Minister of Finance and Planning, Dr. the Hon. Peter Phillips, says the National Debt Exchange (NDX) is estimated to have reduced annual interest payments by $17 billion for the seven-year period from 2013/14 through to 2019/20.
The Minister was closing the Budget Debate on Wednesday, May 1, in the House of Representatives under the theme: ‘A New Direction For Hope And Expanding Opportunity’.
“The $17 billion reduction is with respect to the interest that would have been due in each year of the period starting 2013/14 under the pre-NDX bond terms. It should be noted that the reduction in 2013/2014 on the pre-NDX estimate is approximately $20.7 billion,” he said.
He pointed out that the Ministry has always used the correct comparison of pre-NDX costs of 2013/2014 and post NDX costs of 2013/2014 to arrive at the relevant savings.
“The reduction of $10 billion being referenced by the Opposition Spokesman on Finance is the difference between the post-NDX interest payments due in 2013/2014 and the actual interest payments made in 2012/2013. This was not the computation of savings,” he noted.
The NDX forms part of the overall fiscal programme of the Government to meet the requirements of the International Monetary Fund (IMF).
By Chris Patterson, JIS Reporter