Christmas Will Not Be Merry for Public Servants About to be Sent Home

Henderson Bovell

Henderson Bovell

Imagine! The house engulfed in flames, but the DLP assures: “don’t worry, we have the key to the front door!” The Government is now making the wild allegation that its ability to access a US$225M bridging loan in these tough economic times, is an indication that Barbados can still borrow on the International markets at reasonable rates.’. How can a “rolling-basis-interest-rate,” ‘EVER’ be a good thing?

Owen Arthur would describe this as: ‘a man jumping off the 80th floor of a building, without a parachute and when passing the 50th floor, is heard to say: “so far so good.” Let’s put this discussion in context. You will recall that the DLP was forced to withdraw its $500 million bond offer on the International Capital Market because (given the “JUNK BOND” status the DLP has earned for Barbados) respected and credible International Investors now find Jamaica’s debt more attractive than Barbados.’

Remember also, that the Central Bank of Barbados took-up US$375 million and essentially bought “JUNK:” with it, that is to say –  “DLP-JUNK-Bonds.” Then consider that since June, the DLP caused this country to lose over $400m in foreign reserves. With the foreign exchange cover causing panic, the DLP is “desperate” but it finds itself in a position of absolute weakness – having had four downgrade, including one to “JUNK,” as well as a negative credit rating.  Investors like Barbados but they have simply lost confidence in the DLP and with this much uncertainty (where all indicators are showing that things are deteriorating “fast”) a capital flight is inevitable!

Nobody is taking delight at the DLP’s misfortune! Because every time the DLP gets it wrong, (which is often and on everything) Barbadians pay with increased taxes and more pain.

What are the facts, as regards this US$225m bridging loan?  The DLP is incurring more debt, this time on the foreign exchange side but in circumstance were the economy continues to shrink and where the foreign exchange earning sectors are not producing.  This is a short-term loan, with a high interest rate and with strict conditions attached.  It would seem that as a condition of this loan, the Government must provide the bank, Credit Suisse AG, with a full Copy of the IMF staff’s report of its article 4 consultation with the IMF, scheduled for next week, and a schedule of the Government’s plan for implementation of any IMF recommendations.

It is not “you” – the people of Barbados, who the DLP feels it has to account to, even after promising (as part of its good governance charter) to let Barbadians know what it is doing on their behalf.  It is prepared to be accountable to foreign interests (Credit Suisse AG, and the IMF) not you who voted for it in February!  I asked recently if you can trust the DLP, can you?

Do you realise that an old lady selling fish in the Oistins Fish Market – can go into any Commercial Bank and get a loan on more favourable terms (perhaps with 10 to 15 years repayment period) than a DLP Government – once her business plan is in good order?

What are the terms? It would seem that $20 million has to be set aside in a separate account not accessible by the dems.  That may not be a bad thing! Nevertheless, this is short-term money and at a very high rate of interest.  Seems like the rate can be fixed but that would attract a fee, which the Government can hardly afford.  The only certainly here is that as long as the DLP is the Government – things will get much worse!  It is why in order to get that (take-it-or-leave-it) short-term loan for US$225m – even though at a high interest rate – Barbados has to report to ‘a Commercial Bank,’ what is contained in an Article 4 Consultation with the IMF and on top of that  – how it plans to implement any IMF recommendations. Talk about surrendering Barbados’ sovereignty!  But what would you expect from a Government that may be seriously considering selling Barbadian passports and citizenship, perhaps to get foreign exchange?  The shocker is that the US$225m bridging loan – comes with a rolling-basis-interest-rate.

Christmas is coming but so too is the IMF and it may be quite some time before a number of Barbadians can afford to eat a little ham, jug jug or turkey again.   And come January 2014, the DLP may have US225 million reasons why it will send home the same 10,000 Public Servants, it mentioned in those paid general election ads. If so, Christmas will be no more merry than the New Year likely to be happy for over 10,000 Barbadians and their families.

