Categorized | National News

Gov’t arrests credit downgrades

The Ministry of Finance  says the latest credit rating for The Bahamas by S&P Global Rating acknowledges the tremendous progress made the Government to halt the recent rise in the deficit and slow the pace of debt increase. In its most recent report, The Bahamas maintained its BB+/Stable/B Rating, demonstrating yet again that the administration has halted what had become a perpetual cycle of downgrade after downgrade. 

“Now that the fiscal and economic situation is stabilized, the task remains to maintain fiscal discipline and speed up the pace of economic growth that must be broad and inclusive. The S&P report echoed what we have been saying: We must stay the course, for if we waver now, we could undo the progress and diminish the medium to long-term viability of the country.,” said K. Peter Turnquest, Deputy Prime Minister and Minister of Finance. 

“This administration takes seriously its core responsibility to be fit and accountable stewards of the fiscal affairs and the long term economic well-being of the nation,” added Turnquest.

The S&P report acknowledged several of the Government’s initiatives, particularly the passage of fiscal responsibility legislation, which introduces deficit and debt target ratios. This is one of the key policy initiatives that will slow debt growth. S&P acknowledged the measures taken to improve economic growth prospects of The Bahamas through:

  • Boosting competitiveness and making it easier to do business, including: 
    • New legislation to facilitate issuance of business licenses
    • Legislation to support the establishment of a Credit Bureau
    • Focus on further developing digital government services
  • Stabilising the Financial Services sector by introducing legislation to address perceived deficiencies in the AML/CFT environment
  • Passage of Fiscal Responsibility Act to put Bahamas on path to debt sustainability
  • Spending cuts on discretionary items of 10% and enhanced revenue measures e.g. VAT increase to 12%

Written by Jones Bahamas

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