🏦 Cayman Islands Government debt under control, but future liabilities pose challenges

The Cayman Islands Government (CIG) has managed to keep its debt under control, with the current standing at $429.9 million, well within the requirements of the Public Finance and Management Act. However, the future liabilities, particularly the $2.2 billion healthcare liability, pose a significant concern as they are not included in the accounts. The Unfunded Pension Liability, a part of the annual accounts, stood at $343.5 million at the end of last year. 📉

In addition to its own debt, the CIG has loaned money to two government companies, including the Cayman Turtle Farm, which continues to operate at a loss. The government also guaranteed a loan programme with five local banks, with the amounts guaranteed equal to 50% of the outstanding principal and unpaid interest. Despite these efforts, the government's $2.2 billion unfunded healthcare liability remains a major concern and has been repeatedly noted in the auditor general's annual reports. 🏥

Financial Secretary Kenneth Jefferson and Deputy Governor Franz Manderson have both stated that placing such a liability on the books would undermine the entire public finances and put the public purse into the hands of the United Kingdom’s government. However, a solution to this problem remains elusive. 🤔