Prime Minister Perry Christie
By KHRISNA VIRGIL
Tribune Staff Reporter
kvirgil@tribunemedia.net
PRIME Minister Perry Christie criticised international credit ratings agency Standard & Poor’s yesterday for its “pessimistic,” “downbeat” assessment of the Bahamas’ economy, while insisting his administration has a clear vision of the policy framework needed to redress public finances.
He said this made him confident that this country is on the cusp of economic growth.
Mr Christie, who is also minister of finance, questioned the recent downgrade from S&P, suggesting he has concerns about the agency’s credibility.
Last week, S&P downgraded the Bahamas’ credit rating due to the “economic shock” from Baha Mar’s bankruptcy filing.
The nation’s leader insisted yesterday that there should be no doubt among Bahamians that his administration remains committed to a timely resolution of the Baha Mar dispute and the resort’s completion in a manner that works in the best interest of the country.
Baha Mar stakeholders have been engaged in a bitter court battle for weeks over the resort’s future. A US bankruptcy judge recently ordered all parties involved to keep talking ahead of a September 4 hearing in the Supreme Court about the government’s winding-up petition.
Mr Christie’s statement came after two major international credit rating agencies released assessments of the Bahamas’ economic outlook.
On Monday, Moody’s maintained its existing rating and outlook on this country’s creditworthiness.
However, last week S&P took the opposite direction when it downgraded the Bahamas with a forecast of depressed growth due to the Baha Mar deadlock and long term structural weaknesses. S&P put this country’s sovereign rating at “BBB-/A-3” from “BBB+/A-2”, just one notch above so-called “junk status.”
“Mr Speaker let there be no doubt either in this honourable House or among the Bahamian public, that the government is firmly committed to a timely resolution of the Baha Mar matter and the completion of the project, in a manner that will serve in the best interest in our country,” he told the House of Assembly.
“Despite that S&P takes a dim view of prospects for the project and suggests that as a result, real GDP per capita in the Bahamas will barely grow at all over the next several years.
“Mr Speaker such a downbeat assessment simply does not match up to reality. And in fact, it also flies in the face of some of the evidence that S&P itself presents in its report.”
He continued: “It is widely known that a prime prerequisite for a solid credit rating, strong investor confidence and buoyant economic growth is a sound and sustainable public finance framework.
“The government has been working diligently over the past three years to effect critical reforms to the major components of the fiscal accounts on both the expenditure and revenue sides.”
Mr Christie said to that end, the government has been pursuing a detailed and transparent medium-term fiscal consolidation plan designed to gradually reduce and eliminate the deficit and return the debt-to-GDP ratio to lower than more desirable levels.
Mr Christie went on to call S&P’s assessment “unfortunate” saying that it failed to fully and properly account for the government’s proactive and dynamic growth agenda in its analysis.
“The government has a clear vision of the policy framework that is requited to both redress the public finances and bolster growth and employment. We are actively and doggedly pursuing the various multi-faceted policies that comprise that framework.
“I am confident that we are on the cusp of a stronger, more prosperous and modern Bahamas for all Bahamians,” Mr Christie said.
Comments
banker 8 years, 7 months ago
More dead good news from the brain dead Prime Minister. Christie is totally flummoxed as to why S&P doesn't fall for his BS like some Bahamians do.
Everyone agrees, including Bahamians, that there are huge structural weaknesses. Christie doesn't even admit to that. Ask the growing legion of unemployed as to whether Christie has a plan or if the Bahamas is on the cusp of an economic revival.
jackbnimble 8 years, 7 months ago
"The nation’s leader insisted yesterday that there should be no doubt among Bahamians that his administration remains committed to a timely resolution of the Baha Mar dispute and the resort’s completion in a manner that works in the best interest of the country."
How do you get a "TIMELY RESOLUTION" when you put the matter in court knowing as a trained lawyer that the legal riff-raf will only create further delays.
Junk bond status here we come!
Required 8 years, 7 months ago
Perry "insisted ... that his administration remains committed to a timely resolution of the Baha Mar dispute..."
And once that is done, he will turn his attention to helping Noah complete the Ark.
MonkeeDoo 8 years, 7 months ago
I think that there is a boatload of geriatric Members and Ministers in the PLP that should just be retired now. What did PGC ever know about finance, except when it comes to his and his family's personal finances. He is going to question S & P ? Too stupid !
Clamshell 8 years, 7 months ago
That is hilarious, Perry Christie questioning S&P's credibility. It's like a rat questioning the credibility of an elephant.
MonkeeDoo 8 years, 7 months ago
And BJ Nottage just exposed his stupidity yesterday or day before. And the young ones are scared to death to say anything. Even if they knew it.
MonkeeDoo 8 years, 7 months ago
The Bahamas Investor came out today, with Baha Mar as its headline story. This too is a Dupuch Publication but its readership is truly global and mostly high net worth and very high net worth. The kind of people that bring FDI to this dumbo little country of ours. Sorry Birdie !!! This Government just has no idea how much damage it is doing to this country.
MonkeeDoo 8 years, 7 months ago
Maybe we'll be saved by Winder tomorrow. ?/!
Regardless 8 years, 7 months ago
The PM must be relying solely on the US to send tourists to keep the nation's economy going and growing. China's economy is having serious issues which have set off a negative trend in the markets. Canada is in recession and warning their people to avoid The Bahamas. The EU is teetering on disaster. Given The Bahamas is publicly rowing with its largest investor and stating future investors should be psycho-analyzed, I would imagine Cuba is looking pretty interesting to US investors more and more. I guess the PM knows something that the ratings agencies and the rest of us do not.
TruePeople 8 years, 7 months ago
What the politicians need to be aware of is their illusions of grandeur.
What i have notice about this administration is that according to them they can do no wrong, it is everyone else who is wrong. They actually think they big. If and when US tourist stop coming here then what?
Probably they'll start a tourism campaign targeting Haitian tourist as their last resort to survive. That would be poetic justice and what this administration deserves. Sadly, it is not what the Bahamian people deserve....
MonkeeDoo 8 years, 7 months ago
The PLP have become like the Fairy Tale, "The Emperors New Clothes". Christie is naked but they praise him nonetheless. When will it end ?
Sickened 8 years, 7 months ago
This comment was removed by the site staff for violation of the usage agreement.
banker 8 years, 7 months ago
As to what TruePeople said (a couple of entries up): I found it interesting to take a look at the Bahamian companies sponsoring or participating in Haitian Flag Day. If we can't make money off US tourists, maybe we can milk the Haitians.
DillyTree 8 years, 7 months ago
A dose of reality and Perry Christie can't deal with it -- still denying what is so obvious to anyone with even half a brain.
Craig 8 years, 7 months ago
Gibson says that all foreign investors should be subject to psychological testing. I wonder if this should apply this to Priministers also? I am no psychologist but this not taking responsibility for ones own problems and blaming others, must be signs of some type of disorder. Lord please send us a competent leader. We need one ASAP!!!
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