Economic Affairs Minister addresses govt inability to borrow from Central Bank

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NASSAU, BAHAMAS  – Economic Affairs Minister Michael Halkitis noted that government is not concerned about being maxed out on its legal ability to borrow from the Central Bank as of October 2024.

The revelation was made in a report by the International Monetary Fund (IMF), accentuating government’s increased reliance on this funding source with private capital deployed elsewhere.

The Davis administration relied heavily on the Central Bank during the 2024-2025 fiscal year’s first quarter because the private investors that typically fund the bulk of its deficit were instead directing capital to alternative investments with higher returns.

Halkitis noted that “as we reach that, we pay and we roll over so that’s a revolving thing.”

He added that some two (2) years ago, “government reduced the amount of funds we can get from the Central Bank.“

Halkitis told reporters that the reduction went from around 30% to 15% – attributing government’s ability to rely less on the banking institution due to “strength in the country’s economy.”

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