BVI Premier Announces Revenue from Financial Services to Drop off

When addressing the House of Assembly during the budget debate, BVI Premier and Minister for Finance Andrew Fahie has said the British Virgin Islands’ revenues from the financial services sector dropped off by roughly US$30 million. He also said he had to put several projects on hold, including those in the health services, because he knew that this drop off would happen.

Meanwhile, the financial services sector was expected to see boom this year, which could be the result of the EU insisting that the territory implement the Economic Substance (Companies and Limited Partnerships) Act which makes it mandatory for offshore financial services companies to be physically present in the BVI territory. This Act was passed to remove the BVI from the EU blacklist on non-compliant jurisdictions. By words of the Director of International Business Neil Smith, due to opening physical offices the number of companies in the jurisdiction would have been reduced, but the number of persons involved in the industry was likely to triple.

2020 Budget Passed by the House of Assembly

Last week, the House of Assembly successfully passed the budget for the year 2020 with amendments. According to BVI Premier and Finance Minister, Hon. Andrew Fahie, this was the first time in many years when the budget was approved from the first time. He stated, however, that there are some challenges ahead for the BVI.

In his budget speech last month, Hon. Fahie announced a projected revenue of US$414 million, while the recurrent expenditure is set to be US$327 million. Capital expenditure is expected to be US$65 million, with US$6 million to be contributed to the funds. Also, US$14 million are planned to be used by the BVI Government for principle repayment on debt. 

The Premier also mentioned the two major economic pillars of the jurisdiction, financial services and tourism, and the challenges that should be met in these sectors. No new taxes were announced for 2020.

Digicel Announced the Appointment of New CEO

Digicel British Virgin Islands announced the appointment of the new Chief Executive Officer (CEO). Kevin Smith, who performed the duties of Commercial and Operations Director for Digicel from 2013 to 2015, as well as worked as Managing Director of New Direction Business Consulting and held other senior posts at the BVI Post Office and Citco BVI Limited, came back to continue his work in the mobile operator.

Smith has 25 years of experience in commercial and management positions across government and non-government organisations in the British Virgin Islands. His recent role was Chief Operating Officer of the Telecoms Regulatory Commission in July 2018. 

Digicel’s Group CEO Jean-Yves Charlier congratulated Smith on his appointment to lead Digicel BVI having said in his comments: “Along with his strong grasp of the Digicel DNA based on his previous experience with us, he brings the right mix of commercial and customer understanding coupled with a deep passion for technology and development which can only be of benefit to our customers in the BVI.”