Bahamas, while the government has once again created a major smokescreen and distraction ahead of a critical responsibility of theirs (the gaming bill smokescreen), Bahamians need to get focused because the 2013/2014 fiscal budget to be introduced in May will be the one against which our second downgrade by Wall Street will occur.
How do I know? Wall Street already told us – unless debt levels drop, revenue increases and a realistic debt reduction plan is introduced, we will be downgraded again. The downgrade against the government’s 2012/2013 budget was in November. Wall Street reviews us again in September of this year. And since the government has announced it will be borrowing again, it has not cut spending, and since it has now embarked on a politically and personally-motivated work permit campaign that has threatened foreign direct investment, it is a certainty that Wall Street will slash our ratings again.
What does that mean for you and me? Remember that precious Bahamian dollar we like to boast about in the Caribbean as being on par with the US dollar? Just how long do you think we will be able to boast of that with credit downgrades, consistent borrowing Bills within weeks of each other and stagnation of foreign direct investment?