GOVERNMENT’S MOUNTING financial problems have forced it to turn to Parliament for $1 billion in elbow room.
In the first such move since 2012, the House of Assembly yesterday permitted the Freundel Stuart administration to increase from $6.5 billion to $7.5 billion the limit up to which Government can borrow domestically.
Minister of Finance Chris Sinckler defended the move to amend the Local Loans Act for this purpose. He said it was necessary because the fiscal deficit was still too high and funding was needed to cover the shortfall.
The St Michael North West representative dismissed overseas borrowing as a viable option largely because Barbados no longer had an investment grade credit rating. He also said “it’s been a deliberate strategy of the Government” not to borrow too much foreign money. . .” (SC)
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