GSD Welcomes News Of UK £500 Million Loan Guarantee “With Caution”

The GSD says it welcomes the news that the United Kingdom has agreed to provide a £500 million guarantee in respect of Gibraltar Government borrowing but “urges caution in its use.”

Roy Clinton the GSD Shadow Minster for Public Finance stated:

“The announcement of this unprecedented guarantee facility of £500 million from the UK Government can only be welcomed given the costs we have had to bear in respect of the COVID Response Fund which as at 30 June 2020 had absorbed £ 81.8 million.

“I look forward to hearing further details in Parliament in respect of the terms and duration of this facility and also information in respect of the bank willing to provide financing to the Government with the underwriting of this guarantee. As a condition for the facility the Gibraltar Government has agreed to a Contingent Liability Checklist and commitments on transparency and information sharing with the UK on which I will be seeking further information.

“I urge the Government to use this money wisely to tide us over this difficult period and not embark on any new expensive unnecessary projects which we can ill afford given our already excessive levels of borrowing.”