Local taxpayers fork out approximately $2.3 million per week on Bermuda’s multi-billion dollar debt service costs.

According to Finance Minister Curtis Dickinson, that translates to roughly $332,000 per day.

In his second Budget Statement delivered in the House last Friday, the Minister said Bermuda’s gross public debt is estimated to stand at $2.717 billion at the end of this fiscal year on March 31, 2020.

But debt service costs for the year ahead are projected to be $121.4 million.

According to the Minister of Finance, Curtis Dickinson, that translates to approximately $2.3 million per week or roughly $332,000 per day forked out by taxpayers on the island’s debt service costs.

The debt service costs will equate to approximately $2.3 million per week, or around $332,000 per day.

In his Budget Statement he said: “Debt service costs for 2019/20 are forecast to be $2.7 million above the estimate of $116.5 million.

“This is due to interest and facility fee costs in relation to the borrowing incurred to make good on the Caroline Bay guarantees by purchasing the interests of the Tranche B and C lenders for the project.

“Debt service costs for 2020/21 are projected at $121.4 million. Approximately $7.9 million of this expenditure is related to the Caroline Bay project.

“It is well recognised that interest rates are relatively low and the Ministry will therefore use the opportunity not only to finance the 2020/21 deficit but also to refinance the loan agreement arranged to facilitate the Caroline Bay obligations and to refinance existing more expensive government debt at a more favourable interest rate, therefore reducing debt service pressure on the budget.

“For the remainder of this fiscal year, the Government will continue to look for savings to offset the above-mentioned overages, and the Ministry of Finance will exercise prudent management of funds to ensure that we do not incur any additional borrowing,” he added.

“As at 31 March 2021, it is estimated that gross public debt will stand at $2.717 billion, and debt, net of the Sinking Fund, will be $2.678 billion, $72.4 million below the debt ceiling.”