Financial Secretary Confirms Government Must Borrow Millions More for Arbitration Award

Joseph Waight

But the concern over the cash crunch is real for Financial Secretary Joseph Waight, who confirmed that Government must borrow further to complete the second payment for the B.T.L. Arbitration Award – one hundred and fifty million dollars more.

Joseph Waight, Financial Secretary

“The unfortunate thing is that we have to borrow the money to pay it, and that increases your debt and that increases your debt service. If you have to borrow a hundred and fifty million dollars, say, for the next payment, and you borrow money at three percent, you’re looking at four and a half million dollars more in debt service, and of course you have to repay it, so it adds up very quickly.”

Reporter

“Are you saying at this time that the Government will have to borrow to make the next payment?”

Joseph Waight

“Yes.”

Reporter

“What is that value exactly?”

Joseph Waight

“I said about a hundred and fifty million dollars more.”

Waight did not give specifics, but indicated that this latest borrowing will likely come “from the banks and the public.” He also indicated that Government was committed to this course and would find ways of repaying the money over time. Since the start of their third term in office, Government has raised the ceiling on treasury bonds and notes several times, in an effort to raise cash to meet various debts.