The Government of Antigua and Barbuda has offered a $75 million cash injection and major asset transfers, including the Jolly Beach property, as part of a formal proposal to settle more than $400 million owed to the Antigua and Barbuda Social Security Board (ABSSB).
The plan, outlined in a letter from Financial Secretary Rasona Davis-Crump to ABSSB Chairman Kem Tonge dated August 21, 2025, seeks to restructure and consolidate the government’s longstanding arrears into a single 25-year bond valued at $437.8 million.
Under the proposal, the government will:
- Provide up to $75 million in cash within the first 12 months of the agreement.
- Transfer income-generating assets, beginning with Jolly Beach, to strengthen the Board’s investment base.
- Convert all previous obligations, including the 2010 bond, 2022 bond, and unpaid contributions, into the new long-term instrument.
For the first five years, the bond would carry interest-only payments at 3%, increasing to 5% in years six to ten, before full principal and interest repayments begin in year eleven. The Financial Secretary also requested that the Board waive all accumulated interest arrears to facilitate the restructuring.
The letter describes the proposal as a comprehensive plan to put the Social Security scheme “on a sustainable financial footing” without raising contribution rates or the retirement age.
On the Browne and Browne Show earlier this month, Prime Minister Gaston Browne said the plan represents the fulfillment of a previous arrangement originally designed by the UPP administration but never executed.
“The swap that we intended to do with Jolly Beach is for that very bond that the UPP created in 2010,” Browne said. “It’s just that they never honored it. So what we’re doing now — we’re honoring the UPP’s agreement to do an asset swap.”
Browne said that once Jolly Beach is transferred to the Social Security Board, the government’s debt to the institution will “be practically wiped out,” reducing the outstanding liability to about $300 million. He also confirmed that government contributions now average $3 million per month, with pensions being paid on time.
The Prime Minister defended the proposal as a responsible way to honor long-overdue obligations while preserving Social Security’s solvency. “This government is ensuring that Social Security has a performing asset that can generate income and maintain stability for pensioners,” he said on air.
The Financial Secretary’s report and the Prime Minister’s remarks together outline a coordinated approach to debt management — one that blends liquidity relief, asset transfer, and predictable bond servicing.
The agreement could reduce the government’s arrears, improve the ABSSB’s liquidity, and stabilize long-term pension payments. The bond’s phased payment schedule also provides fiscal breathing room for the state while ensuring regular income to the Board.
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