News Story

Source: Ministry of Finance, The Bahamas

Date: July 09, 2025

Contact: Financemail@bahamas.gov.bs

Section 13 of the Public Debt Management Act, 2021 mandates that the Minister of Finance ensure the publication of the government’s annual borrowing plan (ABP)—outlining the government’s projected borrowing needs, as contained in the approved annual budget, and including the categories and nominal amounts of debt instruments to be issued.

In compliance with these statutory requirements, and aligned with the broader debt management objectives, the FY2025/26 ABP aims to meet the government’s borrowing needs at the lowest possible cost, while effectively managing risk. According to the approved FY2025/26 budget, the government estimates gross financing needs (GFN) of $1,116.0 million—comprising $1,191.5 million designated for refinancing maturing debt securities and loans, and offset by the $75.5 million budget surplus.

The overall borrowing plan focuses on extending the average maturity of the debt to reduce liquidity and refinancing risk, while balancing cost and risk in the debt portfolio. The approach includes refinancing maturing Bahamian dollar-denominated securities through new issuances, accessing semi-concessional loans from multilateral lenders, and exploring liability management initiatives, where feasible.

Against the backdrop of prevailing global and domestic financial conditions, the government plans to raise approximately $579.4 million (51.9 percent) of the GFN in Bahamian Dollars, $228.0 million (20.4 percent) domestically in foreign currency representing a rollover of the promissory note arrangement with the Central Bank of The Bahamas for the FY2022/23 SDR borrowings, and $308.6 million (27.7 percent) in foreign currency from multilateral sources. The latter comprises $265.0 million in new loans from International Financial Institutions (IFIs), alongside an estimated $43.6 million in drawings on existing IFI facilities.

Although the FY2025/26 ABP does not include any international bond issuance, the government intends to proactively monitor market conditions to evaluate potential liability management opportunities.

The government views the ABP as a key component of its commitment to fiscal accountability and promoting transparency and borrowing predictability in debt operations, and invites the public to visit the national Budget Website (www.bahamasbudget.gov.bs) to access the FY2025/26 ABP and other fiscal and debt reports.