Prime Minister announces formation of Private Sector Debt Advisory Committee

(BIS Photo/Kemuel Stubbs)

By Kathryn Campbell

In an effort to restore the nation’s fiscal credibility and the confidence of international markets, Prime Minister and Minister of Finance the Hon. Philip Davis has announced the formation of a Private Sector Debt Advisory Committee to advise the Ministry of Finance on the nation’s debt strategy.

Prime Minister Davis made the announcement as he presented a 2021/2022 Supplementary Budget Statement in the House of Assembly, Wednesday, October 27, 2021.

The Committee, which will be chaired by the former Minister of State for Finance, James Smith, will have representatives from domestic as well as international financial institutions based in The Bahamas. An independent international debt advisory firm will be engaged to assist the work of the Committee.

“My Government appreciates the gravity of our debt situation and is determined to restore our fiscal credibility and the confidence of international markets,” said Mr. Davis.

“Since assuming office, both the Minister of Economic Affairs and the Financial Secretary have been holding meetings with ratings agencies, financial institutions, and lenders to carry the message that the risk of default is non-existent and this administration is ready to guide this nation back to fiscal stability.”

He advised that The Bahamas will be represented at the 2021 United Nations Climate Change Conference (COP26) taking place in Glasgow Scotland between October 31 and November 12 and will participate in discussions regarding financing opportunities for Small Island
Developing States.

“Countries such as ours bear almost no responsibility for climate change but are uniquely vulnerable to its impacts,” he said. “Climate adaptation and mitigation finance are mechanisms for allowing countries such as ours to transition to renewable energy and to build for resilience.

“In addition, carbon credits have the potential to bring in very significant revenue. There are some exciting developments underway and I look forward to reporting back to the Bahamian people after our meetings in Glasgow.”