Six principles of responsible financial management

The Public Finance Management Law features six principles of responsible financial management, which govern the fiscal policies of the Cayman Islands.
 
In the fiscal year 2008/2009 the Cayman Islands government operated with a deficit and was not in compliance with three of the six principles.
 
The non-compliance with any of the six principles requires the government of the Cayman Islands to obtain approval from the Foreign & Commonwealth Office of the United Kingdom to be able to incur any new debt.
 
After obtaining UK approval the CI government raised US$312 million in a government bond issue in December 2009.

 Six 96 Graph

1 – 5. See Graphs
 
6.     Financial risks should be managed prudently so as to minimise risk.  Insurance cover exists for key assets and major potential liabilities.  Hurricane preparedness strategy is in place