NASSAU, BAHAMAS — Acting Prime Minister Chester Cooper said yesterday that the National Investment Funds Bill 2022 has the capacity to over time ease the pressure on the country’s sovereign debt and improve this nation’s sovereign credit rating, touting the legislation as “necessary and revolutionary.”
Cooper, the Tourism, Aviation, and Investments Minister noted that the legislation provides the enabling framework for enhancing and leveraging this nation’s assets for the benefit of the Bahamian people.
“It is transformational in that it will lay a foundation for public sector investing and re-investing,” said Cooper, noting that the bill seeks to repeal and replace the Sovereign Wealth Funds Act 2016.
“It creates a framework that will give support for the blue economy, the green economy, and the orange economy, as we promised we would do in our Blueprint for change. The National Investment Funds Bill, 2022 seeks to repeal and replace the Sovereign Wealth Fund Act 2016, and to provide for the establishment and management of a national investment fund regime. The bill also sets forth the principles of the management and activities of a fund and any sub-funds established for the purpose of domestic, cultural, and societal advancements in the blue, green, and orange economies of The Bahamas,” Cooper explained.
Cooper noted that the legislation will ensure that investments and private share holdings of the government are managed professionally for the long-term benefit of the citizens of The Bahamas.
“It ensures that revenues from the natural resources and investments of The Bahamas contribute to the economic certainty of the country and its people. This bill provides for the fair transferring of natural resource wealth across generations to ensure that those who come after us will also benefit. It facilitates the using of natural resource wealth to finance national development priorities including any initiative aimed at developing relatively untapped economies and infrastructure of the country,” said Cooper.
Cooper noted that the country has many different avenues form which to gain revenue and In essence and the bill brings those sources under one umbrella.
He further explained, “The government’s ownership stake in companies like BTC, Aliv, and other companies can be established in a fund and the money derived from it can be professionally managed under the funds created in this bill for specific purposes. We’ll soon be launching our blue carbon credits program. This bill allows a fund to be established to use that money for the benefit of Bahamians now and into the future. We can set up an infrastructure fund, an education fund, a utility development fund, a disaster recovery fund, etc to drive national development.”
Cooper noted that while not all of the 22 populated islands may not be major population centers, they should all have equal amenities to be attractive to Bahamians.
“This legislation facilitates that through its development provisions. It will help us build the infrastructure that is desperately needed. We’re also working on making sure technology is nationwide through the Universal Service Fund. Though we have designed fiscal mechanisms to bring down our deficit spending and our debt, we have a real opportunity through the carbon credits program to shave that debt significantly.”
According to Cooper, the country spends over $500 million dollars a year just to service our debt.
“This bill has a capacity over time to ease the pressure on sovereign debt and improve our sovereign credit rating. There is a great opportunity through these funds to attract new investments in our country. A new infrastructure fund, for example, can roll in the existing bridges and leverage them to attract investments for bridges and hospitals and docks and airports,” said Cooper.
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