By FAY SIMMONS

TRIBUNE BUSINESS REPORTER

jsimmons@tribunemedia.net

Nearly half of the $1.3bn increase in the Bahamas' public-sector debt over the past fiscal year came from borrowing by government agencies and business enterprises, much of it tied to major utility transactions.

Opposition financial spokesman Kwasi Thompson has raised concerns about the amount of funds borrowed over the last fiscal year, revealed in the latest Public Debt Statistical Bulletin.

Mr Thompson questioned whether Bahamians are seeing sufficient value from the additional borrowing, arguing that the government's debt accumulation has not been matched by improvements in public services.

The Ministry of Finance's June 2026 bulletin shows public-sector debt rising by $1.276bn, or 9.5 percent, to $14.697bn at the end of the 2025/26 fiscal year. Central Government's financing activities accounted for 54.6 percent of the increase, while new government-guaranteed and direct credit facilities for agencies and government business enterprises (GBEs) accounted for the remaining 45.4 percent.

Mr Thompson said the latest figures should concern Bahamians, pointing to the roughly $1.3bn increase in obligations ultimately carried by taxpayers.

"This massive over $1bn ramp up in the debt happened during the same period when the government had promised a $75m surplus," he said.

"That surplus should have meant a reduction in debt. And yet, Bahamians are simply not seeing value for money."

A significant portion of the increase in agency and GBE borrowing was linked to the government's utility transactions.

Debt held by agencies and GBEs reached $2.23bn at end-June 2026, up $579.1m, or 35.1 percent, from the previous fiscal year.

The bulletin said the increase included financing obtained by Grand Bahamas Energy Company (GBEC) for its acquisition of Grand Bahama Power Company (GBPC).

GBEC secured US$150m in external financing for the acquisition, while a further US$50m was secured from a domestic financial institution, bringing financing for the share purchase transaction to $200m.

GBEC also secured an $80m loan facility for GBPC capital expenditure and working capital, while approximately $131.8m represented legacy commercial debt of the recently acquired power company.

The debt increase also reflected US$50m in financing provided to WSCDesalCo, the special purpose vehicle established to acquire, upgrade and expand Family Island water production operations.

Government-guaranteed debt also more than doubled over the year, reaching $694.1m at end-June 2026, compared with $321.7m at the end of FY2024/25. The bulletin said the increase reflected guarantees approved by Parliament for new GBEC and WSCDesalCo borrowing, as well as drawings and enhancements on existing facilities.

Mr Thompson said the scale of the increase should be viewed against the services Bahamians receive in return.

"To understand the sheer size of $1.3 bn, it is equivalent to the cost of 26 schools at $50 m each, or $10,000 for 130,000 Bahamian households," he said.

"These are not spending proposals, but they demonstrate just how enormous $1.3 bn really is."

He argued that the increased debt should translate into improvements in electricity, healthcare, roads and other public services.

"With debt increasing on this scale, Bahamians should be seeing better electricity service, a better healthcare system, more improved roads and better public services throughout our islands," said Mr Thompson.

"Instead, too many Bahamians are paying more while seeing too little improvement."

Central Government debt itself increased by $696.9m, or 5.9 percent, to $12.466bn during the fiscal year. However, the Central Government debt-to-GDP ratio edged down to 70.7 percent from 70.9 percent, as economic growth outpaced the increase in net new borrowing.

Domestic Central Government debt accounted for much of that increase, rising $585.6m, or 9 percent, to $7.062bn. The increase included $532.6m in net T-Bill issuance and $143.7m in net domestic bond issuance, partly offset by $100.8m in commercial loan repayments.

Mr Thompson said the additional obligations would ultimately have to be repaid with public funds.

"This is the people's debt, and it will be the people's money that repays it," he said. "They deserve to see real and measurable value for the obligations being accumulated in their name."

"Government cannot continue piling billions onto the national debt while Bahamians struggle to identify the progress that should accompany borrowing on this scale."

He added: "$1.3 bn more in debt. The debt is easy to see. The value for money is much harder to find."