RE: IDB SUPPORTED $500 MILLION LOAN

Feb 26, 2024

29th January 2024

Honourable Philip Davis, M.P.
Prime Minister
Commonwealth of The Bahamas
Office of the Prime Minister
West Bay Street
Nassau, The Bahamas
Dear Sir,

Re: IDB Supported $500 million loan

I refer to captioned and to the related press release and subsequent comments of the
Ministry of Finance as reported in the Press.
We understand that this facility is a ten-year loan that is underwritten by one or more
private banks supported by a partial guarantee from the Inter-American
Development Bank (IDB) through a policy-based guarantee.
In your press release and in subsequent follow up queries by the press, you and your
Ministry failed to provide the full terms of the loan. We do not know the interest
rates and costs. We also do not know what policy measures the government was
required to fulfill or commit to as a condition of IDB support.
We remind you that you are committing the Bahamian people to pay the interest and
principal on a half a billion dollars worth of loans. The Bahamian people must know
the terms. Here again, your administration is failing the basic tenets of accountability
and transparency.
We also require full disclosure on the use of these proceeds. The Financial Secretary
has insisted in the press that none of these funds can be and will be used for debt

financing or debt rollover. Yet the press release from the Ministry of Finance pointed
to the facility being used to extend loan maturities and improve financing costs. The
release also mentioned that these proceeds represented over half of the external
financing requirements. A review of your administration’s Annual Borrowing Plan
shows that more than 85 percent of all external financing for the fiscal year is solely
to roll over existing debts. These statements and obligations suggest that these IDB
supported loan funds were intended to be used in roll-over existing debts.
Thus, given the apparent contradictory positions offered by the Ministry of Finance,
we do require that the Ministry provide clarification on the full use of the loan
proceeds- as well as how the Ministry intends to obtain funding to roll over the $800
million plus in external debt that comes due this fiscal year beginning this month.
We are grateful for your prompt response.
Regards,

Hon. Michael C. Pintard, M.P.
Leader of His Majesty’s Loyal Opposition

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