Our debt: six scary facts

FACT ONE: In 2003, the annual Interest Cost plus Sinking Fund contribution to service the Public Debt was $11,400,000. In 2013, just the annual interest cost alone will be $165,000,000 – fourteen times higher

TWO: When the Seventh Minister for Finance took office, gross Public Debt was reported as $162,341,969 ($162.3m). Nine years later when the Seventh Minister for Finance was booted out of office, gross Public Debt was $1,533,000,000 ($1.533bn). The Eighth Minister for Finance will soon raise gross Public Debt another $800,000,000 ($800m) to $2,333,000,000 ($2.333bn)

THREE: In 2004, out of every $100 of Government revenue, $1.60 went to cover Public Debt Service Costs. In 2013, out of every $100 of revenue, $15.00 goes to cover those Public Debt Service Costs.

FOUR: In 2003, of every $100 spent by Government, nothing was borrowed. In 2013, of every $100 spent by Government, $31.00 is being borrowed.

FIVE: In 2004, of every $100 of Government revenue, $49 was re-spent on Personnel Costs; $1.60 on Debt Service; and $49.40 on Operations. In 2013, of every $100 of Government revenue, $67.00 is being re-spent on Personnel Costs and $15.00 on Debt Service. Only $18 is left for Operations (which is why Government borrows…).

SIX: Senior Notes for $80,000,000 and $100,000,000 are due and payable in May and November 2019. The (July 2010) $500,000,000 bond issue is due July 2020. The (June 2012) $475,000,000 bond is due June 2022. That’s $180m + $500m + $475m = $1.155bn of Notes and Bonds to be paid off in the three years between May 2019 and June 2022.

No Sinking Fund contributions will be made between 2013 and 2017.

By 2022, those $1.155bn worth of commitments cannot be paid off.

FACTS. No spin. No lies.