Fri | Dec 2, 2016

Government incurs billions for debt-ridden entities

Published:Wednesday | September 10, 2014 | 3:40 PM

The Government is to withdraw J$2.89 billion from the Consolidated Fund to help with the divestment of the Wallenford Coffee Company.



The money is to be paid over the PetroCaribe Development Fund, the National Export-Import Bank, and the European Investment Bank.



A further US$237.1 million is to be taken from the Consolidated Fund to go to the PetroCaribe Development Fund to cover costs associated with Clarendon Alumina Partners.



The House of Representatives yesterday passed the two resolutions, which will allow for the payment of the funds to the PetroCaribe Development Fund.



Finance Minister, Dr Peter Phillips said the move will see the government taking on the debts.



Phillips said the exercise is being undertaken to facilitate the sale of Wallenford as part of the privatisation process.



However, the opposition spokesman on finance, Audley Shaw, said the taking on of the debts brings into sharp focus the fact that the Government has been using the PetroCaribe Development Fund for bailouts instead of actual development projects.



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