Biting the debt bullet

Posted: December 3, 2012 in Bermuda, bermuda politics
Tags: ,

Following on from my recent posts about PRCs and Bermuda’s public debt, Nathan Kowalski’s Financial Ramblings From The Rock column in today’s Royal Gazette is well worth a read.

In it, Kowalski, who is a chartered financial analyst and chief investment officer at a Bermuda investment firm, sets out just how serious the island’s debt is and some possible solutions. He says the Bermuda Government needs to adjust its budget by $200 million (either through cuts or increased revenue) to avoid an alarming increase in the debt-to-GDP ratio that could potentially send the island into bankruptcy. Just to give you an idea how much that is, it is equivalent to cutting the entire Department of Health (current spending $191 million).

He says measures to grow the economy must include a change in immigration policy. “Without a pro-immigration policy, it is very unlikely that Bermuda will be able to grow economically,” he writes. “To encourage retention a permanent residence programme and/or full citizenship needs to be offered to foster loyalty and a commitment to the country from future immigrants and current ex-pats.”

 

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