MOF: Govt. borrowed $936.5 mil. to finance debt

MOF: Govt. borrowed $936.5 mil. to finance debt
Combined nine month fiscal snapshot and report.

NASSAU, BAHAMAS — The Government borrowed a total of $936.5 million in the nine months to March 2020, to finance the deficit, according to information released by the Ministry of Finance.

The Ministry of Finance in its combined nine month fiscal snapshot and report on budgetary performance for fiscal year 2019/2020 (July-March) noted that of this  total, $792.5 million or (84.6 percent ) was sourced in Bahamian dollars, and the remaining $144.0 million (15.4 percent) in foreign currency.

“Approximately $431.5 million or 46.1 percent of borrowings was via domestic bond issuances. Of the $278.0 million in bank loans, $228.0 million was in Bahamian dollars and $50.0 million in foreign currency facilities.  An additional $94.0 million was drawn down on existing facilities with international development agencies—$55.0 million of which was from the $100 million IDB contingent credit line to assist with hurricane recovery efforts; bringing total draw downs on this facility to $80 million as at end-March 2020,” the Ministry of Finance noted.

It also revealed that short-term funding comprised $60 million in Central Bank advances—all of which were repaid in March 2020, and $73.0 million in Treasury bills.

“Debt repayment, the report noted, totaled $585.4 million for the nine-month period—comprising $546.4 million in Bahamian dollars and $39.0 million in foreign currency.

“Given these developments, the direct charge—exclusive of exchange rate adjustments—grew by an estimated $351.1 million to $7,878.1 million, or 61.8 per cent of GDP at end-March 2020, as compared to end-June 2019.”