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News : Bahamas Information Services Updates Last Updated: Oct 14, 2020 - 3:57:46 AM

DPM Turnquest on Debt Financing Activities and Statement to Parliament
Oct 13, 2020 - 8:46:29 PM

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K. Peter Turnquest, Deputy Prime Minister and Minister of Finance

Following the announcement of a US$600 million issue of 8.950% bonds on the international market, the Ministry of Finance advises the public that it will provide an update on all of the Government’s borrowing activities consistent with its documented Resilient Bahamas Plan at the next sitting of Parliament.

The public can have confidence in the Government’s prudent management of the country’ debt portfolio, and its transformative plans to establish a new Debt Management Unit and legislative framework.

Bahamian governments have a long-standing track record of engaging top tier investors and multilateral institutions for which we are shareholding members. Successive government have been guided by the expertise of the Ministry of Finance, the Central Bank of The Bahamas and a number of other credible investment experts.

The Ministry of Finance receives 15 - 20 offers every year, especially around post-budget time, offering very low-interest rates to total debt forgiveness. These offers are considered when the investors have track records and sufficient background information on which to do due diligence. Transparency is required regarding the sources of funding and proposed financing structures.

Unfortunately, many offers are from middlemen with no money themselves. Despite advertised low-interest rates, often times their extraordinary upfront administrative and arrangement fees are not disclosed transparently and negate any rate savings they potentially bring.

While market forces ultimately dictate interest rates, the Government always seeks the most favourable financing arrangements and manages its debt portfolio in a responsible manner to minimize investment risks that might call into question the country’s fiscal integrity.

The public is encouraged to provide feedback on the recently published Draft Public Debt Management Bill, 2020 , which is currently available on the Ministry of Finance website for public comment.

Source: Central Communications Unit, The Ministry of Finance Contact : MOFcomms@bahamas.gov.bs

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