This past week the rating agency Moody’s threatened to downgrade the Bahamas’ credit rating and ever since this announcement was made this government has been playing a very dangerously embarrassing ‘game’ in some silly attempt to convince the people of the Bahamas that they have ‘control’ of the situation; a lot doubt that they do and they may be right.

“Bahamas Facing Moody’s Downgrade Threat in Two Months” – The Tribune – May 4^th 2016

Excerpt from this article; “The Bahama faces the prospect of a fresh credit ratings downgrade within two months, after Moody’s was stunned by data showing two consecutive years of recession.

The Wall Street rating agency announced on Friday that it was placing the Bahamas ‘under review’ for a potential downgrade, due to both its unexpected economic contraction and further deterioration in the Government’s fiscal position.”

To listen to the words of the Prime Minister/Minister of Finance and to Mr. Michael Halkitis, State Minister for Finance, this cannot be happening because of the cutbacks in government spending but more importantly due to the tax reform through the introduction of Value-Added Tax (VAT), so maybe one of our government financial gurus can sort this matter out and ‘splain to the people what is happening.

Govt. not worried – Halkitis: Govt. knows what to do to prevent Moody’s downgrade” – The Nassau Guardian, July 5^th 2016

Excerpt from this article; “Minister of State for Finance, Michael Halkitis said yesterday that the government is not worried by an announcement by ratings agency Moody’s that is looking to downgrade the Bahamas’ credit rating within the next 60 days.

Halkitis said the Christie administration knows what to do address concerns raised by Moody’s, and is committed to doing it.

‘This is one of those things he said.

‘We think are at a point where we have stabilized things.  Our forecasts show that the debt-to-GDP ratio will begin to decline going into next year.”

Mr. Minister of State with responsibility for finance did you and your government not make these same promises and assurances when you did your first review of VAT and reported that it was exceeding all expectations?

Mr. Halkitis you claim that your government knows what to do to prevent a downgrade then why has this not been done?  When Standards & Poor’s downgraded our credit rating but Moody’s took a ‘wait and see’ approach due to the implementation of VAT and awaiting the outcome of the Baha Mar matter, why wasn’t ‘something’ done then?

Mr. Minister of State for finance when you say that you are not worried and you know what to do, do you plan on opening Baha Mar in the next 60 days?  Will this be on the list of promises that you will make to Moody’s as you sit down and ‘plead our case’?

It is indeed very troubling the nonchalant attitude that the government seems to have taken toward this very serious matter and Mr. Halkitis, while you say that you and your government are ‘not worried’ and claim that you and your government ‘knows what to do to address the concerns raised by Moody’s…”, interesting wording there by the way; it is painfully clear to the rest of us that the government does not know what to do, so the rest of us are very concerned.

But then this government always finds away to compound on it statements of utter nonsense, which you would have to intoxicated to believe in the first instance.

“Fire Moody’s if Bahamas is given downgrade” – The Tribune

Excerpt from this article; “Former State Minister of Finance James Smith said he would suggest that the government fire Moody’s if the rating agency follows through on its threat to downgrade this country’s credit rating.

Arguing that although the state of the country’s economy is relatively weak, Mr. Smith said many countries not under threat of a credit downgrade have worse performing economies or greater level of debt.” 

Seriously?  Are we as a country looking to progress or play to the lowest common denominator? 

The Progressive Liberal Party fails for one reason, it is within their nature.

END