Prime Minister Godwin Friday has described the national debt as a significant challenge that is more severe than he had anticipated before taking office.
He said the total amount of public debt currently stands at approximately $3.1 billion.
“The debt is owed to various entities, including bilateral partner countries, the Caribbean Development Bank (CDB), and through various financial instruments”.
Friday said a major concern is that 36 cents out of every dollar of government revenue is currently used to service this debt.
“The country has reached a point where it “can’t borrow much more” and must find alternative ways to meet its obligations”.
Beyond the official debt figures, Friday mentioned a substantial amount of unpaid payables owed to local businesses. He noted that not honoring these payments removes money from the local economy, though he declined to give a specific figure for these arrears at the time of the interview.
Friday cited the $3.1 billion debt as the primary reason his administration intends to move forward with a Citizenship by Investment (CBI) program by 2026, as the country requires new revenue streams to plan for the future.
Friday characterized the overall state of the government’s finances as “tight” and confirmed that the finance department’s transition document revealed a situation worse than his expectations.