CNN: “Bermuda Sitting On $63B of U.S. Debt”

The new U.S. Treasury report revealed that the Cayman Islands owned $265 billion of U.S. Treasuries and Bermuda “is sitting on $63 billion of U.S. debt,” according to a report by CNN Money.

The story said “Saudi Arabia stockpiled $116.8 billion of U.S. Treasuries as of March, the Treasury Department announced on Monday, ending four decades of keeping the figure secret.

“That makes Saudi Arabia the 13th largest foreign holder of U.S. debt, though well behind the $1 trillion-plus owned by China and Japan each. The Saudi figure was first reported by Bloomberg News based on a Freedom of Information Act request.

“Unlike with most other major owners of U.S. debt, the Treasury Department kept Saudi Arabia’s precise holdings secret since the 1970s. Saudi’s holdings were lumped together with that of other oil exporting nations, including Venezuela and Iraq.

“But that policy ended on Monday as the Treasury Department disclosed precise holdings by specific countries that were previously grouped together. A Treasury official told CNNMoney the move was made following a review aimed at trying to provide more “comprehensive and transparent” data.

“The new Treasury report also revealed that the Cayman Islands, a country of less than 60,000 people, owned $265 billion of U.S. Treasuries as of March. That’s the third-highest sum in the world and a reflection of the nation’s status as a major tax haven. The Cayman Islands does not have a corporate tax, encouraging multinational companies to store vast sums of money there to avoid taxes.

“Likewise, Bermuda, another popular tax haven, is sitting on $63 billion of U.S. debt. Previously both the Cayman Islands and Bermuda were lumped together in a group of Caribbean banking center nations.”

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