Government to fully settle Social Security debt within 90 days

During his weekly radio address, Prime Minister Gaston Browne outlined his government’s strategy for resolving the outstanding debt, which has been substantially reduced from its original amount through systematic repayment efforts.

The Prime Minister disclosed that inherited liabilities totaling over $330 million have been brought down to roughly $218 million through an earlier bond mechanism, representing a reduction of more than $110 million in the principal debt.

“We have taken responsibility to pay previous Labour Party administration’s arrears, to pay UPP arrears—something that they never did,” Browne declared, drawing a contrast between his government’s approach and that of former administrations.

With a fresh bond arrangement now finalized, the government plans to address the remaining balance of just over $100 million. Prime Minister Browne expressed confidence that the upcoming bond issuance would enable complete settlement of all outstanding amounts.

David Mathias, Director of Social Security, corroborated the Prime Minister’s claims, confirming that the current government has not withdrawn any funds from the Social Security reserves.

Browne acknowledged that while his administration maintained consistent full premium payments between 2014 and 2022—a period during which previous governments had only made partial contributions—the financial strain of the COVID-19 pandemic disrupted this pattern approximately two years ago.

However, he emphasized that during the height of the pandemic, when private sector contributions declined sharply, the government actually increased its payments to ensure pensioners continued receiving their benefits without interruption.

“We increased our payments in order to make sure that pensions got paid,” the Prime Minister stated, underscoring his administration’s commitment to protecting vulnerable citizens.

The government has additionally strengthened its financial position by expanding its investment in CAF shares to $438 million, further demonstrating fiscal responsibility.

With the bond floatation imminent, Prime Minister Browne anticipates that all financial obligations to the Social Security Scheme will be comprehensively settled within 60 to 90 days.