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PM Davis ‘confident’ that Revenue Outturn will near $2.9 billion

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By ERIC ROSE

Bahamas Information Services

 

 

#NASSAU, The Bahamas, May 30, 2023 – Prime Minister and Minister of Finance the Hon. Philip Davis said in the House of Assembly, on May 31, 2023, that public revenue receipts were strong over the nine-month period of July 2022 to March 2023, due to legislative reform, effective policy decisions, strengthened economic conditions and more efficient collection efforts.

“Analysis of the trends of the first three quarters of this fiscal year, and the years prior, suggest that the government is potentially set to exceed the $2.85 billion target set forth in the February 2023 Mid-year Supplementary Budget,” he said, during his Communication on Budget 2023.

“I am confident the revenue outturn at the end of the Fiscal Year 22/23 will near $2.9 billion.

Public spending has remained on track, and is well within the budgeted amount,” Prime Minister Davis added.  “For this reason I am confident that expenditure at end of the Fiscal Year 2022/23 will almost reach the target of $3.1 billion set in the Supplementary Budget.”

He pointed out that the primary balance will, therefore, record a surplus of $68.4 million at the end of the fiscal year, a $54.8 million increase from the $13.6 million surplus projected in the supplementary budget.

“Likewise, the overall deficit is expected to improve to $520.6 million, down from the $575.4 million outlined in the supplementary budget,” he said.

Speaking of Government financing, Prime Minister Davis said that The Bahamas’ borrowing costs had begun to experience a downward trend in the previous quarter; but the cost of borrowing rose at the end of March 2023.

“At the end of the third quarter, the total average cost of borrowing for current outstanding debt had risen to an interest rate of 5.55 percent,” he pointed out.  “This is notably higher than the previous year’s rate of 4.93 percent at the end of March 2022.

“This increase in borrowing costs is primarily attributable to the higher costs associated with external loan facilities.”

He added that, more specifically, the average interest rate for external financing had risen by 1.99 basis points, resulting in a rate of 5.55 percent as of March 2023, compared to the preceding year’s 3.56 percent.

“Throughout the past year, the interest rate policies of the major Central Banks have been restrictive, with a series of interest rate increases,” Prime Minister Davis said.  “These adjustments have been primarily motivated by the escalation of inflation, and the resulting upsurge in interest rates has had an impact on the Bahamas’ external borrowing costs.”

He added: “However, the cost of borrowing in the domestic market has been declining over the past quarters.

Looking at it in more detail, we can see that:

  • The average interest cost for domestic loans subsided by 27 basis points to 4.62 percent at end of March 2023, from 4.89 percent in the previous year;
  • And the average interest cost for domestic bonds subsided by 3 basis points to 4.63 percent at the end of March 2023 from 4.66 percent in the previous year.”

Prime Minister Davis noted that those statistics affirmed the Government’s latest medium-term debt strategy, which aimed to shift its borrowing away from costly external commercial debt.

“Such debt has seen a sharp increase over the past five years, including recent interest rate hikes,” he said.  “This strategic move will enable the government to once again rely predominantly on the domestic market to meet its financing requirements.”

Prime Minister Davis pointed out that, when considering the maturity of debt, or the average time it takes to repay the principal amount in the government’s debt portfolio, a longer maturity period led to a reduction in refinancing risk.

“In essence, prioritizing longer maturities is key to managing debt effectively,” he said.  “And so another element of the government’s medium-term debt management strategy is the goal of prolonging the average maturity time of its debt.”

Prime Minister Davis said that, in the face of “unprecedented turbulence” in the global financial markets, the Government was able to maintain its average time to maturity.

“At end of March 2023, the average time to maturity has decreased slightly to 6.7 years, down from the previous 6.8 years in March 2022,” he said.  “This variance is due solely to the external loan component, as the average time to maturity on internal debt has remained steady at 7.1 years.”

“This highlights the significance of maintaining a prudent approach to debt management, and aligning this administration’s practices with the government’s optimal debt strategy,” Prime Minister Davis added.

“It is imperative that we continue to exercise prudence in this area to ensure financial stability.”

(BIS Photos/Ulric Woodside)

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Bahamas Officials in Botswana

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Rashaed Esson

Staff Writer

 

#Bahamas#Botswana, March 18th, 2024 – Prime Minister of The Bahamas Philip Davis is now in Botswana from March 18 to the 22, invited by Botswana’s president  Mokgweetsi Masisi, and both nations, according to The Bahamas Office of the Prime Minister, are expected to sign agreements for trade, education, tourism, investment, banking and climate change in efforts to strengthen diplomatic ties. The Bahamian officials accompanying Davis are the Minister of Foreign Affairs; Minister of Education and Technical and Vocational Training; Minister of Economic Affairs; Minister of Youth, Sports and Culture and Parliamentary Secretary of Tourism, Investment and Aviation.

