As the government struggles to meet its debt obligations, the Gaston Browne administration has turned to an unnamed “foreign entity” for a $14 million loan, it was revealed on Monday.
Speaking on Observer Radio, Chief of Staff Lionel ‘Max’ Hurst would only say, “It’s a private operation and they’re prepared to loan us some money in advance of payments which we would normally make.”
“It hasn’t gone through as yet, it’s not complete although we signed all the papers that are required. The Prime Minister signed them on Friday. We anticipate that it will happen one day this week.
“We are talking about $6 million to be delivered between now and the middle of September, and then an additional $8 million to be delivered before the end of December.”
According to Hurst, the Government is “finding some creative ways” to meet “the obligations to our friends from China.”
The China Exim Bank is funding the development at the cargo port.
“We’re borrowing some money, we’re borrowing some money. That is as far as I can go, but that money should come to us in a matter of a week or two and then we’ll pay off the first tranche,” Hurst said.
“We were to pay them at the end of March and then again at the end of September [and] we have asked them to consolidate so that we can pay them at the end of September.
“It would mean that thus far, that debt to China that should have been paid in March has not yet been paid. We’re putting in place some arrangements that will ensure they are paid.”
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Total nonsense, and height of ridiculousness!
How can the Ruling Arm, of the Government be so bold, as in not revealing the entity where the funds/loan is coming from?
Our Government is finally admitting, that the LOAN SHARK mafia business is well and alive in Antigua, Barbuda & Redonda.
…U a barraw money, innah fu me name, and me cyant know a who r wey, it a kum fram. A dat mek “hits and contract” killings/killers a kick een r we back doh, and no kay to rass!
@Ras Smood: If you would like to know the lender of such loans.Ask Tenman and or Sidelines.They are deep down into the bowels of the Administration.Any deeper down,they would be smelling dung.
How can they borrow money without stating where the funds are coming from? What is being offered in exchange for those loans? The Chinese will soon own the cargo port in Antigua.
Why there must be a secret? What is there to hide? Is it the new investor that replace Stanford thats why there is secrecy ?
If one is getting a loan from an individual whats the problem to list the individuals that giving a loan?
Borrowing from Peter to pay Paul, that is our debts will fall. Good rhyme but more of ABLP nonsense. And cant say from who? At least tell Sideline and Tenman since the rest of us are too ‘stupid’ to see the sense in all of this.
Boldface coruption!! The fact that you cannot say who the lender is speaks volumes to the integrety of this process. Even supporters of the Government should be concerned.
I can say without fear.When you borrowed monies from the Chinese to do projects.If for any reasons such loans cannot be repaid.The Chinese would foreclosed on such projects and take them over as their own.They have loaned monies to many countries in Africa,the Caribbean and a few in Europe.We went to Cape Town,South Africa last year.I could not believed the amount of Chinese in that City.A person living in Cape Town told me.The Chinese are taking over the City. In regards to the loans for the Port.I thought they had 5 years before they would begin to repay such Loans.
GASTON BROWNE IN HIS CAPACITY AS PRIME MINISTER AND MINISTER OF FINANCE.HE DID SAY HE WAS GOING TO BORROW THE NATION OUT OF DEBT.YES FOLKS,HE DID SAY SO,NOT A JOKE.
@ Bugsy
There are millions of Chinese in Africa and their numbers are increasing in Antigua. One should ask if they are there to develop Africa for the Africans or pursuing their goal of stripping Africa of the resources that China needs to continue its development. The Africans are blessed with the richest continent in the world in terms of natural resources. Why shouldn’t the Chinese look out for their own interest especially when they are dealing with a bunch of black politicians who are more concerned with stealing and getting rich than using the continent’s resources to develop their people? Black people have not long achieved their freedom from colonial rule and it seems that our leaders are leading us back into servitude.
@Black people need to get wise…
Your statement is so true, and lends itself to the following…
A…Ignorance is still bliss.
B…The Art of War, is shadowed by, The Art of Deception.
C…Chinese is a Religion, a Culture, a lifestyle HELL bent on dominance!
Really! So the financial wizard with an economic policy that emboldens you to borrow monies on the behalf of tax payers and not disclose the source of the funds. What kind of finance minister are you? You’re going to get a loan to pay another loan! Ludicrous! I will bet my last dollar no one in that so called cabinet in this banana republic government called the ABLP run there home finances in such a manner. If they so happen to do such skulduggery. They’re a bunch of inept fools. Wrong track. Wrong direction. Vote them out!
