The Central Bank Of The Bahamas’ Contribution To The
2016-2017 Budget Communication
decline in the short-term (31-90 day) segment by $20.8 million (6.6%) to $292.2 million, with
(NPLs)—arrears in excess of 90 days and on which banks have stopped accruing interest—fell
marginally by $0.9 million (0.1%) to $905.8 million, while the relevant loan ratio steadied at
15.1%.
Despite the modest improvement in credit quality, banks maintained their conservative
posture, by increasing their total provisions for loan losses by $12.7 million (2.4%) to $543.1
Annex A
the corresponding ratio lower by 33 basis points at 4.9%. Similarly, non-performing loans
million. Consequently, the ratio of provisions to both total arrears and non-performing loans
rose by 1.9 and 1.5 percentage points to 45.3% and 60.0%, respectively.
NATIONAL DEBT
The Direct Charge on the Government grew by $312.7 million (5.6%) to $5,889.3
million in 2015, a slowdown from the $590.8 million (11.9%) expansion in the preceding year.
Bahamian dollar debt—at an estimated 71.7% of the total—expanded by $214.5 million (5.4%)
to $4,224.2 million, while the foreign currency component rose by $98.2 million (6.3%) to
$1,665.1 million.
Government’s contingent liabilities grew by $48.9 million (7.0%) to $748.3 million at
end-December, compared to a $98.2 million (16.3%) increase to $699.4 million in 2014, when
loan guarantees increased for the Public Hospital Authority, the Bahamas Electricity
Corporation and the Bahamas Water & Sewerage Corporation. As a result of these
developments, the expansion in the National Debt tapered to 5.8% ($361.6 million) from a
12.3% ($689.0 million) expansion in the prior period. At-end December, the National debt
stood at $6,637.6 million, approximately 75.0% of GDP3 and in comparison to a rate of 72.8%
recorded a year earlier.
During 2015, total public sector foreign currency debt advanced by $114.5 million
(4.7%) to $2,562.0 million, as new drawings of $117.6 million, outstripped amortization
payments of $45.8 million. In terms of the components, Government’s obligations—which
comprised 65.0% of the aggregate—rose by 6.3% ($98.2 million) to $1,665.1 million, while public
corporations’ liabilities increased by 1.9% ($16.4 million) to $896.9 million.
3
Based on Department of Statistics Nominal GDP estimates for 2015.
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2016/2017
DRAFT
ESTIMATES
OF REVENUE &
EXPENDITURE