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  by pltm
• Sep 30, 2016
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(PLTM) - The government had drawn down $5M from the $25M line of credit from CIBC FirstCaribbean International Bank, but within days realized that they did not need it, returning the monies to the bank. This came to light during the recent sitting of the House of Assembly.

Premier and Finance Minister, Hon. Dr. Orlando Smith in response to questions from the Opposition, said that government now has access to the $25M. He said that they had drawn down $5M from it to pay some bills, but then realized that Treasury had sufficient monies.

"We have not utilized any funds from the $25M credit facility established through CIBC to date. $5M was drawn down from the facility, but this draw down was paid back within a few days as the Treasury has been able to reduce it's payable obligation through existing revenue," the Premier said.

When asked what the $5M was needed for, the Premier said, "Of course I would not have the details of what was drawn down; it was to meet the current expenses, but then we realized that it was not necessary and so it was paid back at that time."

Opposition Leader, Hon. Julian Fraser then asked the Premier, if government was able to pay back the $5M, then why is the Treasury not paying its bills on time.

"There are many factors which could account for bills not being paid on time, but I can tell you right now that in the Treasury all bills have been paid up to 30 days, in 30 days," Premier Smith said.

"I am not satisfied that 30 days is the turnaround period," Hon. Fraser commented.

Members of the Opposition have alleged that the line of credit is a clear indication that the government is broke. However, Premier Smith has insisted that it is to ensure that small businesses are paid on time.

Government took a Motion back to the House of Assembly last week to make adjustments to the fees for the line of credit. The Motion was subsequently approved.

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