Nobody believes that the DLP has what is necessary to improve the economy and see it through to brighter days. That’s why the Bank seems to have opted to make provisions for further decline. They know – like you do (even if not willing to admit it) that the DLP’s inability, compounded by its propensity to conceive flawed policies; exercise poor judgment and make bad decisions – is the reason things will get worst.

Even the “Market Vendor” can get a loan at fixed interest rates but not the DLP. Their’s is a rolling-basis interest rate, take-it-or-leave-it! And yet, the DLP can somehow feel good and boast that Government’s ability to access a US$225M bridging loan in these tough economic times, is an indication that Barbados can still borrow on the International markets at reasonable rates.’

Barbados is a good country but it has a very weak Government, which nobody has confidence in but one which feels that it should be congratulated for earning a “JUNK BOND STATUS” downgrade for Barbados – an achievement that not even Erskine Sandiford (when at his lowest) was capable of!

136 thoughts on “Christmas Will Not Be Merry for Public Servants About to be Sent Home


  1. @Alvin give me a GOD DAMN break PLEASSSEEEE!!!!!. This is the second DLP administration since Barrow, this is the second time we are seeing SERIOUS economic trouble since 1987 and the second time the DLP is LYING to cover up that fact!!!!! Don’t try to tell me and the rest of Barbados that wunna trying to “prepare a wicket for the BLP” and all that other ignorance because it ain’t going to fly THIS time. THE DLP IS INCOMPETENT WHEN HANDLING THE ECONOMY PLAIN AND SIMPLE!!!!!!! The electorate try to give wunna jokers a chance even after the near 14 yrs bliss under Owen and this is the thanks wunna give THEM!!!!!!! Pure lies and sufferation!!!!!!
    Now when Fumble talks, i understand now why he used to be quiet because from hearing him speaking ALONE i know this country in serious trouble. Apart from quoting passages from the encyclopedia and the thesaurus what has Freundel done to distinguish himself as a PM, what legacy is he setting???. Fumble playing he smart by trying to diffuse focus from himself and letting Chris take all the heat, but anybody with a clue can see that the relationship between Fumble and Chris is far from happy


  2. @ Alvin
    No reasonable bloggers are contesting your point (and the DLP’s constant refrain) that the BLP play a BIG role in getting us to where we are.
    BUT SHIITE MAN!!! …..that is why we voted their asses out…and why the damn DLP. Is there….
    Wuh you think we voted for wunna because we like ugly people?

    So when wunna come into office and CONTINUE THE SAME shiite that the BLP was doing – on the excuse that wunna just copying….. What do you expect Bajans to think and say…?
    You ever heard of CHANGE?
    You heard about FOI?
    You remember Integrity legislation?
    You recall promises to cut out the lavish wasteful travel?
    You recall the concerns about the ML cars?

    Steupssss
    You could really follow fumble’s lead and at least STFU…

    ps – STFU (Stop Talking Foolishness Unlimited) 🙂


  3. Bush tea u are a two faced side winding hypocrite. Your only response to peoples comments isto disarmed them by use of combative and insulting tactics. Which now have become your signature response. You have more than occasionaly say what alvin eluded to in reference to the BLP having a role in the demise of the economy now you get here calling other peoples name on the similar comments which you have used mutiple times about the BLP.The fact is that the DLP never promised any one a quick and easy fix


    • During the last elections the DLP and Stuart stated no layoffs in the public sector will occur now we are hearing it is being discussed by Cabinet. BU sources confirm that layoffs are imminent. In the mean time the investment confidence of a nation remains low.


  4. Can you actually read ac?
    NO ONE DISPUTES that the BLP played a BIG role in our current dilemma…. That is why we voted them out.

    Now what are these current jokers doing that is DIFFERENT?
    What steps have they taken to KEEP the promises they made?

