ABIC RESPONDS TO 2009 BERMUDA BUDGET

Hamilton, Bermuda. February 25, 2009

The Association of Bermuda International Companies (ABIC) today expressed broad support for the newly-released Budget, at a time when the business communities and governments of each jurisdiction must work in concert to minimize the impact of the worldwide economic downturn.

“This is an important budget, as it comes at a time when Bermuda and its people are facing unprecedented challenges, the full scope of which are still not clear,” said ABIC Chairman David Ezekiel.

“ABIC supports the 2009/10 Budget unveiled by Minister Cox last Friday, both in its tone and content,” he added. “Holding the line on taxes, cutting back on expenses and being prepared for a further mid-year worsening of the economic situation were all key factors, and these were all addressed.”
While the business community has expressed concern about the Government’s proposal to double its debt ceiling to $1 billion, and postpone annual payments of current debt in 2009/10, Mr. Ezekiel said they assume and hope these measures will be implemented only if necessary.
“We are comfortable that Government will use the increased borrowing limit with prudence and specifically to cope with the current environment,” he said.

“We are also supportive of cost reductions in all areas -- and we encourage Government to ensure that this remains in sharp focus in the future,” he added.

ABIC, the voice of International Business, represents more than 130 international companies incorporated in Bermuda.