Interest Cost Savings
The efforts and strategies implemented by the Government will save the Cayman Islands a total of CI$6.2 million in interest costs over the next ten years.
The Ministry of Finance and Economic Development has negotiated lower fixed term interest rates for five (5) of Government's existing loans, held with a local commercial bank, that totalled CI$88.4 million as at 30 November 2013.
The new and lower fixed term interest rates range from 1.25% p.a. to 2.71% p.a., down from levels of 2.82% p.a. to 4.25% p.a. for the preceding five years of 2008-2013.
The interest rates are now fixed for the remaining life of each of the five (5) loans.
The Minister for Finance and Economic Development, Hon. Marco Archer said: "The Government is very pleased with the negotiations and the achievements of the Ministry in meeting the goals and objectives of the Government to be fiscally prudent and reduce expenditure. For fiscal year 2013/14, CI$0.6 million in interest cost savings will be realized and will have a positive impact on the 2013/2014 budget surplus and debt service ratios, while building public trust and confidence in the Government's fiscal performance."