The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

MINISTER of State for Finance, Michael Halkitis, yesterday confirmed the imminent launch of a Bahamas Government Registered Stock (BGRS) issue, telling Tribune Business it was very likely it would come out early next month when the new fiscal year began.

Mr Halkitis told Tribune Business: "We are beginning a new fiscal year on July 1, and during the Budget debate we made a resolution to borrow $512 million - the sum being required by the Treasury to cover the holes in the recurrent and capital accounts.

"What will happen is normally the Treasury will make a determination on when we start to utilise that borrowing capability. It's very likely they will come out in the early days of the new fiscal year to get some of the funds to do some of the expenditure that we undertook to do, and then as we go on - maybe later in the year - they will come back to the market.

"It will be done on a phased basis as the Treasury determines that the funds are needed. The Treasury does it, and then they would advise us. I have not been advised yet. It's a routine raising of money."

Industry sources confirmed to Tribune Business earlier this week that the Government was preparing to launch a mammoth $200 million Bahamas Government Registered Stock (BGRS) issue next month, as it bids to cover its projected $550 million GFS deficit for the upcoming 2012-2013 fiscal year.

The Government is borrowing an astonishing $669.205 million to cover its financing needs for the 2012-2013 fiscal year, with debt servicing (interest) costs now the single largest line item in the Budget.