Prime Minister Gaston Browne, who also serves as the country’s finance minister, has projected a decrease in the Debt-to-GDP ratio to below 60 percent, which is the international standard.

Over the weekend, PM Browne highlighted the government’s prudent economic management, aiming to reduce the crucial ratio to around 58 percent by the end of the year, which is lower than the international threshold.

He emphasized that the public sector debt had escalated to 104 percent of GDP under the UPP Administration, and despite an increase to approximately 100 percent due to the COVID-19 pandemic, his administration has achieved a significant reduction to 58 percent in about four years.

PM Browne pointed out that the favorable economic report indicates that the country is repaying more loans than it is borrowing. He mentioned that during the years when the UPP government experienced growth, a significant portion was funded by borrowing.

PM Browne emphasized that the current growth has not been driven by borrowings, unlike the previous administrations, particularly the UPP, whose growth was primarily due to the $2 billion borrowed, leading to an unsustainable debt of 104 percent of GDP.

The prime minister also stated that his government’s success extends to this area, and the next focus will be on the debt service ratio, which he considers to be excessively high. The plan is to obtain a consolidation loan to pay off the smaller high-interest loans and replace them with a longer-term amortization arrangement.

PM Browne hopes to accomplish this by the first quarter of next year, which he believes will alleviate the current cash flow issues.