Commercial borrowing may be needed to complete airport — PM

KINGSTOWN, St. Vincent, Feb. 19, IWN — The government may have to do some commercial borrowing to source the US$80 million it hopes to raise to complete the international airport at Argyle in time for the 2013 completion target.

Prime Minister Dr. Ralph Gonsalves said he agrees with accountant, Brian Glasgow, that this may be a reality but added that his government will try to keep commercial borrowing to a minimum.

Glasgow, speaking at the First Citizens Investment Services 2013 Market Outlook seminar earlier this month, said the reality is that in addition to grants, concessionary loans, and land sales, commercial borrowing is needed to complete the EC$652 million project.

“That’s the way I want to do it. I mean through concessionary loans, I want to do it through land sales and I want to do it through grants,” Gonsalves said.

“There is one thing, which is missing there, equity also. Somebody wants to put in equity; say, they want to put in $20 million, an entity, a country, or an agency of a country want to put in some money out of this $80 million as equity.

“But we may not get it through those preferred measures. So, if we don’t get it through those preferred ways, we have to do some commercial borrowing,” said Gonsalves, who is Minister of Finance.

“I heard Brian Glasgow. He made the point correctly and I agree with him. We have to do as little commercial borrowing as possible, which is what we have been doing,” the Prime Minister said.



4 thoughts on “Commercial borrowing may be needed to complete airport — PM

  1. How about the coalition of the willing, how about Gonsalves statement via Julian Francis that the airport would cost us nothing and would create no debts.

    How about in the early days when Eustace asked how Gonsalves would fund the airport, he refused to answer his questions. Gonsalves indicated that his coalition was a personal thing and their help is only available to him.

    Gonsalves told us that the work carried out by the Cubans at the airport site, and the wages for that work would be paid for by the Venezuelans. That turned out either to be a reneged deal by the Venezuelans, or a lie on the part of Gonsalves.

    The Cubans have drawn multi millions from our ailing economy, boosting their own economy. All I suspect because Gonsalves feels good about his political leanings when he supports Cuba financially.

    We were led to believe that there would be no loans, there would be no borrowing, no debts. All the plant and machinery to be supplied free by Venezuela, turns out the majority of the plant and machinery we have had to buy, borrowing huge sums to do so. All the cement would be a gift from Mexico, all the Tarmac would be a gift from Trinidad and Tobago. LIES, LIES, LIES.

    The ‘coalition of the willing’ turned out to be a ‘coalition of the unwilling’, and I believe the biggest bunch of lies and deception ever perpetrated on the Vincentian people.

    We have taken money from crap states such as Iran. Iran executes Christians for being Christians. They lock up and persecute Christians. Then when the UN tries to sanction them for their behaviour, SVG vote favourably for them at the UN. This is dirty money, its blood money. It has probably cursed the airport.

    Now we are being told that some or all of the $80 US million dollars required to finish the airport may have to be borrowed at commercial rates. The airport will never be able support itself, it will never make a profit, who will lend money against such a project.

    You will notice Gonsalves has slipped in the word equity, that is because a commercial borrower will have to come from a wheeler dealer type of lender, one that will set a high interest rate and also demand a chunk of the airport just to seal a deal.
    This is not a deal for a bank or traditional lender. What have we come to?

    To make the whole situation worse, we must keep in mind that up to 60 of the original land owners have not been paid for their land yet, years after it was forcibly taken from them.

    All you people in the Diaspora who have helped get us into this position, when you are dead and gone, will your children continue giving cash support. I doubt that very much, the whole debt will fall on the Vincentians living in St. Vincent, our offspring will be trying to pay off the debts for the next hundred years.

    Posted by peterbinose | February 19, 2013, 08:33
  2. It always amazes me that this man has the gaul to come and talk about borrowing to finish the airport. He’s the one who said that he had all the financing for it. And the sad state is, that even when done, it is going to be a drain on our country to keep it up to code.

    Posted by saneblane | February 19, 2013, 09:57
  3. SANEBLANE, it is good thing that you’re just a blogger and not an individual that one depends on to manage a company or govern a country, because base on your negativity, FAILURE would have been ASSURED.

    Posted by VINCYPOWA | February 19, 2013, 11:32
  4. VINCYPOWA, keep up the crap, its sealing your place in history as an anti-patriot, a Marxist collaborator, and someone who has helped purpetuate hate and spite in SVG.

    SANEBLANE, you keep telling the truth about our situation, word by word, line by line, thank you.

    Posted by peterbinose | February 20, 2013, 06:29

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