeting in London Tuesday, the minister and premier said: "We had an excellent meeting today, which we believe will be the start of a new and positive partnership between the UK and the Cayman Islands."

Mr. Bush also said that Cayman would not be implementing any form of direct taxation in the upcoming budget. 

Please see full details on this story in Wednesday's Caymanian Compass....