U.S. Virgin Islands Debt Issues

http://lawblog.vilaw.com/2014/04/articles/government-relations/could-the-u-s-virgin-islands-face-bankruptcy-issues-like-detroit/

http://www.businesswire.com/news/home/20150605005614/en/Fitch-Affirms-U.S.-Virgin-Islands-GRT-Bond

" I don't want to go to a place that might be facing some huge economic issues!"

OOPS!! You may want to research the online papers: The St Thomas Source and the Virgin islands Daily News. We are in pretty dire financial straights, but I don't think anyone is about to call the note(s). Our illustrious legislature shuffles the (borrowed) money from there to here and raises taxes to stay one step ahead of the bill collectors...

Our local papers, IMO, don't cover issues with much detail so you're better off checking financial analysis sites by googling something like Virgin Islands finances. A few financial firms issue reports from time to time.

We are nowhere near PR in debt problems.

And we're rolling in the dough from the Hovensa sale:-)

Even in bankrupt PR the life goes on and the sun is shining. Sales tax is now 11.5%. But regardless, people party like no tomorrow.

I don't know about the size of nepotism in PR comparing to VI but if gov Mapp lays off just half of his family members that are on gov payroll and relinquish his villa hotel rentals VI deficit will almost be resolved.

BTW the size of the gov here is amazing for the population of VI.

that money from hovensa ought to last about a year, knowing the government

Don't we have a $1.3 Billion Debt? Or is that just GERS?
The $200 Million coming in from Arclight would hardly make a dent but instead of paying down debt, budgeting, etc., our Government spends and increases debt.

Wonder who'll be benefiting from our Senators $1.5Million "slush fund" they received from signing off on Arclight deal?

that money from hovensa ought to last about a year, knowing the government

The $200 million was spent years ago.

Thank you everyone for all of your inputs!

I've been looking at how Mapp has been dealing with things, and that's what I was afraid of. It looks like little is being done to pay off their debts.

How much debt does the Virgin Islands really have? Because I'm reading Billions!

Where did you guys get that number?

Lol, sorry I want to be more knowledge about what's going on in my future home! 🙂

caribstx-true

I have always kept my money in stateside banks. Never had 1 issue in three years with renting places, buying cars or whatever. So if thats the reason you might not move here - its pretty silly. We just need to get the crooks out of office... doubt if that'll ever happen without the feds taking over. I wonder - can any long term residents remember a time that we had a GOOD governor?

I use my chase sapphire credit card for everything - for travel rewards - and pay it off from my stateside bank every month. Its also beneficial to have a stateside bank for ME as I bill my website design clients via pay pal and I've heard of issues with business pay pal accounts with our local banks. I use "pay pal Here" for when I sell photo prints at events or art shows and that wont work with a USVI bank for sure. For the past year I didn't have a debit card - as it got "stolen" in that ring we had with people stealing the CC #s and my bank wouldn't ship my card here. My sister could have shipped it to me but I really didn't need it.

How much debt does the Virgin Islands really have? Because I'm reading Billions!

$2.4 billion, according to Bloomberg, which is a reputable business source:

http://www.bloomberg.com/news/videos/2015-03-04/it-is-not-all-fiscal-paradise-for-u-s-virgin-islands

But where did Bloomberg get its figures? Nobody really knows for sure what the debt is, because the VI has never had a credible financial system with an unbroken paper trail.

The territories debt was discussed in depth about a year ago. The $2.4 Billion number sounds very familiar.

But where did Bloomberg get its figures? Nobody really knows for sure what the debt is, because the VI has never had a credible financial system with an unbroken paper trail.

The debt is due to amounts owed on bond sales, which is public information.

But where did Bloomberg get its figures? Nobody really knows for sure what the debt is, because the VI has never had a credible financial system with an unbroken paper trail.

The debt is due to amounts owed on bond sales, which is public information.

I wish these documents were available to the public though! Everything seems so secretive! Lol Even Bloomberg doesn't state it's actual source!

There are no secrets here.
Here is the USVI budget for 2015 (really enjoyable read, 680+ pages):
http://www.usvifinance.info/html/Budget/2015%20FY%20Budget%20Document.pdf

From that document, according to my rough calculations, the long term debt is about $2B, which is close to the $2.4 reported by Bloomberg. I am not an accountant, so I missed the 0.4B somewhere.

I do not trust the VI government to have or report any true or accurate info.

No one is calling notes. Debt is an illusion. Go have a rum cocktail, hug your family and stop worrying about "debt"

... Debt is an illusion. Go have a rum cocktail, hug your family and stop worrying about "debt"

Tell that to the bank that holds my mortgage 8-)!

I do not trust the VI government to have or report any true or accurate info.

Google is your friend

It's all available from other sources

... Debt is an illusion. Go have a rum cocktail, hug your family and stop worrying about "debt"

Tell that to the bank that holds my mortgage 8-)!

Touché. I meant Government debt. It obviously matters for us plebes

There are no secrets here.
Here is the USVI budget for 2015 (really enjoyable read, 680+ pages):
http://www.usvifinance.info/html/Budget/2015%20FY%20Budget%20Document.pdf

From that document, according to my rough calculations, the long term debt is about $2B, which is close to the $2.4 reported by Bloomberg. I am not an accountant, so I missed the 0.4B somewhere.

This has actually turned into a fun adventure! lol. Thank you so much! I'll see if I can find the missing $.4B (tu)