In a landmark achievement for its national debt reduction strategy, the Caribbean nation of Antigua and Barbuda has slashed its outstanding outstanding loan obligations to China from over $300 million to roughly $120 million, the country’s Director General of Communications Maurice Merchant announced Thursday during the weekly post-Cabinet press briefing.
The debt update was included as a core component of the second-quarter fiscal performance report delivered to the Cabinet by senior finance ministry officials, who outlined the full context of the country’s evolving external debt portfolio. According to Merchant, the dramatic reduction in Chinese-backed debt directly reflects the success of the current administration’s deliberate fiscal management framework, backed by consistent post-recovery economic expansion, improved domestic revenue collection, and a disciplined commitment to meeting all scheduled debt repayments on time.
Merchant emphasized that the steep decline in outstanding Chinese-funded loans stands as one of the most meaningful milestones in the country’s ongoing public debt management program. The original Chinese financing supported many of Antigua and Barbuda’s largest and most transformative public infrastructure projects over recent decades, breaking down to $80 million allocated for the expansion of VC Bird International Airport, $20 million for the construction of the Sir Lester Bird Medical Centre, $55 million for national road infrastructure upgrades, and additional funding for the fifth berth development at the St. John’s Port redevelopment initiative.
In one of the most notable milestones from the debt reduction drive, the full loan for the Sir Lester Bird Medical Centre has now been completely repaid, a development Cabinet members received with high satisfaction. “Members further noted with great satisfaction that the loan associated with the Sir Lester Bird Medical Centre has been fully liquidated, representing another important milestone in the government’s debt reduction programme,” Merchant told reporters.
Cabinet collectively attributes the progress in lowering Chinese debt to intentional, prudent fiscal stewardship and the administration’s longstanding commitment to honoring its financial obligations in a timely manner. Finance officials told ministers that stronger customs revenue collections and broad improvements in overall government income have given the country the flexibility to aggressively pay down debt while still maintaining full funding for critical public services and ongoing capital development projects.
Beyond the immediate win of lower outstanding debt, the reduction of the country’s external debt burden is expected to strengthen Antigua and Barbuda’s overall fiscal position by opening up new fiscal space for future targeted investments. Ministers concluded that the lighter debt load will boost the country’s broader economic resilience, create more room to finance urgent national development priorities, and reinforce the country’s stable macroeconomic standing for long-term growth.
The debt announcement was just one section of the broader mid-year fiscal review delivered by finance ministry officials. The report also covered other key fiscal developments, including continued growth in customs revenue, ongoing progress in expenditure controls, and the government’s decision to keep domestic fuel prices unchanged even as global international energy costs climb.