Column: ‘Economy Moving In Right Direction’

July 4, 2022

[Opinion column written by MP Zane Desilva]

In the coming 2-3 years, Moody’s expects fiscal performance will be supported by the recovery in economic activities. Moody’s expects growth performance to regain momentum compared to previous years, supporting a gradual downward trajectory in government debt.

The tourism sector and investments in new hotels on the Island are important drivers for improved growth prospects. – Moody’s press release, June 21, 2022

In May 2022, ratings agency Standard & Poor’s reaffirmed Bermuda’s A+ sovereign credit rating, A-1 short-term rating, and AA+ transfer and convertibility assessment, and now there’s more good news as Moody’s Investor Service [Moody's] affirmed Bermuda’s A2 issuer and senior unsecured bond ratings and maintained Bermuda’s stable outlook.

This latest positive rating is yet another independent, unbiased, professional assessment of Bermuda’s economic strategy. It is a validation of our correct and prudent decisions made when managing the Island’s economy. Our hard work and strategic planning are gaining traction as the Government steadily rebuilds the economy post-pandemic.

It’s no small feat that the favourable ratings have been achieved despite the fact that the Government was required to raise the debt ceiling to borrow $200 million due to the guarantee on the OBA administration failed Morgan’s Point Project and an additional $44 million that taxpayers have had to pay to Skyport.

There is no doubt; We are making progress. But until we reach the point of full recovery, your Government will continue to help vulnerable people throughout the Island with targeted financial assistance, educational and training programs, and tax breaks.

We will continue implementing Bermuda’s Economic Recovery Plan [ERP], which received praise from Moody’s in their June 21st press release. The ratings agency stated, “Bermuda is a global centre for insurance and re-insurance industry, and the sector remains attractive to new businesses.

Over the medium term, Bermuda will be in a position to take advantage of new opportunities in insurance and re-insurance sectors, such as cyber and climate risk underwriting, which Moody’s expects will expand in the coming years, signaling the potential for strong growth in this emerging sector in Bermuda.”

Moody’s also gives country ratings for environmental, social and Governance [ESG], and we are proud to report Bermuda received the highest possible score for Governance. The report highlights the Government’s fiscal and economic policies as key in maintaining Bermuda’s resilience during exceedingly difficult times globally.

Bermuda’s economy is moving in the right direction, as per the professional analysis from global financial agencies that clearly show the Island’s outlook is stable and poised for growth.

- MP Zane Desilva, Constituency 29 – Southampton East

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Comments (12)

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  1. sandgrownan says:

    oh &**k Off Zane.

    Think about it. There could have been a hotel on Morgan’s Point in 1999 had the PLP clowns, specifically Arthur Hodgson, the great educator and DREB not scuppered the plan by behaving like a bunch of spoiled children.

    And, the PLP called in the loan guarantee much too early as potential investors were poised to take it on. The Morgan’s Point fiasco is entirely on the shoulders of the PLP.

    The Airport? Really? We all know it was a good deal, and we know the reason the PLP are bleating is because you couldn’t get your sticky little fingers in the pot. You know, you would still have had to pay to run the airport through COVID don’t you? Stop being so disingenuous.

    The economy is toast, we all know, even you know it. Stop lying.

    • trufth says:

      Some people would rather lie to themselves and everyone they work for in order to avoid the awful truth.

      It doesn’t change the truth though.

    • watching says:

      The Airport is in no way a good deal and everyone knows it. It has cost Bermuda MILLIONS of dollars.
      Yes we would have had to pay for the airport through covid but the minimum revenue guarantee likely wouldn’t have been triggered. That clause is the fault of the OBA government. The fact that we have no ownership of the airport for 30 years is the OBA government.
      The PLP government definitely isn’t perfect, but the OBA needs to accept their role in our financial state.

      • Toodle-oo says:

        And the hospital (wing) deal is ? ?

        Oh , that’s different ‘because we needed it’ LOL

      • sandgrownan says:

        That’s fundamentally untrue. Apart from the obvious questioning of the integrity of a Big Four firm, let’s look at some facts.

        In terms of renovation or new airport (we got the latter), we know we’d essentially got it for the cost of revenue for 30 years. That was how much? $300m. Where exactly would the PLP get that kind of money from and importantly, at what cost? Throw in all the usual PLP and civil service bullsh*t, and pocket lining, and what would it cost then?

        Zane and the rest of the idiots tend to go on about the revenue guarantee. Go and look at some old financials…it cost roughly $40m a year to run the old airport and on a good year you might make $10m. Two and half years of COVID and you’d still have to eat that expense. And that’s before you factor in renovating the old airport had we done nothing – with all the attendant Bermudian incompetence and inefficiency.

        Out financial state lies firmly at the door of the PLP, not because of the OBA’s airport redevelopment, whatever you may think of it. We have back to back qualified audit reports and explosive growth in successive annual operating deficits and related debt obligations under the PLP, which proves their inability to handle even a p*ss up in a brewery.

      • saud says:

        The airport was the BEST deal…even won an award for being the BEST deal…thanks to the OBA.

        The PLP would still be building a $5B airport, today….of course, failing to meet the international security standards and having first world airlines refuse to fly here.

        But, Bermudians think they’re special. LOL

        • 60/40 says:

          Its a nice airport I agree but someone needs to find out why the bags are taking so long to placed on the bagged carousel. I travel every month and it’s really sad. You clear Immigration and Customs and 45 mins later everyone is waiting and thinking that the bags are on a different flight. The media needs a engage Skyport on this. Next time I’m going to bring out my cell and record the drama. Maybe the organization that gave us the reward will take it back.

      • iyiyi says:

        So what ! We are in a position created by both parties . We can nit pik about …WHO… WHERE.. .WHAT..and WHEN all we like .
        What we need is Politicians who truly want to work together to benefit us as a whole but seems greed , retribution and many other things will just destroy this Island and that comes from both ends of the spectrum.
        I just hope there is something brewing for the future and proper governance .

  2. Youkidding? says:

    Is this for real ? A little secret….you are $4b in debt…with only a small population to pay it !!
    Get real, man !

  3. unknown800k says:

    zaney getting ready for his premier run.
    cant be campaigning for more work or rents from the current puppet, he has enough.

  4. Dunn juice says:

    How come ego 2 doesn’t mention how bad the hospital is.

    • sandgrownan says:

      And of course, Zane forgets to mention that the airport deal was conducted under the full glare of public scrutiny. The hospital not so much, we still don’t know what DREB’s vanity project is going to cost our children.