Turnquest: No additional borrowing this fiscal year

Turnquest: No additional borrowing this fiscal year
Deputy Prime Minister and Minster of Finance K Peter Turnquest (FILE PHOTO)

NASSAU, BAHAMAS — The government does not anticipate any additional borrowing beyond the $1.3 billion this fiscal year, according to Deputy Prime Minister and Minister of Finance K Peter Turnquest. 

Turnquest noted that government should receive around $500m in bridge financing from multilateral institutions as part of its $1.3 billion deficit funding strategy this week, with a bond offering scheduled for the Fall. 

”We anticipate going out with a bond offering something in the Fall once the market conditions are favorable,” he said.

“We haven’t determined the size of that offering yet but we are working and finalizing those matters over the next couple of weeks in order to bring it into the market in the Fall.”

He noted that despite the fall-out from the COVID-19 pandemic, government is still on target with its fiscal projections having factored in fall off in tourism.

Turnquest said: “We had anticipated a slow period of economic activity. We did not initially anticipate the lockdowns but in our projections for the fiscal year we did anticipate limited activity so we are not too far off. I do not have the latest numbers but last time I check we are more or less we where we anticipated we would be at this point.

“We do not anticipate any additional borrowing beyond the $1.3 billion this year. In fact we are going to try our hardest to come in under that number, understanding that it is a significant liability for the Bahamian people going forward in the medium to long term. However, we do realize we have an obligation to meet our commitments and provide assistance to those who need it.”


My main question to Minister Turnquest. as a CPA his thoughts on the government running a deficit. The government went into its fiscal year with a plan of spending more than its incoming revenue. Just like business and the common man on the street it is impossible to sustain borrowing more than you have as income. You end up mortgaging the country. At somepoint the principal must be paid not just the interest on the debt.

At the current rate the Bahamas will be owned by its lenders, just as your house is owned by the bank if you have a mortgage. The foreclosure is coming if the current course is kept.


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