    Why don’t you just hush?
    What happened to CCC…? He retired and left you in charge of popaganda? 🙂


  5. I donot expect u to see any steps even with the introduction of univesrsity fees on a small scale however a step inthe right direction as an effor u are anti every thing except your reform of burning everything to the ground and putting your front man Caswell in charge of rebuikding… the economy did not get to this point overnight and finding all the right solutions would take time IOne must give credit where due


  6. @DLP (formerly…) When I was very young, I used to go to seeDracula movies. One of the ways of getting rid of the vampire was for the window to be opened to let the light in to shine on him.
    That is why you people are writhing like people in the throes of death. Whenever the light is shined on your actions and activities, and they are not intimidated by your mouthings, cursings, disinformation or propaganda, your arguments are shown up for what they are. The truth is there fore all to see. The reason you lost the election is because the majority of th electorate were able to see the true you through the artificial fog you tried to blow in their faces. When you are playing poker you have to use the cards you are dealt to finish the game.
    The DLP is using the cards they have been dealt. They, like anyone else, will make errors sometimes, and make the wrong bets, but the important thing is that THEY ARE STILL IN THE GAME. I am sure they will see it through, especially since there are more cards on the table to be dealt. This is not a T20 game, it is more in the line of a Test match. Be patient each day brings things closer to success.
    @Bushie, Do you expect things to be completed in a short time? Have you had a look for instance, at the plans for the Sugar Point Cruise Terminal? Are you aware of the effect this project will have on Cruise Tourism? Are you aware that this project has a big input by Royal Caribbean Cruises who plan to do a lot of home porting for its ships here, and the purpose of the terminal and piers would be to accomodate the largest cruise ships? Do you think an undertaking like that could be brought to completion in four short years, from conception to completion? I don’t know about you , but as an example, since I like to be informed on anything I write about, I went and had a look at the Environmental impact report (Social), as well as the presentations made by the engineers on the project and that of Barbados Port Inc. Those studies took a couple of years to be completed, including all the research that went into these studies, including visits to the testing facilities for effect of tides, wind, currents etc. on scale models, at their testing facilities in Canada. These were extremely detailed. The study showed for instance that the outflow facilities for the Bridgetown Sewerage plant have to be relocated and shifted, and will require, considerable planning and action. I left the island before I had the opportunity to have a look at the other environmental impact studies, but I am closely monitoring the progress that Barbados Port Inc. makes in this project. By the way did you look at the size of the project? If you have not, I invite you to google it and see for yourself, and when you do give me your honest opinion.
    As a result this project would be expected to take at least five to six years to come to fruition. All the other projects are time consuming when ALL the details are taken into consideration. You, should have read what I said to Miller with respect to the part BARNUFO played in the introduction of Solar use in government buildings and schools. You would have seen the advertisements, some of them, for tenders to supply Solar energy to these places. The coming into fruition of all these projects cannot be accomplished in six months or thereabouts; especialy when the government is in straightened financial circumstances.
    As a result a reasonable person cannot then conclude that the government is doing nothing.
    I take you to the Motto of BU, that ends with …”and the good that I can do.” The attempted manipulation of the people by BLP apologists, who allow their political ego to get in the way of honesty and fairness, as well as truth, is a “wrong that needs assistance” and I will always do what I can, as far as I know, to put the truth in the forefront.
    It is thus unreasonable to expect the type of results you expect any time within that period. BE PATIENT!!!


  7. RE
    Colonel Buggy | December 4, 2013 at 10:19 PM |
    The Prime Minister is a great man, deserving the honour of a statue replacing that of the Lord Admiral Nelson. The French could not bring Barbados to its knees. Neither the Dutch, Spanish ,Danes and all the other European war machines which took turns in capturing, and then loosing control of all the other islands throughout the Caribbean, in the preceding centuries..
    In one fell swoop, Mr Stuart and his marauders has brought Barbados to its knees.

    THIS POST IS IN THE TOP DRAWER


  8. Raising taxes on those with higher incomes doesn’t reduce the income disparity — the high earners will still earn most of the income, it is just taxed at a higher rate which will encourage the development of creative schemes to legally avoid paying those taxes. The sheep, after all, do not necessarily want to be shorn.

    What reduces the income disparity is enabling those who earn less to earn more. The actions that lead to that outcome are superior education and providing capital for those interested in starting new enterprises. Aside from a few outliers in finance and the entertainment professions and sports, the majority of high earners are in highly skilled professions (which require extensive education) and business owners.

