Prime Minister Gaston Browne has announced that government has reached an agreement with the Medical Benefits Scheme (MBS) to clear its debt to the institution.
Governments has amassed EC$250 million (US$92.5 million) in debt to MBS over the years.
“Even though Central Government has the right to pursue a set-off of these debts, we have agreed with the Board of MBS to a debt for asset swap to include Mount St. John Medical Centre and the government’s shares in the Cancer Centre. This will eliminate the debt in its entirety,” Browne said during the Budget presentation today.
The Prime Minister said his government is committed to paying contributions to both MBS and Social Security, and to ensuring that the people of Antigua and Barbuda are provided world-class living standards.
“We have already demonstrated this commitment with investments in medical equipment and supplies to the Mount St. John Medical Centre, with the successful eye care programme, and with scholarships to train doctors and nurses,” he said. “My government has not corruptly gambled MBS monies in failed investment schemes.”
MBS was established as a special fund to provide financial and other assistance towards the healthcare cost of the nation.
Browne said the Scheme is therefore “legally responsible for funding healthcare for all citizens and residents, with supplemental support from Central Government”.
“It was not intended to be an investment Fund to carry hundreds of millions in Government securities on its books. The Medical Benefits’ obligation, to fund healthcare has not been fully met, leaving Central Government to cover these costs, which far exceed the amounts payable to MBS,” he added.
The Prime Minister also announced that his government has agreed to establish a monthly standing order to cover contributions to MBS. A payment of EC$2.7 million (US$1 million) has been remitted to commence payments for 2016, a government statement said.(Caribbean 360)
Read more: http://www.caribbean360.com/business/antigua-government-agrees-on-asset-swap-with-mbs-to-wipe-off-debt#ixzz3yMyCUCzV
