Bermuda still suffering scars of recession

Bermuda’s Finance Minister, Paula Cox said that country is suffering scars from the global recession which will take a long time to heal.



Since the financial collapse of major banking institutions last year, governments around the world have seen revenues shrink and have sought to provide stimulus to their economies to reduce the effects of the global recession.



According to Ms Cox, assumptions have had to be reassessed in light of the evolving circumstances.



Her remarks come amidst media reports that civil servants have been told to cut spending by 20 percent, and reduce travel costs and overtime to a bare minimum.



The Royal Gazette newspaper said civil servants have also been informed that 500 vacancies will not be filled as the island continues to reel from the global economic downturn.



The clampdown follows the release of new figures that showed that the government suffered a shortfall of more than US$100 million in its finances in the last fiscal year.