NASSAU, BAHAMAS — The government yesterday revealed its borrowing plan for the 2023/2024 fiscal year, as it forecasts gross financing needs of $2.1 billion for the period.
“Based on the approved budget for the 2023/24 fiscal year, the government forecasts gross financing needs (GFN) of $2,198.7 million—consisting of $131.1 million to cover the budget deficit and $2,067.6 million to refinance maturing debt securities and loans,” a statement from the Debt Management Office of the Ministry of Finance noted.
“The government’s overall borrowing strategy seeks to extend the average maturity of the debt, so as to reduce liquidity and refinancing risk and to contain cost and risk in the debt portfolio. This is to be accomplished by refinancing maturing Bahamian dollar obligations with new issuances, leveraging semi-concessional loans and structured credits involving multilateral lenders and exploring liability management initiatives,” it continued
Given prevailing global and domestic financial conditions, the government is targeting to raise approximately $967.3 million (44.4 percent) of its gross financing needs (GFN) in Bahamian dollars, $235.5 million in foreign currency domestic debt via a rollover of the promissory note arrangement with the Central Bank of The Bahamas for the FY2022/23 SDR borrowings, and the balance of $995.9 million (45.3 percent) in foreign currency from external sources.
Approximately $210 million is anticipated in new loans from International Financial Institutions (IFIs) and an estimated $85.6 million in drawings on existing IFI facilities.
