Govt to extend unemployment and food assistance programs

As he announced the extension of the government’s unemployment and food assistance programs to the end of January 2021, Prime Minister Dr. Hubert Minnis expressed optimism about The Bahamas’ short-term economic prospects.

However, he warned that the road to full economic recovery will be a long one.

“To continue to meet the needs of many of our citizens, the government will extend, yet again, the unemployment benefit assistance through January 2021,” Minnis said during a national address yesterday.

“This extended unemployment benefit program, which is funded by the government but administered by [the National Insurance Board] NIB, has benefited 36,959 Bahamians whose employment benefits ended after the 26 customary 13 weeks, or who otherwise would not qualify for unemployment.

“The payouts for this program at the end of November totaled just over $70 million. The extension of the program through the end of January will mean that tens of thousands of Bahamians will continue to get some measure of assistance until they are called back to work.

“Similarly, the government will extend its food distribution program for the first quarter of 2021 with an allocation of another $10 million dollars to provide food assistance to the most vulnerable in our society. This program has, to date, provided assistance to over 100,000 Bahamians.”

Minnis said that while the country remains in a difficult economic position, the government is doing all it can to provide assistance.

“Despite the fact that government revenues are down by as much as 50 percent, we are ensuring still that we do as much as possible to provide food and income replacement to assist those in need,” he said.

The prime minister said that with resorts scheduled to reopen soon, economic recovery should follow, but cautioned that there are still difficult times ahead.

“As we enter the holiday season, there is reason for growing optimism that the economic recovery is broadening,” he said.

“The recent decision by major resorts, such as Atlantis, Baha Mar and the Hilton, to reopen their properties, will start to restore employment opportunities for the many Bahamians who have either been furloughed or laid off as a result of COVID-19.

“In addition to restoring incomes and consumption, these reopenings will provide the government with badly needed revenue.

“Government finances are also under tremendous strain because of the unplanned unemployment, social and economic support provided by the government to help those in need during this unprecedented time.

“An improving financial positive outlook is shared by the international capital markets who, just last week, demonstrated an extremely positive response to the prospects of a reopening Bahamas economy.

“The recent bond offering was oversubscribed by hundreds of millions of dollars.”

He added, “Yet, despite the promising developments, we remain in a very difficult place economically.”

Minnis continued, “Although the reopening of the tourism economy will bring welcomed relief to many hospitality workers, families and the country as a whole, we know there are still difficult times ahead and difficult decisions to make.”

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