Financial Policy Council On Economic Recovery

August 24, 2020

The Financial Policy Council [FPC] held its fourteenth meeting on July 23rd via teleconference, with the members highlighting “that a comprehensive Economic Recovery Plan should be put in place as a matter of urgency.”

A Government spokesperson said, “The Financial Policy Council [FPC] held its fourteenth meeting on 23 July 2020 via teleconference. All members were able to participate on the call.

“The focus of the meeting was a discussion of Bermuda’s economic recovery strategy to address the impact of the COVID-19 pandemic. It involved a continuation of an on-going dialogue that began during a special FPC teleconference held on 10 April.

“FPC members expressed their support to the sustained efforts made by the Government in relation to containing the public health impact of the pandemic as well as ensuring emergency financial support to those in need of it. Members also supported the swift action taken by the Bermuda government to address the extraordinary financial needs generated by the fiscal imbalances caused by Covid-19.

“In this respect, Members commended the Government for proactively engaging the international capital markets to not only fund fiscal deficits but also re-finance stocks of existing debt falling due in the short and medium terms. In this respect, Members considered the recent debt raising ceiling from $2.9bn to $3.5bn to be a wise decision.

“FPC members discussed a range of strategic matters critical to ensure Bermuda’s economic recovery, and to underpin servicing of the inevitable increase in debt, and highlighted that a comprehensive Economic Recovery Plan should be put in place as a matter of urgency.

“This would need broad political and societal support as well as appropriate implementation resources. The discussion covered concrete areas of the economy which would need to be part of this plan, and which were deemed best placed to drive the recovery.

“In relation to concrete areas of the economy on which to focus recovery efforts, FPC members highlighted the many strengths which Bermuda could draw on, both in the hospitality and tourism sector which is likely to require some reinvention, and in building on the strengths of acting as an innovative and well-regulated international financial centre.

“Importantly Members urged the Government to also consider critical factors that enable -or hinder- economic growth, such as immigration. Members acknowledged that Bermuda’s economy had been suffering from over a decade of anaemic performance before the Covid-19 outbreak and that the pandemic offered a unique opportunity to escape this by undertaking a bold reform agenda.

“In relation to building the necessary political and societal support, FPC members recommended that the economic recovery strategy should be inclusive and should consider in a sense of partnership the broadest possible range of stakeholders.

“Further, in order to ensure the effective implementation of economic recovery measures FPC members recommended that the government should give full consideration to the need for appropriate resources to be allocated to all aspects of the initiative, with a robust and comprehensive project management approach to managing the recovery.

“In addition to the discussion on economic recovery, the following topics were addressed:

  • Recent developments with respect to Bermuda’s engagement in tax related initiatives underway at the OECD and the European Union
  • Recent work underway at the Bermuda Government and the BMA in respect to continuing with the development of a recovery and resolution framework for Bermuda banks
  • Work underway at the BMA on the impact of COVID-19 on cyber risk management and underwriting in the international insurance sector
  • Progress with respect to the development of Bermuda as a competitive, responsively-regulated, FinTech jurisdiction

“The next formal meeting of the FPC is scheduled for December 2020.”

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Comments (6)

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  1. Ringmaster says:

    So the FPC met a month ago, and apparently all that has happened is the increased debt. They next meet in December. What’s the point of this as clearly there is no urgency in their minds. Bermuda however is in a critical economic state, bordering on entering ICU.

  2. Noah James says:

    The Financial Policy Council today has highlighted “that a comprehensive Economic Recovery Plan should be put in place as a matter of urgency.” so Burt holds an election which halts any plans (there might be …) to get the economy going again and people back to work…

  3. sandgrownan says:

    14 meetings? fourteen. FOURTEEN. FFS. Get on with it.

    “Members acknowledged that Bermuda’s economy had been suffering from over a decade of anaemic performance”.

    No kidding. It took 14 meetings to figure that out? What about hte 10 years of rapid decline and overspend before that?

    And barely a mention of immigration reform, and nothing about reducing spend particularly in the bloated civil service we neither need, want nor afford.

  4. red rose says:

    it seems everyone knows there is an urgent need for an economic plan except Burt who puts everything on hold for a general election. go figure

  5. Unbelievable says:

    I know this committee is full of business leaders but this is beyond ridiculous. This reads as “business as usual”. It’s just calling for this or that.

    I’m telling you lot, the PLP have NO IDEAS on how to turn things around. They just flat out don’t and no PLP die-hard can site an idea. I’m waiting to hear however.

    But 14 meetings later and this is what they present? Yes secure the banks and any other large institutions, I agree but no one on this committee is even a small business owner. Were is the small business owner in all of this?

    PLP voters – please wake up and demand your Govt to get it’s act together.

  6. Joe Bloggs says:

    “Importantly Members urged the Government to also consider critical factors that enable -or hinder- economic growth, such as immigration. Members acknowledged that Bermuda’s economy had been suffering from over a decade of anaemic performance before the Covid-19 outbreak and that the pandemic offered a unique opportunity to escape this by undertaking a bold reform agenda.”

    No! There must not be immigration reform! Everyone surround the House of Assembly and prevent this Government from selling our future to foreigners!