Gov’t seeks to raise loan limit
BARBADOS WILL NOW be able to borrow more money to build its productive capacity, by increasing the Special Loans limit from $1.5 billion to $2.5 billion.
The $1 billion increase is being done via a parliamentary amendment to the Special Loans Act, introduced by Minister of Finance Chris Sinckler in the House this morning.
Noting that the economy desperately needed restructuring and that Government must have at its disposal the resources to reform and transform the economy, he said it was absolutely critical for Government to build productive capacity over time. Therefore, such long term debt would ensure Government had the space to be able to intervene in the economy in strategic ways and make the economy more competitive.
Sinckler said when the amendment was being contemplated, loans like the government-to-government Chinese loan given for investment in the Almond property were considered; along with other tourism projects like the Pierhead marina and acquisition of the Sam Lord’s property, restructuring of the sugar industry, and the West Coast sewerage project.
He said, unlike short-term borrowing to finance day-to-day operations, on which the recent raising of the Treasury Bills limit was based, this was the type of debt one would want to incur for the country’s overall development. (RJ)