Firstly, the Chinese flood world markets with their cheaply priced products and make a killing in profits. Secondly, they then provide loans to poor and developing countries in Africa, the Caribbean and the Americas. These loans are to fund infrastructure and capital projects such as highways, roads, ports, airports, stadiums, hospitals, schools, housing projects etc. They do this with the expectation that those countries will never be able to fully repay the loans. And when the loans can’t be repaid they basically own those assets or are given other strategic state assets as payment. Thirdly, they then send their citizens to those very same countries to compete with the local businesses. Before you know it they have a monopoly on certain types of businesses and once again are making a killing in the profits derived. Sometimes the profits are enough to pay off the loans owed by the countries. Antigua will soon be controlled by the Chinese. It is all part of their master plan,. Google Chinese takeover of Africa, Central America, the Caribbean. We are all pawns in their game.
is it a pyramid scheme?
I would suggest that the PM should send China a bill for at least US$300,000,000 or more for what they have cost this country in lost revenue, deaths of loved ones, loss of jobs, psychological issues from the lock down and closing schools…and the list goes on… caused solely from the Wuhan Chinese virus that China knew was contagious and deadly and still let the five million fly out of China after their new year and spread it to the rest of the world.
If Nigeria can have the testicular fortitude to put a law suit on China for losses for two hundred billion dollars (some countries are suing in the trillions), there is no valid reason Antigua cannot do the same on behalf of the country and its’ people. Antigua does not need China and their crappy below standard projects where they use slave labor and make huge amounts on billing for same and gouge us on all the costs. In all rightness we should not be condoning this type of labor right here in this country. China unlike Taiwan is NOT a democracy. It is NOT a country of freedom and democratic elections and opposers to the Chinese communist party along with Christians and others who practice religion are put in internment camps and used for slavery and/or body parts.
NONE of China’s so called grants are free! There is always a payback of some sort as in land and/or yet another influx of Chinese to take over from locals. Do the right thing Mr. PM and sue China for all our losses and resultant suffering that they have caused. If you want to see the end of Tourism and Antigua as we know it just carry on as per the usual and let the Chinese infiltrate and control this island from their humongous so called embassy with its’ bunkers and 20′ wall to hide whatever it is they do not want us to see or know about.
These black leaders are so corrupt and naive they don’t recognize Trojan horses.
Comrade, you must name that country. The People will not be pleased. This is the business of the nation, not a small elite. NAME THAT COUNTRY and explain completely the “terms” of repayment. The ABLP is A TRANSPARENT PARTY, totally dependent upon the common people, the labouring masses, and everybody want to know.
The government cannot borrowing money which taxpayers will be obligated to pay back and this is all done in secret. This is incredible. I am surprised that FROM THE SIDELINE has not commented on this matter in defence of the government. FROM THE SIDELINE where are you under your bed hiding? I need to hear from you.
Poor you. I really didn’t want to join this discussion as I note too many dunce comments on here. Governments have been borrowing and are borrowing all over the world. Be it for budgetary support or for capital investment development. Like for infrastructure. When government present the budget they indicate how much money they will be borrowing. And they have to go to parliament to give the Minister of Finance the authorization to borrow. Now lets look back, during the UPP lots of the borrowing that took place didn’t even go to parliament and technically speaking the minister was in breach of the constitution. But let that be. We also find out that some to the debts were not even recorded in the books. And that is something we even held the IMF accountable for. Cause if it is one institution that needs to be informed of all your debt, bot domestic and external is the IMF. So her cam St. Kitts Bank Claiming Antigua government owing them millions. And even a lender will have to satisfy themselves that the proper instruments re being carried out for the transaction to be legal. In financial wisdom sometimes it is better to replace old expensive debt with new cheap debt. And some will call it borrow from Peter to pay Paul. But it is not as simple as that. Other times you want to prevent to have a loan going into arrears and kick-off a penalty clause, so you borrow money for that purpose. That way you stay current and at the same time you acquire another debt. it does not increase your debt stock as one debt goes down and the other goes up. The UPP was many times in this debacle when the airport was being build. They solved this by getting loans from the other arm of the Chinese government. So borrowing is something governments all over the world do. And I don’t see they coming to the public each time to tell them who they are borrowing from. But you see sometimes transparency is exploited by detractors. Had Mr. Hurst said nothing we would not be in the know that government is in negotiations to borrow some money. And he did say, they are in negotiation. So when those negotiations are complete then is when we will know and get all the information. Given the country’s economic situation it is expected that they will borrow lots of money in order to meet certain governments’ expenses. So far this government has been steering the ship very well. Antiguans and Barbudans are still enjoying life as if Covid is not even there. Even in the great USA millions of people don’t know where their next plate of food will come from. Food Banks are just overpowered. This picture you normally see in poor underdeveloped countries. we should count our blessings and thank God for the leadership we have today. Cause I have said it before, how would you live if tomorrow your income is cut by 60%. And you do not have savings. And the thing is there is no end in sight. No one knows what comes next. There is no manual to follow.
