Straughn: $5bn borrowing ceiling doesn’t mean extra debt

D oubling Barbados’ special loans ceiling to $5bn does not mean the country has taken on another $2. 5bn in debt, Finance Minister Ryan Straughn has sought to clarify. In a statement following Parliament’s approval of the Special Loans (Amendment) Bill, 2026 , the minister said the higher limit was needed to replace approximately $1. 2 billion in existing debt with cheaper financing, potentially saving $320m over time for healthcare. He said: “We are working to replace about $1. 2bn of existing debt with financing on better terms. We expect this could save the country approximately $320m over time, once the arrangements are finalised. ” The previous $2. 5bn ceiling did not leave enough room for the replacement loans, which must be taken out under the Special Loans Act, he said.

The higher limit would accommodate the proposed refinancing and allow the government to pursue similar savings in future without amending the law each time, he added. Straughn compared the arrangement to a family refinancing its mortgage: “Think about a family paying a mortgage. If that family can get a lower interest rate, they may be able to reduce what they pay every month. They still have a mortgage, but it costs them less. That is what we are doing for Barbados. ” The projected $320m represented savings accumulated through lower interest and other financing costs, rather than a new loan or an immediate cash payment, he stressed. Those savings would support mental health services, community healthcare and the prevention and treatment of chronic illnesses, he added. “This is about paying less on the debt we already have, so that more of our money goes to the care Barbadians need. That means more support for people living with diabetes and high blood pressure, stronger mental health services, and…