DPM confident in govt’s ability to raise funding in domestic market

Deputy Prime Minister and Minister of Finance Peter Turnquest said he sees no obstacles for the government in raising capital in the domestic market, if it becomes necessary.

The government successfully raised close to $800 million on international markets to meet its $1.3 billion fiscal obligations this year and has stated it would generate the rest of its financing from the local markets.

“The remaining borrowing in our borrowing envelope approved by Parliament is roughly $400 million. Our intention is to gather those funds in the domestic market if it becomes necessary to access additional financing,” Turnquest told Guardian Business yesterday.

“Based upon past performance, we have no concerns about achieving that if necessary. However, our focus continues to be on prudent fiscal management and a return to our fiscal consolidation plan as soon as possible, treating this year as an outlier. We have introduced new, modern public financial management, public procurement and debt management legislation to Parliament that, once passed, will redefine public fiscal management standards and transparency.”

Last week in the House of Assembly, the finance minister meticulously outlined the government’s borrowing strategy since July, at the start of the fiscal year.

When speaking to other planned financing in the future, Turnquest said that while the government has a preference to optimize opportunities for borrowing from domestic sources, it is mindful that the largest institutional investors – namely banks, pension funds and insurance companies – all have internal prudential exposure limits on how much government debt they are willing to hold.

Still, Turnquest maintained yesterday that the bulk of the government’s remaining financing will be sourced from the domestic market.

“As we have consistently said and outlined in the budget debate, we have a borrowing and debt management plan. That plan included short-term borrowing through the Central Bank and domestic financial institutions, medium and long-term borrowing from domestic financial institutions, pension plans, et cetera and long-term borrowing through a foreign currency bond offering to support external reserves. We have held to that strategy,” he said.

“As confirmed by various international economic ratings and monetary agencies, we are on the right path in fiscal management, transparency and accountability, that no doubt will pay dividends as we emerge from this COVID-19 crisis and economic recession as a result.”

Since July, the government has borrowed $795.4 million to meet its financing requirements.

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source https://thenassauguardian.com/dpm-confident-in-govts-ability-to-raise-funding-in-domestic-market/