NASSAU, Bahamas (CMC) – The government of the Bahamas has announced plans to reduce the economic effects of COVID-19, by providing initiatives targeted at public health and safety, job protection and social and economic support for households and businesses.

This was disclosed by the Minister of State in the finance ministry J Kwasi Thompson.

“The levels of direct support required by the government to save lives and support commercial and economic activity to the end of October has been unprecedented. The Government has kept its promise that this unprecedented crisis would be met with an unprecedented response,” Thompson said as he presented the fiscal strategy report in the Senate on Wednesday.

“In the aggregate, the Government has spent over $177 million to the end of October 2020. This value does not include the additional commitment of direct funding in excess of US$60 million to support our essential unemployment programmes, food assistance programmes and other efforts from November into the New Year.”

He stated that for the nine-month period from March to October 2020, the government provided support in the areas of public health, sanitisation, food support programmes and the small business community.

Thompson noted that in addition to the $177 million of COVID spend, the Government committed to extend the food assistance programme to end-March 2021; it committed $45 million to extend the Government’s unemployment assistance programme to the end of December, and more recently the prime minister announced the Cabinet’s commitment to continue the programme through end-January.

He explained that in short, the Government has met an unprecedented economic calamity with an unprecedented set of policy responses that has provided hundreds of millions of dollars in support to affected citizens and businesses.

“I hasten to add as well that the government’s announced and deliberate strategy to maintain healthy foreign currencies reserves to ensure the viability of the Bahamian dollar, has been an unqualified success.”

“Senators would recall that during the budget exercise, the then minister of finance stated that the government would shift to foreign sources of borrowing to support the Central Bank’s reserve holdings. Even with that strategy, the projection back in April was that by end of December, our reserves would fall to a level of $1 billion, much lower than at the start of the pandemic, but still sufficient for the country to meet its regular ongoing import bills.”

He added, “Thus, I am pleased to cast aside any concern regarding the threat of devaluation of the Bahamian dollar. Despite the economic trauma of the last nine or so months, the prudent management by this administration has ensured that the Bahamian dollar remains as strong and as secure today as it was before the onset of this most devastating economic setback.”