Regime answer to debt concerns

Bainimarama and Khaiyum know that there are widespread fears about their reckless borrowing so they have to respond. And what is their response? Lies. They contrast their low deficit over the past three years with higher deficits but ignore the fact that their debts have barely begun to be repaid. They had to beg the Indian Government to hold off on repayments for the botched mill refit. The Malaysian road debt has barely commenced repayment. One thing is for certain, the debt will last a lot longer than the roads that were built. A lot of the borrowings are by Government owned companies and so don’t show as Government spending but we know who picks up the tab if they can’t pay their bills. And if Fiji airways fails to fly, $200 million of FNPF savings go with it.

Fiji Times May 01, 2013 Modest deficits

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