Exclusive: UK ready to parachute in experts to help deal with debt

Britain could parachute in financial experts to help Bermuda back into the black, the Bermuda Sun can reveal.

Governor George Fergusson said the UK government could second experts to Bermuda to help it deal with its mounting debt.

Mr Fergusson said: “The UK, stimulated by the Governor, can offer technical assistance. The UK wants to see Bermuda succeed, which for the most part it has done spectacularly.

“If someone wants advice or an extra person seconded, if Bermuda wants that, it can be arranged.”

It is thought a specialist or specialists could come from either the UK Treasury or the Bank of England, although Mr Fergusson declined to comment on specifics.

But he said: “It would be an ad hoc arrangement at the invitation of the Bermuda authorities.”

Mr Fergusson said that the idea of seconded experts was not new, as UK specialists had been drafted into organisations like the police and Bermuda Regiment.

He added: “The UK and the Governor are interested and pay attention to the finances of Bermuda. We are interested because we are interested in the welfare of Bermuda generally.

“There are big business ties between the UK and Bermuda, so we are also interested from that perspective.”

Although Britain would not accept any responsibility for Bermuda going bankrupt, the country’s position as an Overseas Territory would mean considerable embarrassment for the UK.

Mr Fergusson said: “There is a degree of reputational risk if Bermuda has a complete economic breakdown, but there isn’t a larger liability.

“The constitutional position is different from some other Overseas Territories where the Governor has the discretion to approve, or disapprove, certain financial measures.”

Mr Fergusson said Government was aware that Britain was prepared to step in with expert assistance if requested.

The Governor has already said that he and the UK government are satisfied the island is taking steps to reduce its debt – despite red flags on the island’s economy from ratings agency Standard & Poors and investment watchdogs Moody’s (see separate story on page nine). But he warned that all the parties involved were well aware that there would be “no quick fix.” n