DPM: Most financing offers “too good to be true”

DPM: Most financing offers “too good to be true”
Deputy Prime Minister and Minister of Finance K Peter Turnquest (BIS/Yontalay Bowe)

NASSAU, BAHAMAS — While the government receives “dozens” of offers annually for low cost financing, Deputy Prime Minister and Minister of Finance K Peter Turnquest suggested that such offers were often “too good to be true”.

Turnquest noted that government had received and is looking at an offer from Public Resources International.

“The government receives these offers for financing and debt write-offs all the time,” he said.

“I would only add that the the adage that when it appears too good to be true it really is. We are a sovereign country, not a fly by night entity, not just some small entity that can allow itself to be held at the mercy of any of these kinds of institutions.”

He continued: “We have a very sophisticated debt management unit staffed with competent professionals who evaluate each and every one of these offers to ensure they are credible, there is integrity behind the offer and they have the financial standing to make the offer.

“The last thing we would want to do is to enter into an arrangement with a group that is not financially sound itself or is looking to others to provide support for the offer such that once they make that offer and something happens they have to call on our loan and that puts us in a situation.”

Speaking at a press conference yesterday, Acting Financial Secretary Marlon Johnson said the government “gets any number of offers from people who want to offer the government money”.

“We literally get dozens per year but as a sovereign country with all of the obligations it is incumbent upon the government to engage with institutional investors and multilateral funds where there is absolute confidence that all of the due diligence and information on source of funding and all other matters are taken into account.”

1 comments

There’s a very innovative idea called a Balanced Budget. People and businesses all over the world do it. Do not spend more than you have in incoming revenue and set up an contingency fund. There should be legislation mandating a BALANCED BUDGET instead of budgeting with an intentional deficit. We have fallen into the American model of government spending. Tax and spend. The only difference is that the US dollar is hard currency and the US Treasury can print as much of it as it wants. It has no use value. It has value only because the US government maintains its value and parties who exchange it agree on its value. The Bahamas does not have the luxury of doing this. At some point it will catch up with us.

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