Antigua and Barbuda's debt-to-GDP ratio has fallen to approximately 60 percent following a significant reduction in the country's external debt obligations, positioning the government to more readily access international financing for future development projects, according to Antigua News Room.
Director General of Communications Maurice Merchant disclosed the updated debt figures Thursday during the weekly post-Cabinet media briefing. He was responding to questions arising from Cabinet's earlier announcement that the government had reduced its outstanding debt to the People's Republic of China from more than US$300 million to approximately US$120 million.
Merchant said finance officials and Cabinet members were enthusiastic about the progress. "The government is very excited about this news coming from the finance officials in relation to the reduction of the debt to the People's Republic of China," he said.
Merchant noted that the bulk of the Chinese-funded debt was inherited from major infrastructure projects undertaken before the current administration took office. These included financing for the former Mount St. John's Medical Centre, the VC Bird International Airport redevelopment, and the Wadadli Power Plant. He said only the financing for the seaport expansion was contracted during the Gaston Browne administration.
He described bringing those obligations down to roughly one-third of their previous level as a major milestone. "Repayment of these debts, bringing it down to a third of what it was before, is a significant milestone," Merchant said.
The communications director said the reduction reflects the government's commitment to responsible debt management. "It sends a signal that government is very serious about its obligations to financial institutions [and] the management of its debt stock," he said.
On the country's overall debt position, Merchant was direct about the optimism within government circles. "We are at the threshold of about 60 percent of debt to GDP, and I can tell you that the finance officials and the Cabinet are dancing. They are excited about this," he said.
The lower debt burden, he explained, strengthens Antigua and Barbuda's standing with international lenders. "It places the government in a particular position that it can go to international institutions and secure financing for various capital projects within Antigua and Barbuda," Merchant said.
He added that the improved fiscal position also enhances the country's reputation abroad. "It tells the international organizations and the international community that Antigua and Barbuda's government is working in the interest of the people in a prudent and responsible manner," he said.
As reported by Antigua News Room, Cabinet was also advised at the same briefing that the government had fully repaid the loan used to finance the Sir Lester Bird Medical Centre. Ministers were further informed that the debt reduction creates greater fiscal space for investment in national development priorities and strengthens the country's broader macroeconomic position.
