Government measures in key jurisdictions 4th edition - Flipbook - Page 23
British VirginIslands
Contributor: Mourant
Rachael McDonald | rachael.mcdonald@mourant.com | +1 284 8521722
Eleanor Morgan | eleanor.morgan@mourant.com | +1 284 8521712
Tony Pursall | tony.pursall@mourant.com | +44 (0)20 7796 7603
Loans and
financial
support
•
All of the six major lending institutions in the BVI have extended loan moratoriums to their
customers experiencing hardship because of the ongoing Covid-19 pandemic. Banks are already
offering deferred payments, special loan financing and other concessions. Arrangements are
currently made on a case by casebasis.
Has the government
put in place any new
bank funding
schemes?
•
The BVI Government has implemented a phased economic stimulus response plan which
includes the allocation of USD 62.9 million to provide assistance to the local economy across
various areas including grants to businesses generally, and to support the hospitality industry
and BVI infrastructure.
Employment
•
What financial support is
the government
providing to businesses
and to individuals on
employment issues?
Insolvency
•
The legislation has not been changed as a result of the pandemic but the Charging Orders Act 2020,
which was published in the Government Gazette on 26 March 2020, confers jurisdiction on the High
Court to make orders imposing a charge for securing the payment of money due under judgments
or orders of the High Court. As at 31 August 2020, the Act is not yet in force.
•
We are not aware of any intervention into the workings of contracts governed by BVI law and the normal
rules apply.
•
The majority of commercial contracts under BVI law will have force majeure clauses providing for situations
when a party may terminate the contract and/or be excused for failure or delay in complying with the
terms of the contract due to a specified event. The contract will usually list force majeure events. The
question of whether Covid-19 as a pandemic is a force majeure event will depend on the drafting of the
clause in each case.
Has the government
made any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Property
The Government has set up an unemployment fund through the Social Security Board
called the Covid-19 Unemployment Relief Fund in the sum of USD 10 million. Local
businesses experiencing challenges can qualify for a grant in order to keep their staff
employed.
•
No laws have been amended. However, the BVI Government has appealed to
landlords to be flexible with tenants.
Have any changes
been made to
the laws around
property, rent and
enforcement?
23
Government measures in key jurisdictions