Prime Minister Gaston Browne says Antigua and Barbuda is preparing to float a bond worth up to US$300 million to reduce its debt service burden and restructure high-interest domestic obligations, in what he described as a critical step toward improved fiscal sustainability.

Speaking on his regular Pointe FM programme on Saturday, Browne revealed that the country’s debt-to-GDP ratio has fallen dramatically under his administration—from 104% in 2014 to approximately 63% today—marking the lowest level in modern Antiguan history. However, he acknowledged that the country’s debt service ratio remains too high, currently absorbing more than 30% of government revenue.

“Our debt service ratio is in the region of $300 million a year,” Browne said. “When you consider that our revenue is in the region of $900 million to $1 billion, that’s over 30%, and that’s too high. We need to get it down to about 20% to create more fiscal space.”

Browne disclosed that the government is in advanced talks with international institutions, including Oppenheimer and the Development Bank of Latin America and the Caribbean (CAF), to raise the funds within the next 90 days. The aim is to refinance expensive domestic loans and settle outstanding debts with local creditors.

“We’ll propose a write-down [to domestic creditors], give them some cash up front, and term out the rest over time so they still earn interest,” he said. “We’re literally seeking to regularize all our domestic debts.”

Historical Loans Under Scrutiny

The Prime Minister also addressed legacy debts owed to members of the Paris Club, including longstanding loans from the United States and Brazil. He expressed reluctance to repay a US Exim Bank loan dating back to 1966, which funded the construction of the Deep Water Harbour, arguing it should have been the responsibility of the UK’s Colonial Office at the time.

“It’s still on the US Exim books, but we’ve never serviced it. Our position is that the US Trade Representative needs to come to the table and consider a write-off or a set-off for the WTO judgment,” Browne said.

He also confirmed that he has written to Brazilian President Luiz Inácio Lula da Silva requesting the forgiveness of interest and penalties on a loan from the 1980s—originally under US$5 million but now ballooned to over US$44 million. The loan was intended for the Deep Bay development project.

Browne criticized the Paris Club’s resistance to debt forgiveness, describing their policy as “bureaucratic and strict,” despite the fact that many of these debts have gone unpaid for decades.

“We feel hard pressed now to go and pick up half a billion dollars to pay out bad loans and undermine our development. We should be in a position to renegotiate,” he argued.

Fiscal Rebalancing Efforts Ongoing

Despite the challenges, Browne reiterated his government’s commitment to bringing all debts current—excluding the unresolved Paris Club loans—and described the forthcoming bond issue as a “strategic move” to ease fiscal pressure and stimulate further economic activity.

“If we can lower our debt service ratio, we’ll have the fiscal space to do more exciting stuff within the economy,” he added.