RE: Let's stick to the facts18 Jan 2021 00:30
Bahamas Suffered $400m 'Shortfall' On Foreign Inflows
As of Friday, January 15, 2021
#The Bahamas suffered a more than $400m foreign currency "shortfall" in 2020 that had to be covered by the Government's overseas borrowing activities, the Central Bank's governor revealed yesterday.
#John Rolle, addressing the Bahamas Business Outlook conference, disclosed that proceeds from the Government's $800m-plus bond issues were required to fill "the gap" created by import demand far exceeding vital private sector foreign currency inflows due to the devastation inflicted by COVID-19.
#While foreign currency inflows through the private sector dropped by 33 percent year-over-year, due to the tourism shutdown that hit The Bahamas' main foreign exchange earner, import demand slipped by only 13 percent as local businesses and consumers still had to meet essential needs such as food.
#"The Government’s foreign currency borrowing has provided inflows to supplement the private sector’s need and bolster the foreign reserves," Mr Rolle said. "In 2020, total foreign currency inflows through the private sector, as measured from commercial banks’ purchases of foreign exchange, fell by almost 33 percent.
#"Although expressed demand for foreign exchange to pay for imports of goods and services fell by approximately 13 percent, this left a shortfall of over $400m that had to be provided from other sources. The gap was closed by net inflows from government borrowing..."
#Mr Rolle said there was "no deliberate intention" to grow The Bahamas' foreign reserves via government borrowing, but the figures revealed yesterday show a situation that cannot be sustained for long unless this nation is able to swiftly revive tourism as its main foreign exchange earner.
#That is now in some doubt due to surging COVID-19 infection rates in the US and other major tourism source markets, which have also just introduced health protocols and border restrictions that will likely represent a further deterrent to travel, notwithstanding the start of vaccine roll-outs.
If we can prove oil reserves of a reasonable size it would be an instant boost to government borrowing leverage.
BPC saviour of the Bahamas and only 2.15p a share. Over £120million of share holders money already spent.
Bahamas government spend $0
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