The government is considering seeking a new US$100 million loan from China to finance renewable energy and expand housing across Antigua and Barbuda, Prime Minister Gaston Browne has announced.
Speaking on the Brown and Brown Show on Sunday, Browne said the proposal comes as the country’s debt-to-GDP ratio has fallen to about 62%, bringing it close to the international benchmark of 60%.
“We’re thinking that perhaps we should approach the PRC now for another loan of probably US$100 million,” Browne said.
He said approximately US$40 million would be allocated to the construction of a renewable energy plant, while the remaining US$60 million would be invested in housing.
“We can put US$60 million into housing because we seriously want to scale up the housing push and improve the housing stock, both here and in Barbuda,” Browne said.
The prime minister noted that the government is already using a US$20 million grant from China to construct 100 homes—50 in Bolans and 50 in Barbuda—but said far more housing is needed.
“Above and beyond that, we need thousands of homes and we have to scale up,” he said.
Browne said the administration intends to continue pursuing concessional financing for major development projects and praised China’s lending terms, noting that low interest rates have helped Antigua and Barbuda significantly reduce its debt.
He also disclosed that officials from the U.S. International Development Finance Corporation are expected to visit Antigua and Barbuda later this month to discuss possible financing opportunities.
“If they’re coming with a good offer, and for us a good offer must be long-term, at least 20 years, 2% interest, with a five-year moratorium—that is what we consider to be a good offer,” Browne said.
He added that the government would welcome financing from the United States if the terms are comparable to those offered by China.
“If they’re able to match the Chinese and we’re getting cheap money, we will borrow,” Browne said.
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