A meeting of Executive Council (ExCo) was held on 01July 2026.
The agenda for the meeting was as follows:
| CLOSED AGENDA 1. Declaration of Interest 2. St Helena Hotel Development Ltd’s Loan of £1 Million and SHG Guarantee (ExCo Memo 25/2026) 3. Appropriation Bill, 2026 St Helena Government Budget for the Financial Year 2026 – 2031 (ExCo Memo 26/2026) 4. Banking Strategy Update (ExCo Memo 27/2026) 5. Any Other Business NB Items marked (*) are commercially sensitive and depending on the subject matter, might not be referred to in the top lines. |
The following items were considered:
- There were no Declarations of Interest.
2. St Helena Hotel Development Ltd’s Loan of £1 Million and SHG Guarantee (ExCo Memo 25/2026)
Executive Council was asked to consider and advise, in relation to the St Helena Hotel Development Ltd’s (SHHDL) £1 million loan with the Bank of St Helena Ltd (BoSH), whether:
a) The St Helena Government (SHG) Guarantee on the loan should be extended, and if so, a Variation to the Guarantee should be taken forward as Government business at the next formal Legislative Council meeting; or
b) SHG repays the £1 million loan on behalf of SHHDL from the Consolidated Fund in full negating the need for a Government Guarantee; or
c) SHG repays part of the £1 million loan on behalf of SHHDL and seeks an extension to the existing Guarantee for the remaining amount and presents this Variation to the Guarantee as Government business at the next formal Legislative Council meeting.
Members and two Directors from the SHHDL Board discussed the options noting the following pertinent points:
- That the SHG Guarantee expires in October this year
- Outcome of the Taka Capital consultancy to attract interest for the sale of the hotel.
- Plans to explore alternative options by SHDDL Board for a business model going forward
- The potential impact on the General Reserve
- The uncertainty at this stage around factors linked to Conditionality within the Budget
- The development of an Exit Strategy for SHHDL
- The impact on the tourism industry if the hotel ceased to operate
Executive Council accepted and approved option a) as the more prudent course of action, in light of the current uncertainties surrounding Conditionality. In doing so, Council noted that options b) and c) remained available for future consideration, subject to the completion of the relevant workstreams and budget outcomes.
It was further noted that SHHDL would be discussed with Elected Members during the Ministers’ update session scheduled for 2 July.
3. Appropriation Bill, 2026 St Helena Government Budget for the Financial Year 2026 – 2031 (ExCo Memo 26/2026)
Executive Council was asked to advise whether the Appropriation Bill, 2026, should be printed, published and presented as Government business at the Legislative Council meeting to be held on 17 July 2026.
Members noted the background and development of the Bill under the following key headings:
- The Strategic Planning and Budgeting Process
- Budget Scenarios
- Financial Aid Settlement 2026/27-2028/29
- Draft Budget 2026/27-2028/29
- Financing the Budget
- Budget Pressures and Risks
- Consolidated Fund General Reserve
Executive Council accepted and recommended that the Appropriation Bill, 2026 be presented at Legislative Council on 17 July 2026. The Bill and accompanying Pink Book will be published in accordance with the stated timelines.
Ministers expressed their sincere appreciation to members of the Public Service for the support shown to the new Ministerial team during the preparation of the Budget process.
4. Banking Strategy Update (ExCo Memo 27/2026)
Executive Council was asked to consider and advise whether:
a) the proposed strategy to secure appropriate commercial banking services to support the Company Registry Transformation (“CRT”) under the Financial Services and Company Registry Development (“FSCRD”) Programme should be approved; and
b) the process currently being undertaken which is exploring the feasibility of SHG selling its shareholding in Bank of St Helena (“BoSH”) should be paused, while at the same time mandating improvements in BoSH service offering including international debit cards, more competitive money transfer fees and access to a wider range of financial services products.
Discussion focused on the key considerations including:
- That the success of the CRT is dependent on internationally active businesses having access to a range of modern corporate banking services
- The sale of shares in BoSH would not establish international corporate banking services in St Helena within the timeframe for bringing forward the CRT
- The pause will allow Government to separate the immediate banking requirements of the CRT from the wider question of BoSH ownership, while maintaining a clear focus on improving local banking services for the public and business community.
Executive Council noted that any future consideration of BoSH ownership must be carefully assessed against the island’s long-term economic interests, service needs and financial resilience.
Executive Council approved the proposed strategy to secure appropriate commercial banking services. The approach would be to seek to secure overseas banks that would be willing to accept St Helena companies as a class of clients. The overseas banks do not need to set up a local licensed presence on St Helena.
Executive Council further agreed to pause exploring the feasibility of SHG selling its shareholding in the BoSH. This decision gives BoSH clear direction to pursue their current programme of modernisation to improve and expand their local service provision.
5. Any Other Business
- The Attorney General provided legal advice to all Members regarding the implications of any engagement with two businesses.
#StHelena #ExCo #Toplines
www.facebook.com/StHelenaGovt/