The Ministry of Finance acknowledges the position of S&P Global Rating, which decided to lower The Bahamas’ credit ratingfrom 'BB' to 'BB-', based on the fallout from the COVID-19 pandemic.

The decline in tourism receipts as a result of the important and necessary reinstatementof curfews and lockdowns and the delayed reopening of the tourism sector caused larger than expected deviations from established fiscal targets. These were among the key factors influencing the rating agency’s decision.

“The Government remains committed to meaningful public finance reform. We have accelerated our legislative reforms to strengthen the country’s fiscal framework, and we are following through on structural reforms in the coming months to significantly strengthen accountability and transparency in fiscal and procurement matters.

We cannot forget that The Bahamian economy is experiencing unprecedented shocks from two catastrophic external events. Nevertheless, we remain confident in the economy’s ability to rebound and our commitment to restoring fiscal balance overtime,” said K. Peter Turnquest, Deputy Prime Minister and Minister of Finance.

“The Bahamas’ vulnerability to severe external shocks has been apparent throughout this crisis, but we are in the same boat as most countries around the world. It remains to be seen just how deep and prolonged the impact of this economic crisis will be. The government is taking proactive and prudent steps to meet its obligations and to plan for the recovery,” said Minister Turnquest.

The Government is currently reviewing the report submitted by the Economic Recovery Committee, including a broad range of proposed reforms and recommendations intended to seed new industries and economic opportunities and to expand existing ones; make The Bahamas more attractive for domestic and international investment; and to make certain bureaucratic systems function more efficient.

In keeping with the budget plan to promote greater efficiencies and cut costs, the Government will make good on its commitment to reform the country’s state-owned enterprises as foreshadowed during the budget debate.On the other hand, the Government is making strategic outlays to respond to this crisis in areas that can make the largest impact on the welfare of people: unemployment assistance, social support and small business assistance.