Bahamas Seeking To Limit Debt Services Burden | RJR News

The Bahamas will this week seek to limit the debt servicing burden for taxpayers via an Inter-American Development Bank (IDB) guarantee that will underwrite most of its $385 million foreign currency bond issue.

Credit rating agency, Moody’s has given an ‘Aaa’ designation – the highest possible – to one of the two sovereign bond series that the government will issue this week because some $200 million is being underwritten by the IDB in return for the Bahamas blue economy reforms.

The guarantee, combined with Moody’s high credit rating for The Bahamas’ ‘series A’ bonds, should ensure that the Government is able to borrow the necessary foreign currency at a much lower interest rate than if it had to approach investors directly on the open market.

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