Browne identifies certain lenders and interest rate on US$100 million loan to be received by ABAA

Prime Minister Gaston Browne has finally identified the financial
institution from which his Administration will be borrowing US$100
million to fund work at the V.C. Bird International Airport and other
government projects.

Browne was pressed about it by Barbuda MP Trevor Walker during
a sitting of the Lower House on Tuesday, November 21.

The prime minister says that Oppenheimer, an investment bank and
the lead agent, has brought together a number of regional
institutions, including First Caribbean International Bank (FCIB).

According to Browne, the minister of finance, FCIB participated in
an initial loan of US$100 million that was granted under the United
Progressive Party (UPP) Administration.

He claims that FCIB and Credit Suisse financed that loan at a rate of
12.5 percent when, he says, interest rates were at a historic low of 2
percent.

Browne says this loan is meant to take the borrowing back up to
US$100 million since, he claims, the original loan has been paid
down significantly.

Further, he says that a few regional banks and at least one domestic
bank will provide the remaining loan amount.
The prime minister says the interest rate would be about 7.5 to 8
percent over an eight to 10-year period.

Walker also asked why the Government would be taking money
from the loan to fund non-related aviation projects – as was
revealed by the former chief executive officer of the Antigua and
Barbuda Airport Authority (ABAA), Euletta Francis, and confirmed
by the Cabinet. He also asked what these projects are.

Avoiding a direct answer, Browne sought to accuse the former
administration of diverting airport taxes that ordinarily would have
been paid into the Consolidated Fund.

He claims the Government wants those monies to be channeled to
the correct place to meet its borrowing requirements.

Browne says the Government has 180 days in which to take the loan
agreement before the Parliament for debate and approval, and this
will be done within the ambit of the Finance and Administration Act.