(BBC) The British government has agreed to guarantee a US$260 million loan for the Turks and Caicos Islands.
The governor of the British territory, Gordon Wetherall, has said that the money will mainly go towards refinancing a high debt burden at much lower interest rates.
The loan request for the Turks and Caicos Islands has been one of the central issues of local debate over how to correct the parlous state of the territory’s finances.
Governor Wetherell said that the funds, to be provided by Scotia Bank, will give the interim TCI administration time to tackle what he termed the dire fiscal legacy it inherited.
The TCI’s interim government is also considering tax reform and a number of revenue raising measures including the introduction of Value Added Tax.
In the new budget to be presented late March it is also proposed a make 25% cut in government spending.
The Turks and Caicos was placed under direct rule by the British government in 2009 following an extensive corruption investigation.
