NASSAU, BAHAMAS — The Bahamas’ public debt climbed to $13.15 billion at the close of the 2024/25 fiscal year, with the government’s annual debt service bill surging to more than $5 billion, according to the Ministry of Finance’s newly released Public Debt Statistical Bulletin. The debt stock rose by $17.4 million, or 0.1 percent, during the fourth quarter to end-June 2025, and expanded by $440.9 million, or 3.5 percent, compared to the prior year.
The increase was largely driven by central government borrowing, offsetting net repayments by public agencies and state-owned enterprises. Foreign currency obligations advanced by $230.7 million in the final quarter, though the year-on-year rise was a more moderate $157.7 million. These liabilities represented 44.7 percent of the overall debt, slightly lower than a year earlier. By contrast, Bahamian dollar debt contracted by $213.3 million over the quarter but still rose by $283.2 million over the fiscal year, increasing its share to 55.3 percent of the total.
Debt servicing costs mounted sharply, with the government making $5.1 billion in total payments during the year, up $649.7 million, or 14.7 percent, from the prior fiscal period. Principal repayments accounted for nearly 86 percent of the total at $4.35 billion, while interest costs reached $725.9 million. About 57.5 percent of the annual servicing burden was denominated in Bahamian dollars, with foreign currency obligations making up the remainder.
External debt contracted slightly during the final quarter, falling by $91.5 million to $5.3 billion due to repayments to financial institutions and multilateral lenders. However, compared to June 2024, external liabilities increased by $202.2 million to $5.55 billion, reflecting several major transactions, including a €200 million Deutsche Bank facility enhancement, a $300 million climate-related loan from Standard Chartered, a $1.07 billion Eurobond issue, and related debt repurchases totaling nearly $986 million. The government also secured smaller credit lines from the National Commercial Bank of Jamaica and the African Export-Import Bank.
Domestic debt rose by $227.7 million over the year to $6.48 billion, driven by $730.1 million in Treasury bill issuance, a $100 million syndicated loan, and new private sector facilities. This expansion was partly offset by repayments on bonds, T-notes, Central Bank advances, and other loan facilities. Commercial banks increased their holdings by $254.6 million, raising their share of domestic debt to 41.7 percent, while private sector exposure grew by $219 million to 42.3 percent. Liabilities to the Central Bank and public corporations declined.
At the close of the fiscal year, Bahamian dollars remained the dominant currency of the debt portfolio at 55.3 percent, followed by U.S. dollars at 39 percent and euros at 3.4 percent, with smaller exposures to SDRs, Swiss francs, and Chinese yuan. The Ministry of Finance also noted that a shift toward fixed-rate domestic debt has provided greater predictability in managing repayment obligations.
