The Tribune

EDITOR, The Tribune

The question was is the Bahamas Treasury broke? Deputy Prime Minister of Finance answered that question when he mentioned the recent $1.3bn borrowed was to keep The Bahamas afloat during these difficult times with 100% shutdown of tourism, 100% shutdown of Foreign Investment and massive decline in revenue. The Memorial weekend in America saw the lowest air travel, hotel accommodation, bus transport and car transport in over 100 years. This is because Americans are still afraid of dying or getting coronavirus. One in every four restaurants are closing due to poor businesses. Americans are now more than ever cooking and eating at home. The next problem is that the majority of Americans are not going back to work scared and concerned about getting the Coronavirus, 24 States had seen an increase in the spread of the Coronavirus that have already killed over 100k and infected over 1.5 million Americans in the United States. Americans are now also spending less and being more cautious in spending money.

Hertz a billion dollar 500 Fortune Company filed Bankruptcy protection because fewer Americans travelling in America means less rental business, will have to sell over 100k rental cars in a restructuring. What this means for the Bahamas government is that if they are spending more than they are making and borrowing more than they are making, how are they going to pay for it? It is not a matter of if the Bahamian dollar will devalue, it is now when it will devalue? The Bahamas is not financially prepared for National Disaster and the question is are the Bahamian people covered to continue receiving their pension funds from the government that is a billion dollar debt and will the National Insurance that pay pensioners and disabled Bahamians by not running out of money in the Bahamas economic crisis. The question remains if the Bahamas defaults on its loan debt payments this year it would automatically cause the Bahamian dollar devaluation. A Bahamian has expressed concerned about the 10 billion debt loan, Rick Lowe Executive with the Think tank saying our worst nightmare has come with the recent borrowing of 1.3 billion dollars. Can the Bahamas Tourism, Foreign Investment and Economy survive for 2-3 years in a recession and having no money to pay government employees payroll and keep running government corporations at huge debts and losses?

PEDRO SMITH

June 8, 2020.