Coronavirus: Jersey to borrow up to £500m for economic recovery

The borrowing will give "flexibility" to address the needs of the economy during and after the crisis, according to the government

Up to £500m in borrowing will be made available to help Jersey's economy through the coronavirus crisis, the Government of Jersey has announced.

The island's Treasury said the funds would be used for "bold fiscal stimulus measures" to support economic recovery.

Jersey entered the first stage of its four-tiered exit strategy from lockdown on 10 May.

The government said a flexible loan arrangement was an "insurance policy" against the unknown cost of the crisis.

The borrowing is being structured as part of a revolving credit facility (RCF), a financial arrangement which allows continued borrowing up to a set credit limit, dependent on the repayment of debt.

The loans will be initially available for two years and are being provided by the Jersey branches of Barclays, Butterfield, HSBC, Lloyds and RBS International.

'Support the economy'

The money will be used to support islanders, government finances, and local businesses, the government said.

The scheme has been permitted after changes to Jersey's public finances law were approved by the States Assembly.

Minister for Treasury and Resources Susie Pinel said the arrangement gave the Treasury the "flexibility of decision-making that is needed in these challenging times".

She added it would enable them to "draw on the funds as and when we need them".

Deputy Pinel said: "Having the RCF in place allows me to approve bold fiscal stimulus measures to support the economy."

Guernsey's government set aside up to £650m for coronavirus recovery at the beginning of May.

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