Jersey has denied it is suffering similar financial problems to the Cayman Islands, which has had a request to increase borrowing denied by the UK government.
Reacting to media reports claiming it too may need a loan to cover its fiscal deficits, the Channel island highlighted that its Goods and Services Tax (GST) and zero-10 tax system were adequate to allow the government to balance its books.
Jersey’s government also pointed to a Strategic Reserve Fund holding £500m, or 12% of the island’s annual economic contribution from industry.
A relative lack of impact from the financial crisis was also singled out, with only “modest job losses to date”.
Jersey’s government was reacting to reports that it could call on the UK government for a bail out, as the Cayman Islands have done and been rejected, instead being advised to increase its tax base to cover a growing deficit.
