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.
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