Prime Minister Gaston Browne, who is also the country’s Finance Minister, has again returned to the highly political and divisive issue; the Social Security Debt controversy.
The matter came up for discussion last Saturday on the popular, Browne and Browne show on Point FM.
According to the prime minister several opposition figures, particularly Harold Lovell, had claimed that the UPP administration “never borrowed from Social Security.” PM Browne immediately addressed the statement. “I never said they borrowed,” he clarified. “But if you didn’t pay your contributions, that’s a form of borrowing. You’re using funds that belonged to the people.”
He then pulled up official records from the Director of Social Security to clarify the historical debt data. Displaying an Excel spreadsheet on the broadcast screen, Browne broke it down year by year.
In 2003, at the end of the Labour Party’s previous term, the government owed EC$366 million to the Antigua and Barbuda Social Security Board. During the UPP administration (2004–2013), that figure rose steadily:
- 2004–2009: Debt increased from EC$366M to EC$471M.
- 2010–2013: It climbed further to EC$538M, an increase of EC$172 million.
“They made one payment of about EC$36 million in 2013,” PM Browne said, “but apart from that, the debt kept growing.”
He explained that arrears, by definition, are equivalent to borrowing: “If you owe Social Security and use that money elsewhere, you’ve borrowed it — plain and simple. They left office owing EC$538 million.”
Under his administration, PM Browne continued, the government began reducing and restructuring the debt while making regular payments:
“We’ve paid over EC$208 million in cash to Social Security — twice what they (the UPP’s) paid during their 10 years. Yes, we added some arrears ourselves — about EC$87 million — but we’re now clearing that entirely.”
To further ensure stability, the prime minister shared details of a comprehensive refinancing proposal sent by the Ministry of Finance to the Social Security Board. The proposal — officially signed by Financial Secretary Rosanna Davis-Crump — outlines a 25-year debt consolidation plan designed to guarantee the long-term solvency of the system.
Key Components of the Proposal:
- Consolidation of Liabilities
All existing obligations — including the 2010 bond, the 2022 Development Bank bond, and all outstanding contributions through 2025 — will be merged into a single 25-year bond worth EC$437.8 million.
- Years 1–5: Interest-only payments at 3% (about EC$1.1M monthly)
- Years 6–10: Interest-only payments at 5% (about EC$1.8M monthly)
- Years 11–25: Principal plus interest payments
The government has requested that Social Security waive accrued past-due interest, simplifying the debt and providing predictable cash flows.
- Lump Sum Payment and Asset Assignment
The government will provide a cash injection of up to EC$75 million within the first 12 months to strengthen Social Security’s liquidity and support investment diversification.
Additionally, it will transfer valuable assets, including the Jolly Beach property, to bolster the institution’s financial base.
- Commitment to Timely Contributions
Browne reiterated that the government would make consistent and on-time contributions going forward, ensuring the sustainability of the fund without increasing contribution rates or the retirement age.
“This is about giving our pensioners and workers peace of mind,” PM Browne said. “We want Social Security to be sustainable without burdening citizens.”
He confirmed that technical teams from both entities are preparing a Memorandum of Agreement, with plans to implement the new structure by January 2026.
