The Cayman Islands, a British overseas territory, has secured permission from the UK to obtain a CI$50 million ($61 million) loan to make good a 35-40 per cent fall in government revenues, according to the Financial Times

But in a letter described by the Cayman government as an "ultimatum", the UK has said that approval for a further CI$229 million of borrowings would depend on expenditure cuts and an independent assessment of the scope for direct taxation.

William McKeeva Bush, leader of government business, said: “There will be no community enhancement fee now, no income tax now, no property tax now, no death tax now,” in a live television broadcast. But he said also that this could change.

The UK Foreign Office is concerned lest the Cayman Islands trade on the UK's reputation to borrow too much, making UK approval for the loan a tacit guarantee as any default would probably end up on the UK’s plate.

The official CI web site is silent on the matter; the lead story at the time of writing was about the recapture of a crocodile.