@From the Sideline.
You sound like Donald Trump. Blame the UPP. Blame the Democrats. The ABLP now owns the government. Move on. Thought the repayment for the loan for the deep water harbour was deferred for five years. Is the government repaying the loan when the project is not complete? I say we should get rid of the Chinese and get Antiguans involved so that all our money do not go to China.
You know it is hard to educate you guys on simple things such as government borrowing. I never blamed the UPP for anything. I just gave you guys the truth as what happened during their time in office when it came to borrowing and what is happening now. I guess when you do not like what you hear you try to shoot the person trying to educate you. If something I said is not correct in your opinion, please state what it is. Cause as far as I know I said nothing that is not true. When the ABLP come to power to brought all these warrants that the UPP fail to bring to parliament up. They didn’t go after Lovell whose duty it was as finance minister. Now you guys are saying Max said they borrow money to pay the Chinese for the Port. When Max never said it was for the Port. And when you get a moratorium it is usually on the principal payment and not on the interest payment. The banks are doing the same thing now with people that due to Covid cannot pay their loans. They get a moratorium on the principal but they have to pay the interest.
So DC I hope you learn something here about government lending. But no minister can borrow money without going to parliament and get approval to do so. That instrument must be there. That is were you and I will learn about it. Transparency in democracy. Remember when the PM wanted to borrow money from Venezuela to put into LIAT. He had to go to parliament.
@From The Sidelines…I am finally convinced. You are programmed “BOT…”
It’s time for certain long time politicians to be removed from office. They have only served to line their own personal pockets. “Creative Enrichment” as Gaston calls it.
It’s way past time we have people in positions who will better our nation as a whole. This business as usual has only had our nation in a downward spiral for decades. The COVID times have has proven this yet again.
@sideline. You and your government must become better aquatinted with terms such as moratorium, forbearance and reorganization of debts. It’s a recipe failure and bankruptcy to continue to borrow to pay of current debts when you can’t service them. Basic economics. Revenue is not coming in to service your debts to reorganize. Ask your creditor or creditors for more time to pay. The government is already insolvent. Why exacerbate the problem? Just an observation!
Do you know what our Debt to GDP was before Covid? 70%. That is not a bankrupt stage. Under the UPP is was 106% that was bankrupt stage. This government has been very prudent in ts borrowing. But like always, you guys just make lose and unsupported accusations. The PM did say that with the lost in revenue and the lost in economic activity this will change. As we would lose at least 10% of GDP this year alone. And we have to borrow in order to keep the economy going and pay some of our debt that cannot and will not wait. i don’t understand why you guys cannot understand these are unusual times the entire world is in crisis. Yet you expect wonders here in Antigua. Sorry, so far we are spared the worst. Lets continue praying for Gods’ blessings and protection. But then again you guys are wishing doom and gloom for this administration. No care for the people that it would hurt. Even if its your own mother or father.
Why doesn’t the government ask the Chinese to defer any payments to them and interest payments until we get this Covid under control. They are the ones who cause the world to be in the state it is in. What is wrong with our government? Borrowing money to pay these people! I don’t believe it.
The govt will never be able to pay off the Chinese. What will end up happening is the govt will give the Chinese land instead and they will take over Antigua like they have done to Jamaica and elsewhere. As simple as that. And the MP’s will ride off into the sunset after screwing us over.
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