December 28, 2009
Re: Downgrading of Bahamas credit rating by Standard and Poor’s.

The recent announcement of the downgrading of the Bahamas credit rating by the highly respected international credit rating agency Standard and Poor’s should not have come as a surprise to anyone who understands the Bahamian economy and downward economic spiral we have experienced since the arrogant and clueless FNM government took office 2½ years ago.

In fact many in the country, including the opposition have warned the government of its reckless borrowing over the past 1 ½ years. The borrowing was not linked to any meaningful short or long term objective; did not increase our Gross domestic product; did not diversify our economy; did not reduce the cost of living; did not enhance the education of our people and certainly did not build or enhance any of our institutions.

Truth be told, the FNM government has borrowed and/or committed to borrow three quarters of a billion dollars in 2 ½ years and they have nothing meaningful to show for it. The FNM government must hang their heads in shame and take complete and absolute responsibility for the downgrade of the Bahamas sovereign credit rating.

As early as June 2008 during the Budget debate I first sounded the alarm and expressed concern about the level of FNM borrowing and in particular the foreign component of the debt. The FNM government in its usual “know it all” manner has failed to listen and through the downgrading of our credit rating has placed the country on the slippery slope towards the devaluation of the Bahamian Dollar.

As a result of the FNM’s incompetence and mismanagement of the Bahamian economy, debt repayment is now the single largest line item in the National Budget, having recently outstripped both the Ministry of Education and the Ministry of Health.

To stabilize and secure our country’s future financial standing, the Government must not engage in any further foreign currency borrowing. It must also move with a sense of urgency to develop a plan to reduce our national debt, diversify our economy and reduce our dependence on imported goods.

This is not the time for talk of “proven leadership” or “tested leadership”; this is the time for sound, strategic economic policies void of political rhetoric and smoke and mirrors.

As we start the New Year, I implore the government not to drop the ball again. It is time for the FNM government to prove to the Bahamian people in a tangible manner that they are navigating this financial crisis with “clarity of purpose”.

If they do not or cannot, then God help us all.