Barbados House Approves $5 Billion Borrowing Limit for Healthcare Debt Swap

Barbados will equip all nine polyclinics with basic diagnostic equipment within six to eight weeks, Health Minister Lisa Cummins said during Senate debate on the Special Loans Amendment Bill 2026. The upgrades, developed with PAHO, are meant to relieve pressure on Queen Elizabeth Hospital and strengthen primary care through urgent-care training and a greater focus on prevention.

Barbados’s House of Assembly has approved a bill to double the special loans limit to $5 billion, clearing the way for a $1.2 billion debt swap that should free about $320 million for healthcare. The funds will target chronic NCDs, mental health and childhood obesity, while also supporting wider debt management without new heavy taxes.

Government wants to raise its borrowing authority from $2.5 billion to $5 billion under the Special Loans (Amendment) Bill 2026, which was debated in the Lower House today. Finance Minister Ryan Straughn said the change is meant to create room to fund national priorities, while noting Barbados has significantly reduced its debt since 2018.

Barbados is seeking to free up about US$320 million through a proposed debt-for-social swap, with Finance Minister Ryan Straughn saying the funds would come from buying back Series B bonds. The money would support healthcare reforms, especially community-based care, non-communicable disease prevention and treatment, and mental health services, with added focus on children’s weight and health.

Senior Minister Kirk Humphrey said Barbados should look beyond traditional borrowing, pointing to debt-for-nature and debt-for-climate swaps that have freed up funds for national development. Minister Marsha Caddle said the country’s financial innovation is drawing international attention and could help Barbados secure new partnerships and financing tools.