The Association of Bermuda International Companies (ABIC) has given its backing to Finance Minister Paula Cox's Budget plans.

In a statement yesterday, ABIC chairman David Ezekiel said the organisation supported the Budget, "both in its tone and content".

"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," Mr. Ezekiel said.

"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."

The ABIC statement said the business community had "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".

But 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 added that this was a time when the business communities and governments of each jurisdiction must work in concert to minimise the impact of the worldwide economic downturn.

ABIC represents more than 130 international companies incorporated in Bermuda.