Six million dollars over ten years. That’s what Finance Minister Marco Archer said government is saving by paying down debts.
In Monday’s budget presentation, he said spending around $71 million of budget surplus money to pay down debt has made enough of a dent in principal to renegotiate interest rates with lenders.
This, he said, is in addition to government’s no new borrowing policy, means less effort and expense will service the country’s debt.
“Financing costs have decreased steadily over the 2013/14 year to the 2015/16 period, as the core government debt balance has been declining at an average rate of 2.2%, or CI $23.5 million per year,” said Minister Archer.
Mr. Archer said he expects the entire public sector to bring in around $1.2 billion, with operating expenses expected at around $1.1 billion. After finance expenses, this amounts to a $46 million surplus across the entire public sector.
Mr. Archer says two public entities in the budget are hemorrhaging cash. CINICO is forecasting an $8.5 million loss, and the Port Authority is estimating a loss in the neighborhood of $900,000.