PANAMA CITY, Panama, CMC—The Antigua and Barbuda authorities says it can “quickly situation” a long-term bond with a low rate of interest to repay excellent short-term and high-interest debt.
Prime Minister Gaston Browne, talking on the “Latin America and the Caribbean Worldwide Financial Discussion board 2025: Learn how to return to the trail of progress?, which ended right here on Thursday, stated debt has perennially strangled small island growing states (SIDS).
Addressing the particular ministerial session on “Accelerating Growth Financing for the Caribbean: Agility, Flexibility, Impression,” which introduced collectively finance ministers from throughout the area, Browne stated that the brand new initiative will assist create extra fiscal house to fund improvement and construct local weather resilience.
He stated that the Growth Financial institution of Latin America and the Caribbean (CAF) may have a task to play going ahead as this may be certain that debt servicing prices are extra manageable.
He stated that is essential regardless that Antigua and Barbuda has made vital strides in lowering its debt-to-GDP ratio from over one hundred pc in 2020 to 62 % as of the tip of final yr.
Browne additionally introduced that the federal government is contemplating a debt for local weather swap initiative.
“One of many methods we’re at present negotiating is a debt for local weather swap, a transformative method that turns debt obligations into funding resilience and local weather adaptation initiatives.
“By levering these agreements, Antigua and Barbuda plans to cut back our debt obligations additional and safe very important assets to fortify our infrastructure and communities towards the rising threats of local weather change.”
Prime Minister Browne stated that improvement companions comparable to CAF can considerably assist SIDS overcome progress challenges.
“By way of platforms just like the Latin American Caribbean Worldwide Financial Discussion board, tailor-made help might be supplied to SIDS by financing mechanisms that mirror our distinctive vulnerabilities.
“Investments in local weather resilience, schooling, and know-how should be prioritized to empower nations like ours to outlive,” he stated, warning that local weather change is already presenting vital issues for SIDS.
“Rising sea degree is eroding our coastlines, whereas stronger and extra frequent hurricanes destroy life and livelihoods, together with properties, companies and infrastructure. These disasters have devastating social and financial penalties, setting again improvement positive factors, growing our reliance on borrowing and borrowing repeatedly for financial restoration and to restore broken infrastructure,” Browne stated.
In the meantime, Antigua and Barbuda have grow to be full members of the US $70 billion CAF, following preliminary discussions throughout final yr’s SIDS Summit in Antigua and Barbuda.
Browne stated the discussions weren’t only a regional precedence however “a matter of survival for small island growing states.
“Antigua and Barbuda is happy to be the most recent shareholder authorities of CAF, Browne stated after signing two agreements formalizing the nation’s intent to grow to be a shareholder member of CAF.
