The usurpers of the Malvina Islands are planning to carry out an ambitious investment plan for the next five years, worth £350 million, equivalent to 449 million dollars. To do so, they are exploring financing options in the capital market.
The project includes the construction of a new port terminal, a power plant, and improvements to housing, roads and waste disposal systems.
As pointed out by the MercoPress portal, the person in charge of explaining the scope of the situation, and the reasons, was the Secretary of Finance of the colony, Pat Clunie , based on the authorization granted for this type of operations by the Executive Council of the Islands, at its last meeting in November.
In a first stage, the colonial regime is seeking to obtain loans of £100 to £150 million, approximately 128 to 192 million dollars, to finance the investment plan.
The illegal Malvina Islands authorities are reportedly exploring options such as short-term loans backed by liquid assets and long-term loans on the capital market.
However, Tracey Prior, Senior Manager of the Islands' Treasury, explained that the issue was complicated since loans or bonds backed by the United Kingdom institution in charge of financing exports had been requested, related to the operation of the port that involved the legendary Harland & Wolf , but that it did not come to fruition because the century-old company fell due to an administration overwhelmed by debt and with no desire for a rescue by the current British Labour government of Keir Starmer.
However, the budget for the new port remains in place, as does that for the accesses, and "we also face a significant reduction in government finances over the next five and a half years, in order to be able to undertake the ambitious plan of capital investment works that we hope to be able to complete," said Clunie .
To this end, they have modelled scenarios of a decline in tax revenues and in the fishing industry, but they recognise that the economic situation may be volatile.
As control measures, a "survival" fund will be established to deal with the debt and quarterly monitoring and reporting mechanisms will be implemented.
The government of the United Kingdom of Great Britain and Northern Ireland will have to approve the borrowing operations of the usurpers due to the status of British Overseas Territory granted by English colonialism.
The illegitimate government of the usurpers of the Malvina Islands is not only after a long-term loan, but has also changed the managers of the Islands' investment fund. The new manager is HSBC, which will allow it to access a loan from Lombard HSBC.
Prior said the short-term loan would be backed by the island's government's liquid assets, and he anticipated that HSBC could provide about £40 million, or about $51 million, to address cash flows and liquidity for the next 12 months.
The ambitious investment plan by the Malvinas usurpers represents a bet on the economic future of the territory. However, its implementation entails significant risks that will need to be carefully managed. Sound financial planning, transparent management and UK support will be essential to ensure the long-term success of this project.
Clunie said that oil has not been included in any of the models or as a possible future source of income, but “we have modeled a scenario with a fall in corporate tax revenues, the losses that could be generated by the non-harvest of Loligo, and the estimates of a lower collection for subsequent years,” MercoPress reported.
“We may have underestimated, or even overestimated, but we cannot design every possible model. The five-year period gives us the flexibility to make changes as we see fit. If the fishery does indeed collapse, we will have to make very serious decisions… to pay for the budget and the financing,” said Clunie.
As you may recall, the government of the Islands at one point asked the British government to provide a guarantee for the issue of bonds or some other resource to finance major investment projects such as the development of the oil industry. But London explained that its policy was one of full transition towards green or alternative energies and opposed to the development of hydrocarbon sources, MercoPress reported.
It should be noted that the further development of the Malvina Islands and a new port facility for the next half century, essential for the movement of goods, fishing and tourism, has been somewhat complicated by the issue of cost overruns, as a result of international inflation, and the misguided policy of contracting companies to proceed with the dismantling of the current structure and the assembly of a new one.
And we must not forget that the usurping government of the Malvina Islands has spent millions of pounds on studies and consultancies, many of which have been heavily criticised for such wasteful expenditure.
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