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PM Browne: High Debt Servicing Costs Limiting Social Development
Prime Minister Gaston Browne has revealed that high debt servicing costs are placing significant pressure on Antigua and Barbuda’s finances, limiting the government’s ability to invest in vital development projects.
Speaking on his weekly radio programme on Pointe FM, Browne noted that while the country’s debt-to-GDP ratio has improved dramatically—falling from 104% to approximately 62%—the structure and terms of the nation’s debt continue to pose a serious challenge.
“Our biggest problem now is not our debt-to-GDP,” the Prime Minister said. “Our issue is the debt service, because most of our loans and advances are short to medium-term, and the interest rates are relatively high.”
According to Browne, debt servicing currently consumes more than 20% of government revenue, leaving fewer resources for infrastructure and social development programmes.
“When your debt service is that high, it reduces the amount of money that you have for development, especially social development,” he explained.
To address the issue, the government is exploring plans to float a bond valued between US $350 million and $400 million.
The aim is to retire some of the high-interest obligations and replace them with longer-term financing.
“If we can extend the term to about 20 to 25 years and secure a principal moratorium for the first five years, it would significantly reduce cash outflows,” Browne said.
“That means we can build more roads, repair public buildings, and do more in terms of improving infrastructure.”
The Prime Minister’s remarks come at a time when the government is undertaking several major infrastructure projects, despite facing financial constraints.
He acknowledged that in some cases, road construction is underway “without any real fiscal space.”
The proposed bond would form part of a broader effort to create more sustainable public finances and to ensure that development goals are not sidelined by the burden of servicing short-term, high-interest debt.
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We need to get rid of this charlatan whose in charge of the public purse.
Father in heaven deliver us from this head of antigua mafia!
Do you think the average citizen knows what gdp is?
Or what the debt to ratio is??
Or for that matter inflation is?
They know you building a huge mansion to live in when people in antigua are still sponging off..
They know you take a nice warm shower every morning!
You and your family.😱
Yet we don’t have water much less warm water..
Pm sit down and give us a break please!
Thanks!
The propaganda is real..
Geez
Help me to understand Mr. PM
Didn’t You say in the past that all the loans UPP took was paid off and we are free from IMF. So where did all these loans come from and what is CIP monies used for?
Correct me if I am wrong but I can’t call my country of Antigua and Barbuda an economic power house with all these debts. I know you came from banking but refinancing is a tool used to trap the customers and keep generating revenue for the banks.
Mr. PM if you love God you need to stop the lies and deception while there’s time. Pharaoh was warned, consider this a warning.
Free the citizens of Antigua and Barbuda we weren’t put here to support you and your minions.
Hey can anyone confirm if WIOC/Antigua and Barbuda tax payers is paying for Liat 20 now Liat air fuel. If this is happening the citizens of Antigua and Barbuda should be flying Liat for free
was speaking as if we are stupid. A white man remarked that he wasn’t speaking to us but to the 3/4 of the population who are…
I wonder if most people who read the article understood it…Guess I’ll have to look up the prior loans and their purposes…
Let me share a little nugget here for this very crafty PM. Like I told his loyal ” foolish” follower in @less we forget.
Banks only gives short term loans with high interest, because they do not believe in the long term sustainability of your income generation and your ability to sustain the payments of those premium over a long period, simple.
Antigua does not have a good track record of paying back debts, because they have very little resources that generates revenue, and the banks knows that.
So, Gatson Browne, try and be honest with the people please, instead you’re out here bragging about Antigua being an economic powerhouse.
Well it’s not, and far from it, but you’re out here using word play to fool the people.
Stop the lying just to get re-elected. Just get the damn job done and stop the excuses, and that’s what’s so annoying about this ABLP administration. Just brag about things that’s far from the truth just to get votes. Be honest MR PM. Antigua is in deep shyt and need help fast.
The math has not been mathing for a long time now, because you squandered the Golden years of Antigua’s economy. So as @Sandra graciously said it ” give us a break”.
And again, jolly beach is not the answer..just another pie in the sky suggestion. This government has spent it’s moments, and it’s time for them to move on, at least this inadequate financial minister.