Debt Service Costs Projected At $121.4 Million

February 25, 2020 | 8 Comments

“Debt service costs for 2020/21 are projected at $121.4 million,” Minister of Finance Curtis Dickinson said as he delivered the 2020 Budget, with gross public debt estimated to stand at $2.717 billion as of March 31, 2021.

The debt service costs will equate to approximately $2.3 million per week, or around $332,000 per day.

The Budget report said, “Debt service costs for 2019/20 are forecast to be $2.7 million above the estimate of $116.5 million. This is due to interest and facility fee costs in relation to the borrowing incurred to make good on the Caroline Bay guarantees by purchasing the interests of the Tranche B and C lenders for the project.

debt service Bermuda February 26 2020

“Debt service costs for 2020/21 are projected at $121.4 million. Approximately $7.9 million of this expenditure is related to the Caroline Bay project. It is well recognised that interest rates are relatively low and the Ministry will therefore use the opportunity not only to finance the 2020/21 deficit but also to refinance the loan agreement arranged to facilitate the Caroline Bay obligations and to refinance existing more expensive government debt at a more favourable interest rate, therefore reducing debt service pressure on the budget.

“For the remainder of this fiscal year, the Government will continue to look for savings to offset the above-mentioned overages, and the Ministry of Finance will exercise prudent management of funds to ensure that we do not incur any additional borrowing.

“As at 31 March 2021, it is estimated that gross public debt will stand at $2.717 billion, and debt, net of the Sinking Fund, will be $2.678 billion, $72.4 million below the debt ceiling.”

click here Bermuda 2020 budget

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Comments (8)

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  1. Joe Bloggs says:

    “The debt service costs will equate to approximately $2.3 million per week, or around $332,000 per day.”

    Money that could have been spent on Bermuda and Bermudians had the PLP Government not borrowed so much money between 2005 and 2012.

    “As at 31 March 2021, it is estimated that gross public debt will stand at $2.717 billion, and debt, net of the Sinking Fund, will be $2.678 billion, $72.4 million below the debt ceiling.”

    I don’t know what to say to that.

  2. Donderered says:

    The ministry of debt

  3. wahoo says:

    PLP own this.

  4. Per Plex says:

    fully legalize cannibus like the rest of the civilized world, and you will easily make a billion or so back. or, twiddle our thumbs and look up at the sky for a miracle.

    • sandgrownan says:

      So, let’s say this is a good idea, are you saying there’s a billion unspent dollars?

  5. Sandgrownan says:

    Just think what you could do with 121 million.

    • Triangle Drifter says:

      For a start you could build a way over budget unneeded school. Oh…wait…never mind, the PLP already did that.

  6. Triangle Drifter says:

    $332,000 per day. Put that into persective. That is $5.50 per day for every man, woman & child on the island.

    If you are a family of 4 the PLP debt costs you $154 per week or $8000 per year. That is nothing more than debt service costs. How does that make you feel? What could you do with $8000 extra per year? 25-11. This is what it gets you.

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