Government net debt increased $100 million in February to cover upcoming loan repayments for Bahamas Power and Light (BPL), Financial Secretary Simon Wilson said yesterday.
The Ministry of Finance (MoF) released its February Monthly Fiscal Report yesterday, outlining the government's financial operations for the period.
It reveals that the government's net debt position increased by $100 million to prefund future debt amortizations and payments on behalf of a state-owned enterprise (SOE).
"Proceeds of borrowings during the period totaled $242.4 million via $100 million in Central Bank advances, $22.6 million in treasury bill placements, $14.5 million in Bahamas registered stock, and $105.3 million in foreign currency loans," the MoF report states.
"Repayments totaled $120.8 million owing to repayments of $100 million for Central Bank advances, $12 million for maturing Bahamas registered stock, $5 million for maturing treasury stock, $3.8 million for domestic loans, and $21.7 million for foreign currency loans."
Asked if he foresaw the government needing to take on more debt before the end of the fiscal period in order to support BPL's debt, Wilson said, "I don't know, but I'm hoping this is the last time for this fiscal period."
At the halfway point of the fiscal year, central government debt had grown to $11.03 billion, with public sector debt at $12.38 billion, at the end of December 2022.
Overall, government revenue improved 26.2 percent in February compared to the same period a year prior, driven by increased collections in international trade and transaction taxes of $26.3 million, the ministry said.
"During the month of February 2023, a surplus of $16.2 million was realized, a $49.3 million reversal from the $33.1 million deficit in prior year, owing to $249.2 million in revenue receipts; and $232.9 million in total expenditure," the MoF said.
"Central government's net debt decreased during the period by $8.5 million, a $124.3 million decrease from the prior year, as a result of $260.2 million in borrowings; and $268.8 million in repayments."
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