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RBDF Operation Strengthens Maritime Security Amidst Regional Turmoil

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Defence Headquarters, 17 MAR. ’24: A joint operation between the Royal Bahamas Defence Force (RBDF) and the Royal Bahamas Police Force (RBPF) led to the apprehension of 50 Haitian migrants approximately 5 nautical miles west of Bell Island on Saturday, March 16th.

The operation was initiated following the initial sighting of a sailing vessel, believed to be of Haitian origin, 8 miles southwest of Staniel Cay in the Exumas. RBDF swiftly deployed air and surface assets stationed at Matthew Town Inagua, supported by Police officials in Staniel Cay who verified the sighting. The migrants were intercepted by RBDF personnel stationed at the Land and Sea Park, Wardrick Wells Exuma, and subsequently handed over to the safe boat crew. They are currently under apprehension pending further investigation, with the imminent arrival of HMBS Rolly Gray.

In response to the ongoing instability in Haiti, Commodore Raymond King has announced the implementation of a strategic blockade in the southern Bahamas. This initiative includes the deployment of six surface vessels, one aircraft, and 120 highly skilled RBDF personnel. Patrol operations will be concentrated in critical areas such as the northern coast of Haiti, the Old Bahama Channel, and the Windward Passage, with the aim of deterring unauthorized entry attempts and preserving maritime security in the region.

The effectiveness of these decisive measures is evident, with recent apprehensions totaling 247 individuals by the RBDF. Commodore Raymond E. King emphasizes the commitment to bolstering maritime security through collaborative efforts with regional partners and local law enforcement agencies.

The Royal Bahamas Defence Force remains committed to safeguarding the nation’s borders and territorial integrity, working collaboratively with regional partners.

(For further information please contact the RBDF Public Relations Department or visit our website: www.rbdf.gov.bs, follow us on Facebook, Twitter and view our Youtube channel)

-rbdf-

#GuardOurHeritage

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CIBC CARIBBEAN and Bahamas Girl Guides Association host inaugural Delaney Leadership Seminar

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Nassau, Bahamas, February 28, 2024 – Enthusiastic girl guides, ranger guides, and girls representing schools across The Bahamas recently gathered at the first ever Delaney Leadership Seminar.

The seminar, named in honor of CIBC FirstCaribbean’s (now CIBC Caribbean) first female chief executive officer, Ms. Colette Delaney, empowered the next generation of female leaders through focused sessions on leadership development, cultivating a leadership mindset, and the importance of building strong, supportive friendships. 

The event featured a series of team building exercises, interactive discussions, and a keynote address by Dr. Jacqui Bend, CIBC Caribbean’s Managing Director. Dr. Bend shared insights on the essence of leadership, guiding principles, and emphasized the role of young women in shaping a vibrant future for The Bahamas and beyond.

“It was a privilege to witness the incredible energy and budding potential of the young leaders that participated. Leadership is not just about guiding others; it’s about inspiring action and fostering an environment where everyone can thrive. The Delaney Leadership Seminar is a testament to CIBC Caribbean’s commitment to nurturing young, bright minds and equipping them with the skills and confidence needed to lead with purpose and passion,” said Dr. Bend.

Held under the theme, Our World, Our Bahamas, Our Thriving Future, the seminar underscored the importance of lifelong learning, perseverance, empathy, and collaboration in leadership, among other guiding principles. Dr. Bend highlighted the strides already being made by the participants and encouraged them to continue exploring their potential and envisioning their roles in creating positive change within their communities and the wider world.

Delina Rolle, a tenth-grade participant and aspiring lawyer from Preston H. Albury High School in Eleuthera, shared, “This seminar has been a life-changing experience for me. Hearing Dr. Bend’s success story and her tips were inspiring for me as a young girl trying to be a leader. I am happy I was selected by my school’s administration to attend and connect with so many amazing girls who share my dreams of making a difference.”

The Delaney Leadership Seminar has set a new benchmark for youth leadership programs in The Bahamas. The event concluded with a commitment from both CIBC Caribbean and the Bahamas Girl Guides Association (BGGA) to continue their support for youth leadership initiatives. 

In 2022, CIBC FirstCaribbean donated to the BGGA to assist in completing the interior of its $1.5 million, West Bay Street headquarters, which will feature meeting rooms, office spaces, training areas, accommodations for girl guides visiting from other countries and other essential working areas.

It was at that time that Dr. Bend affirmed the bank’s commitment to support organizations that mirror the bank’s promise to assist women and girls in the communities it serves. Prior to that, the bank donated several native trees to BGGA, which were planted at its campsite, Camp Discovery, in partnership with the Ministry of Environment and Housing’s Forestry Unit.

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