BASSETERRE, St. Kitts -THE Prime Minister and Minister of Finance, the Rt. Hon. Dr. Denzil Douglas, declared that his Administration has charted the way forward in dealing with its debts.
In delivering his Budget Presentation today (Apr. 9), Dr. Douglas disclosed that they have established a Debt Management Strategy that would be used as a guide in the management of the debt.
“In terms of the way forward with respect to the debt, we have developed a Medium-Term Debt Management Strategy that will be used as a guide in the management of the debt stock.”
He then explained how the strategy would work.
“The strategy will assist us in formulating the optimum structure of the debt portfolio that would minimise cost and risks as well as ensure that public borrowing is within the parameters of our debt servicing capacity. The strategy is an integral part of the Budget process and has been laid before this Honourable House along with the 2013 Estimates.”
PM Douglas also spoke to the issue of the debt restructuring, hailing the process as miraculous.
“Our ability to move the debt of the Central Government down to 87.2 percent of GDP in such a short time is nothing short of miraculous. We have successfully removed huge burden from the shoulders of our young people and of the future generation.
“We have positioned the economy to grasp the opportunity for enhanced growth and economic development. This outstanding achievement has impressed the international community and is worth celebrating throughout the length and breadth of this country.”
He also explained how the debt has benefitted the Nevis Island Administration.
“Mr. Speaker, the debt restructuring programme is a comprehensive exercise and is not only for the benefit of the Central Government, but also for the Nevis Island Administration (NIA) and the Public Corporations in the Federation. Consequently, the NIA’s debt at the end of 2012 declined by $22.4 million (6.0 percent) in comparison to its position at the end of 2011, while the debt of the Public Corporations decreased by $31.4 million (5.7 percent).”
The Finance Minister also revealed that the total public sector debt would further decline when the ‘debt-for-land swap’ is completed later this year.
