It was revealed late last week that the six banks which will be financing the new Bahamas government's US$125 million borrowing are: the Royal Bank ($27 million), CIBC Bahamas Limited ($27 million), Scotiabank (Bahamas) Limited ($27 million), Barclays Bank PLC ($27 million), Citibank N.A. ($10 million), and Bank of the Bahamas ($7 million).
When the Progressive Liberal Party came into power earlier this month, Minister of State for Finance, James Smith warned that as a result of events such as the September 11 attacks and Hurricane Michelle, the PLP government of the Bahamas has inherited a fiscal deficit of more than $140 million, and that substantial borrowing will be necessary in order to sustain existing spending programmes.
In one of his first acts as Minister of Finance last week, Prime Minister, Perry Christie sought the approval of Parliament to borrow $125 million from the aforementioned banks to pay the government's debts. In order to meeting ongoing commitments the resolution must be passed in June, according to reports.
'Essentially this money has already been spent because there is a substantial amount of bills that are not paid,' the new Prime Minister admitted.
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