Debt ceiling expanded for asphalt project
Last week 27 legislators voted in favor of raising the debt ceiling so that the government can lend an additional $235 million. Reports indicate that 13 legislators voted against raising the debt ceiling. The government will get the loan from the ExportImport Bank of China and will have paid back the money in 2033. The loan has a 5-year grace period and the first payment will be made on September 21, 2022 at an interest rate of 2%. Finance Minister Gillmore Hoefdraad shared this information with Parliament on Friday. The money will be used to finance the Dalian 4 Asphalt Project. Minister Hoefdraad strongly believes that the nation will be able to pay back the money. He explained that the state’s income will be enough to carry the loan. “Those are not issues that we are concerned about,” said Minister Hoefdraad. MP William Waidoe (PL) and other members of the opposition are strongly convinced that the government is using the loan as a tool to indirectly raise the debt ceiling.
The members of the coalition pointed out that “this is not true.” In the early stages of the meeting the coalition had made it clear that it would support the government’s intentions. The legislators from the National Democratic Party (NDP) and ABOP supported the modification while the one-man faction of the PALU refrained from voting. MP Cleon Gonsalves Jarvin de Ponte (PALU) pointed out that this must not be considered as a silent approval for the loan. He in fact strongly criticized the government and pointed out that “the government has not given us any guarantees whatsoever how it will meet the requirements for maintaining (economic) stability.” “The government’s attitude is not very hopeful. I wish it success with the implementation of the law,” said Gonsalves who added that he considers this as “giving the government a blank cheque.” MP Andre Misiekaba (NDP) strongly denied the accusation and pointed out that the law clearly describes the conditions for the loan. MP Amzad Abdoel (NDP) pointed out that the opposition members were hypocrites.