Antigua and Barbuda is deepening its partnership with the Corporación Andina de Fomento (CAF), the development bank for Latin America and the Caribbean, with plans to significantly increase its capital investment.
On Monday, Prime Minister and Finance Minister Gaston Browne secured parliamentary approval for the purchase of an additional 4,225 shares in CAF, valued at nearly US$60 million.
The move comes just months after Antigua and Barbuda joined the bank, investing an initial US$15 million. Browne told lawmakers that the government intends to raise its total stake to US$75 million, a level that will allow it to borrow up to four times its shareholding.
The administration is targeting as much as EC$400 million in loans from CAF to consolidate existing debt. According to Browne, the government plans to use the proceeds to pay off a series of high-interest loans, replacing them with financing at rates between five and six percent.
“This strategy will improve our cash flow and position us to clear outstanding obligations — including debts to local suppliers,” the Prime Minister said.
The motion sailed through the House of Representatives without debate, marking another step in the country’s efforts to restructure its debt and broaden its financial partnerships.
Lol the motion would have to sail though. Not like there are enough people to oppose.
In the Upper house would be the same thing
This looks like a smart move if it really lowers our interest payments. Antigua has been carrying heavy debt for too long.
US$60 million is a huge commitment though. I hope the government is making sure CAF loans don’t come with hidden conditions.
Loans are never free money. Yes, we’ll get access to major funding, but how will we pay it back without putting more pressure on taxpayers?