Antigua and Barbuda has reduced its outstanding debt to the People’s Republic of China from more than US$300 million to approximately US$120 million , marking a significant milestone in the government’s debt reduction strategy, Director General of Communications Maurice Merchant said Thursday.
Speaking during the weekly post-Cabinet briefing, Merchant said Cabinet received an update on the country’s external debt portfolio as part of a comprehensive second-quarter fiscal performance presentation by senior officials from the Ministry of Finance.
According to Merchant, finance officials informed ministers that the sharp decline in Chinese-funded debt reflects the success of the government’s fiscal management strategy, sustained economic growth, improved revenue performance and a disciplined approach to meeting financial obligations.
“The government has reduced its outstanding Chinese-funded loan obligations from more than US$300 million to approximately US$120 million,” Merchant said, describing the reduction as a major achievement in the country’s public debt management programme.
He explained that the original borrowing from China financed several of the country’s largest public infrastructure projects, including the expansion of VC Bird International Airport, the fifth berth at the St. John’s Port redevelopment project, the Sir Lester Bird Medical Centre and road infrastructure works.
Merchant told reporters that the original loans included US$80 million for the airport expansion project, US$20 million for the Sir Lester Bird Medical Centre and US$55 million for road infrastructure, among other financing arrangements.
One of the most significant developments, he said, is that the loan associated with the Sir Lester Bird Medical Centre has now been fully repaid.
“Members further noted with great satisfaction that the loan associated with the Sir Lester Bird Medical Centre has been fully liquidated, representing another important milestone in the government’s debt reduction programme,” Merchant said.
He said Cabinet credited the reduction in Chinese debt to prudent fiscal management and the administration’s commitment to servicing its obligations on time.
Merchant said ministers were advised that stronger customs collections and improved government revenues have enhanced the country’s ability to reduce debt while continuing to fund key public services and capital projects.
Cabinet was also told that the reduction in external debt strengthens Antigua and Barbuda’s fiscal position by creating additional room for future investments.
According to Merchant, ministers concluded that the lower debt burden enhances the country’s economic resilience, creates greater fiscal space to finance national development priorities and further strengthens Antigua and Barbuda’s macroeconomic position.
The debt update formed part of a broader fiscal review presented by officials from the Ministry of Finance, who also outlined continued growth in customs revenue, expenditure management and the government’s decision to maintain current fuel prices despite rising international energy costs.
This article was originally published by Antigua News Room. Read the original article here: Antigua and Barbuda Cuts China Debt by More Than Half, Cabinet Told.