Prime Minister Gaston Browne says Antigua and Barbuda will have to borrow hundreds of millions of dollars to “ride out the COVID storm.”
In an address to the nation on Thursday, Browne said the global effects of COVID-19, had hit hit economy long before the virus reached the shores of Antigua and Barbuda.
He said because of this, Government’s revenues have reduced considerably over the last few weeks from cancelled cruise ships, cancelled airplane landings, and cancelled hotel bookings.
Browne, who is also finance minister predicts that the Treasury will be further depleted in the coming period, presenting the government with significant challenges to deliver the customary goods and services in all sectors of our community.
He announced that “there will have to be belt-tightening, as hard choices are made to tide the entire nation over this difficult period that we did not create but, from which we could not escape.”
The prime minister also announced that in addition to the previous interventions, “our government will borrow a few hundred million dollars, to cover us for as long as we can, but the efficacy on the economy will depend on how soon the world and our own country, can throw open its doors to normal economic activities.”
Additionally, he said the Antigua Public Utilities Authority will reduce electricity bills by 20 per cent, to bring relief to their customers and no one will be disconnected during the next 90 days.
Also as part of the COVID 19 stimulus, effective Monday, the price of petrol – that is diesel, and gasoline for fishermen – will be reduced by 20 per cent and the dollar barrel initiative will be reintroduced immediately for 90 days.
“Our government is encouraging increased investments in the construction sector to mitigate against the decline in tourism revenue and the unemployment from the closures. To this end, we will extend and expand the CABI initiative for a further year and increase the threshold to $500,000.
“We will also incentivize home renovation and expansion during this one-year period. As we continue monitor and assess the socioeconomic fallouts, additional relief measures will be introduced,” Browne said.
He added: “Our government, while seeking to keep the economy afloat, will never compromise the health of the nation to save the economy. We will continue to expand our health-care capacity to manage this existential threat facing our people.”
