Banker and Advisor to Government

What is the National Debt?

The National Debt is the total indebtedness of the Bahamas Government, including claims held by both foreign and local entities. It comprises two main components: Direct Charge and Contingent Liabilities.

Direct Charge refers to the total claims on the central government. Movements in the Direct Charge from one period to the next can be matched to the budget surplus (deficit) over the respective period. A budget surplus may be used to reduce the Direct Charge or build-up cash balances, while a budget deficit has the opposite effect.

Contingent Liabilities refer to claims on public corporations guaranteed by central government. They are included as part of the debt of The Bahamas Government, because they represent potential liabilities, i.e. in the event that a public corporation defaults on such debt or any part thereof, the Government is ultimately responsible for its repayment.

  1. What is the difference between a Treasury bill and a Government Bond?
  2. How are Treasury bill rates determined?
  3. How does the Treasury bill tender operate?
  4. How do I buy Bahamas Government Registered Stock?
  5. What if I needed to sell my Bahamas Government Registered Stock?
  6. What should I do if I've lost my Bahamas Government Registered Stock certificate?
  7. Can I use my Bahamas Government Registered Stock as collateral if I needed to get a loan?
  8. What is the National Debt?
  9. How has the National Debt changed over the past few years?

Available FAQs