By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Opposition Financial Spokesman Kwasi Thompson is calling for greater transparency from the government after the Ministry of Finance’s public sector debt bulletin for the fourth quarter of the 2024-2025 fiscal year revealed an annual increase of $440.9m in debt.

Mr. Thompson described it as “shocking” that the Davis administration accumulated almost half a billion dollars in new debt between July 2024 and June 2025, demanding an explanation for the sharp rise in borrowing.

“This same PLP government kept saying they only needed about $70 m to cover the budget deficit. So why borrow over six times more than what should have been needed? What are they hiding?” he questioned.

The Ministry of Finance report revealed that at the end of June 2025, total public sector debt stood at $13.15bn, reflecting a $440.9m increase over the past year. Most of the rise was driven by central government borrowing, while government agencies and state-owned enterprises reduced their debt during the same period.

Foreign currency debt grew by $230.7m in the April–June quarter, making up 44.7percent of the total debt. Meanwhile, Bahamian dollar debt fell by $213.3m during the quarter but recorded a year-over-year increase of $283.2m. Bahamian dollar obligations now account for a slightly larger share—55.3percent—of the country’s overall debt portfolio.

The report also revealed that the government’s claims on the public sector increased by $71.6m, a 26 percent jump, making up 4.6 percent of total domestic debt. This rise came as other parts of the domestic debt shifted, including higher borrowing from commercial banks and the private sector, and reduced holdings by the Central Bank and public corporations.

Mr. Thompson criticized the government for what he described as attempts to conceal overspending through undisclosed loans to public corporations.

He pointed to a $10.9 m loan granted to the already over-budget Public Beaches & Parks Authority, as well as a $10 m loan to the Carmichael Village Project Development Company Ltd., which he claimed is a “ghost company” with no public explanation for its purpose or repayment plan.

“Public Corporations got $71.6 m in loans from the Treasury but none of these were ever announced publicly or allocated in the Budget documents. Where did that money really come from? The Public Beaches & Parks Authority, which was already $7 m over budget, somehow got another $10.9 m loan between April and June. But Beaches & Parks doesn’t earn significant money so how will they pay it back? Looks like the government just tried to disguise overspending as a “loan”,” said Mr Thompson.

“And don’t forget the mysterious $10 m “loan” to the Carmichael Village Project Development Company Ltd. This seems to be a ghost company, and the government still refuses to explain what the loan is for or how it will be repaid.

“When the government grants secret loans, attempts to hide overspending, and fails to explain phantom companies, it’s really hiding the truth from the people who will have to pay it back. Does the government’s silence mean it has something to hide? The Opposition is demanding answers on behalf of the Bahamian people.”