The good news is a result of the Finance Minister's drive to relax foreign currency controls, announced in the Budget.

Residents can now borrow foreign cash from any source. But they are not allowed to use it to buy a house.

Mr. John Hill, exchange control manager at the Bermuda Monetary Authority, said: "Foreign currency may be borrowed by residents for any purpose other than the purchase of houses or the refinancing of houses in Bermuda, and if the borrowing is in respect of assets abroad the repayments are limited to your $25,000 allowance.

"If a resident wants to borrow foreign currency to buy a car or a washing machine or any consumer product he can, as long as the bank is willing to lend him the money.'' Residents would be able to benefit from lower overseas interest rates, Mr.

Hill said. "We would expect the loans to be cheaper.'' Apart from the rules relating to residential property in the Island, there are other restrictions.

Borrowed foreign currency cannot be used for conversion into Bermuda dollars for the specific purpose of lending. It cannot be used for direct and portfolio investment unless servicing and repayment are financed in accordance with current restrictions. It also cannot be used for making gifts of more than $3,000 to non-residents.

Residents are allowed to deposit borrowed foreign currency in local banks.

Apart from this, if the borrowed foreign cash is to be used in the Island, it must be changed into Bermuda dollars.

Non-residents have also been given permission to open Bermuda dollar accounts in the Island.

Announcing the changes, BMA controller of foreign exchange Mr. Malcolm Williams added: "The amendment to the Foreign Currency Tax Act 1975 establishes a single rate of tax on all purchases of foreign currency, namely 0.25 percent -- except for certain exempted transactions which attract no tax.

"This now means that residents may take more advantage of the permission already given to purchase foreign currency equivalent to amounts of foreign currency beneficially owned by them and exchanged into Bermuda dollars on or after April 1, 1993.''