Economist article strikes positive note

A major new article in The Economist magazine, entitled, A Place in the Sun, explores the pros and cons of offshore financial centers, with specific references to the Cayman Islands.

The article, by Joanne Ramos, covers a wide range of themes, as it gives an overview of offshore financial centers, and the reasons for the expansion in their business in recent years.

The article argues that many of the concerns (especially in the present climate of concern over money laundering, and terrorism-financing operations) over offshore financial centers (OFCs) are often exaggerated. It also argues that well-run jurisdictions of all sorts, whether on- or off-shore, are good for the global financial system.

The article has won praise from Ted Bravakis, Director, Public Relations Unit, Portfolio of Finance & Economics, Cayman Islands Government.

Offshore debters welcomed

If offshore banks deal only with the big-time, at least one institution in The Bahamas has taken a really big risk on a really big spender.

Debts due Bahamian offshore banks had bounced erratically between $5 and $20 million from 1995 to 2005.

But last year, the secretive group reported a whopping $525 million in debts due Bahamian offshores. To reiterate, that's at least 2,500 percent larger than any one year over the past decade.

There's no telling which of the more than 240 licensed banks and trust companies made the move, as their balance sheets are not exactly available to the public.

The most reliable information comes through the Central Bank's Quarterly Statistical Digest, which reports the assets of offshore banks in conglomerated numbers.