Britain give go ahead for Cayman to borrow

Britain has given approval to the Cayman Islands to borrow approximately US$60 million to deal with the government’s cash-flow problem.



The UK has also signaled a willingness to approve the remainder of the US$372 million sought by the territory to help plug a widening government operating deficit.



However, it is believed that London wants an agreement that the Cayman government will conduct an independent study into the impact of direct taxes on the country.



Cayman leader McKeeva Bush has rejected imposing payroll or property taxes, as recommended by London.



He favours spending cuts and indirect taxation as a preferred route to raising revenue.



Mr Bush is expected to outline plans to generate revenue today as he tables the country’s budget.