The U.S. Virgin Islands expects a windfall of roughly $132.5 million from the estate of Jeffrey Epstein, which may temporarily alleviate the government's financial distress.
That amount would equal about 13% of
The government has an issuer rating of Caa3 from Moody's Investors Service with a stable outlook.
The accused sex-trafficker, who died in prison in August 2019, owned two islands in the U.S. Virgin Islands. The USVI's settlement stems from a suit filed against the estate by Attorney General Denise George
The settlement specifies the estate will pay $105 million to the government and half the proceeds from the sale of one of Epstein's two islands, Little St. James, currently on the market for $55 million.
The deal specifies the money will be transferred to the U.S. Virgin Islands government within one year.
"The settlement … will return to the Virgin Islands more than $80 million in economic development tax benefits that Epstein and his co-defendants fraudulently obtained to fuel his criminal enterprise," George said Wednesday evening.
The settlement does not include an admission of guilt from the estate.
A Moody's review of the matching fund bonds in October 2021, notes "severely strained government finances" and "substantial liquidity strain" as contributing to its "weak credit profile."
"The financial impact of this settlement is significant and comes at a time in which the Virgin Islands Government can really maximize its impact for the most good," said Richard Motta, spokesman for Gov. Albert Bryan Jr.
While the legislature will determine how the funds are spent, Motta continued, the money will "benefit the territory and its residents meaningfully."
Proceeds from the sale of St. James will go to a trust to fund services to help USVI residents or visitors who are victims of sexual assault or human trafficking.
As of June 30, 2019, the U.S. Virgin Islands government had $1.91 billion in net tax supported debt, according to Moody's.
The U.S. Virgin Islands economy, which depends on tourism,
