Video: Finance Minister On Borrowing $750M

August 5, 2013

After borrowing $750 million, the Government plans to raise another $50 million by offering a Bermuda dollar local issue, Finance Minister Bob Richards said today [Aug 5].

Minister Richards held a press conference about the recent bond issue, which saw the Ministry of Finance raise $750 million in 10-year bonds, at a yield of 4.85%.

The Minister previously said that the borrowing is anticipated to cover three years of operating deficits, and borrowing it all now will save money in the long term by locking into lower interest rates.

When asked today how much money it will save, Minister Richards said “only time will tell,” but said it should be in the range of $20 to $40 million over ten years.

The Minister also said that “abolition of term limits in Bermuda was a key point in selling this thing to institutional investors around the world.”

“This is not the end of our fund raising,” said Minister Richards. “Remember I talked about the $800 million, and we’ve got $750 million that we have raised so far. ”

“The Government is planning a $50 million Bermuda dollar local issue, we will be coming up with that in due course, maybe in a month or so, where the average Bermudian can invest in a Bermuda dollar bond.”

20 minute press conference with Minister Richards: 

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  1. $750M Government Bonds Approved On BSX | Bernews.com | August 7, 2013
  1. Terry says:

    Irony is, 60% of readers have no clue as to what he speaks about.
    Think about it.

    • Out of flight says:

      We understand and what we don’t hear from you and many of you is how are we ever going to pay it back.

    • Mazumbo says:

      And Bob is in the 60% LOL

  2. sonso says:

    well at least he is letting us know what is going on! with Ms Cox we were ALL kept in the dark, and thats a fact!

    • watching says:

      that is such a lie. Ms. Cox constantly held press conferences to update the public.

      • E$ says:

        sure she did…besides de fact she didn’t have a clue how to run de country

      • Victor says:

        Who cares? She is gone along with her nasty brand of sneaky politics; neither is coming back.

      • and she said? says:

        Paula regularly held press conferences but the big problem was that she managed to use a lot of very big words to say absolutely nothing.

      • Real says:

        I wasn’t a fan of the PLP in the years following Jennifer Smith. However, Mrs. Cox did often update the public although Im sure her instructions came from the bossman. I also respected her for trying to lead the country while others abandoned the sinking ship. I know I would have never signed up for the job after Dr. Brown. I respect her for at least stepping up while most in her party were stepping down.

  3. SoMuchMore says:

    all she wanted to do was by clown hats. anyway where is she now?

  4. Johnny says:

    Is anybody going to comment on the article? I am want to know more about this Bermuda $ issue. It gets boring when people take up space talking a lot of BS.

  5. Glenn Chase says:

    Here we go again borrowing more monies with no guarantees. I guess S&P, Fitch etc. will have a ‘field-day with this episode!

    • swing voter says:

      we have no choice but to borrow until we could start making the money we used to make…right now our revs are down about 2B. If we don’t borrow then our quality of life spirals downward immediately. we need big foreign investment now….gaming, hotel casino, shelly bay race track for dogs and horses, even a nude beach should be considered. On the tech side, invite people with money to build their enterprises here, guys like Branson, Gates, Bloomburg and other top 50 rich people

      • Small island mentality says:

        To get FDI money you can’t tell investors “I’m Bermudian and I collect rent”

        Bermuda is not desperate enough yet to take foreign investment, as at that point, even IB C suite who currently run the show become second class

        Ready for that Bermuda? Where DonaldTrump tells youhe s bringing his people from Jersey to serve soda in his Casino?

  6. Spilt milk says:

    How does govt. intend to pay back the bond if revenue is already down? Taxes have to go up because we have to pay back the bond and we have to pay back the debt we already owe. Inflation will most likely increase.. By the time the fallout happens plp will be in power again and it will proly be da fault….

  7. Navin R. Johnson says:

    A roll of the dice that revenue will go back up…..recognize that something needs to change in order to achieve growth of foreign investment……..gaming is a must and should have been done yesterday without it there is no tourism revival and even that is a gamble no pun intended……tweaking what we already have does nothing and cash is needed to inject stimulus………be nice to have some civil servants retire and go to work at a casino……off our payroll and on to someone else’s ….

  8. Impressive says:

    Bob was so aggressive and abrasive leading up to the election, he had all the answers, was critical of every move the previous government made.. Always speaks in such an arrogant and condescending manner, as if he has all the solutions.. Well last night was the first time I have ever seen him even show an ounce of humility.. life!!!!

  9. Impressive says:

    A bond is simply a fancy name for a loan.. The holder of the bond will loan $750M to the Bermuda Government and in return will receive interest payments on a semi annual basis at the rate on the bond.. If the rate of the bond is less than the market rate. the bond will sell with a discount, if the interest rate on the bond is higher than the market rate the bond will sell as a premium.. At the end of the period of the bond, the Holder will receive the 750M minus the discount or plus the premium.

    • Edmund Wells says:

      Impressive-

      A small clarification- at maturity (the end of the loan period), the holders of the bonds will receive $750 million- no more, no less.

      EW

      • Impressive says:

        yes of course,, through present value,, so yes you are correct.. bless up