Antigua and Barbuda has cut its outstanding debt to China from more than US$300 million to approximately US$120 million, the Director General of Communications Maurice Merchant announced Thursday.
Merchant made the disclosure during the weekly post-Cabinet briefing, where ministers received an update on the country's external debt portfolio as part of a comprehensive second-quarter fiscal performance presentation by senior Ministry of Finance officials.
Finance officials told the Cabinet that the sharp decline in Chinese-funded debt reflects the government's fiscal management strategy, sustained economic growth, improved revenue performance and a disciplined approach to meeting its financial obligations.
"The government has reduced its outstanding Chinese-funded loan obligations from more than US$300 million to approximately US$120 million," Merchant said, describing the reduction as a major achievement in the country's public debt management programme.
The original borrowing from China financed several of the country's largest public infrastructure projects, including the expansion of VC Bird International Airport, the fifth berth at the St. John's Port redevelopment, the Sir Lester Bird Medical Centre and road infrastructure works. The original loans included US$80 million for the airport expansion, US$20 million for the Sir Lester Bird Medical Centre and US$55 million for road infrastructure, among other financing arrangements.
A particularly notable milestone in the debt reduction effort is the full repayment of the loan associated with the Sir Lester Bird Medical Centre.
"Members noted with great satisfaction that the loan associated with the Sir Lester Bird Medical Centre has been fully liquidated, representing another important milestone in the government's debt reduction programme," Merchant said.
Cabinet credited the progress to prudent fiscal management and the administration's commitment to servicing its obligations on time. Ministers were also advised that stronger customs collections and improved government revenues have bolstered the country's capacity to reduce debt while continuing to fund key public services and capital projects.
The lower debt burden, ministers concluded, enhances Antigua and Barbuda's economic resilience, creates greater fiscal space to finance national development priorities and further strengthens the country's overall macroeconomic position.
The debt update formed part of a broader fiscal review presented by Ministry of Finance officials, which also covered continued growth in customs revenue, expenditure management and the government's decision to maintain current fuel prices despite rising international energy costs.
