The Tribune

By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

OPPOSITION leader Michael Pintard has urged the government to provide Bahamians with the opportunity to purchase international bonds while they are trading low.

In a press release issued recently, Mr Pintard noted the Davis administration’s “reckless” fiscal management contributing to the country’s declining bond position.

“The Opposition notes that The Bahamas bonds continue to trade well below their par value as has been acknowledged by the government’s own hired experts in the field,” said Mr Pintard.

“We recall that upon coming into office, the prime minister back in October 2021 said in his contribution to the supplementary budget that then bond price performance was due to what he termed poor fiscal management which led to weakened investor confidence.”

Mr Pintard noted that The Bahamas’ bond series 20/32 was trading at over 90 cents on the dollar in October of last year when Prime Minister Phillip “Brave” Davis commented on the matter, however currently those bonds are trading at 63 cents on the dollar.

He said despite the government’s critiques of the former administration, due to the Progressive Liberal Party, the situation has been made worse.

“In other words, despite his critique of the FNM government, all of the reckless fiscal actions of the Davis administration has only made the situation worse. As we have said before, the PLP needs to put down its incessant PR campaigns and photo-ops and get to the business of serious governance,” Mr Pintard said.

Mr Pintard urged the PLP to focus on “serious governance.”

He suggested in his statement that the government work with the Central Bank of The Bahamas to allow Bahamians to take advantage of the nine percent plus returns on the bonds.

“The FNM also recognises though that there is an opportunity with these heavily discounted bonds to allow more Bahamians to purchase these bonds and take advantage of the nine percent plus returns on the bonds.

“This will require the government to work with the Central Bank to perhaps create a special window to facilitate for ordinary Bahamians. But our understanding is that right now only a select number of sophisticated and wealthy Bahamians have access to these bonds.”

He said this partnership will allow the government to bring more of its foreign debt holdings onshore and allow ordinary Bahamians to participate and generate decent returns over the little or no interest being offered by most commercial banks.