    Therefore, it seems only logical for the government to pursue policies that encourage and nurture these endeavours. A few more dollars per hour to work at a cash register, stock shelves, or flip burgers will not make a dent in anyone’s ability to move up the income ladder or secure that possibility for their children.


  9. Barbadians: Paying a High Price For DLP’s Recklessness & Fatted Calf Programmes

    It has already caused Barbados to be downgraded to “JUNK” and to have a negative credit rating. That does not happen so easy, unless a Government is seriously incompetent!

    Compounded by the lost of consumer and investor confidence – this DLP Government is broke and broken and finds itself in the awkward and weak position of only being able to get short-tern credit, with high interest rate.

    Even when it borrows, it is not doing so to build productive capacity but to pay current bills: a highly dangerous and un-sustainable practice. The DLP has therefore become, a cost overrun; a serious burden to the taxpayers and essentially – a Government Barbados can no longer afford.

    The DLP simply lacks the capacity to add anything of value to the social and economic development and advancement of Barbados or the Caribbean and is therefore taking a monthly salary, it really cannot justify.

    It is totally unacceptable that the country should now be called upon by a Government that has been reckless and arrogant – to make sacrifices and pay such a high price for the DLP’s political programmes a.k.a its fatted calf doctrine, when it was warned from the start that the path it was pursuing, was madness. This has to be an abuse of power.

    Why should the DLP do crap and Barbadians pay or be the ones punished? Essentially, Barbados is being terrorised and harassed by an extremely large DLP Cabinet, which cannot even justify its pay or why it should be the Government! And, all because of a fatted calf doctrine and a belief by the DLP – that the resources of Barbados are their’s to shared among dems!

    What the DLP is doing to Barbados, is a shocking abuse of power. Even after losing the moral authority to govern – the DLP is using power to force the country to pay for its recklessness and incompetence. Something has to be very wrong with that! That has to be a crime against the society!

    And to think that the country is in this perilously state because of DLP lies; deception; recklessness and incompetence. They distributed the fatted calf among themselves and now the country must pay for that recklessness, when their passports should be seised.

    Just imagine! Ten million dollars to a company that was said to have been “sound,” “well-managed” and “well-regulated.”

    For fourteen years (as service to Barbados) Board Chairmen and Members were delighted to accept the same stipend – under the BLP. Up came the DLP and even before driving a stroke – significant increased the amount paid, as part of it fatted calf philosophy.
    Then there is Constituency Councils where $30m goes annually to dems, to be given to dems and to get people to vote for dems.

    Summer camps is a gimmick to funnel taxpayers money to dems who are either engaged as camp counsellors or as Caterers.

    The Political Football is an on-going attempt to Worship Thompson and to secure a segment of the youth vote and “the boys on the blocks,” again using state funds.

    One of the first things the DLP said on becoming the Government, was that engaging consultants would be a thing of the pass and yet, the DLP has legislated the engagement of Consultants under the Constituency Council Act. Perhaps for no other reason than to advise the DLP how to get Barbados downgraded to “junk!”

    The free bus rides, is simply state funds being used as “political-hush-money” – to buy political support but to also implicate people into being accomplice to the DLP fatted calf doctrine.

    Most ugly – is the engagement of over 4,000 in the Public Service by STEALTH, as part of its fatted calf for dems programme, despite knowing that the DLP had already forced the economy into recession. Imagine, 4.000 people employed by stealth; with nothing to do and no money to pay them and despite the foreseeable outcome that they were likely to put those engaged legitimately, at risk and under unnecessary stress.

    The Government was not being called upon to provide any additional services because non-national were rounded-up in the dead of the night and deported. There was no need to engage an additional 4,000 people in the public service, except that there are dems and thought by the DLP Government – to be entitled to a serving of the fatted calf.

    The DLP introduced a political programme to benefit dems only, but the entire country must now suffer and be disadvantaged so that dems can continue to benefit from the fatted calf. It explains the attempt to displace people who are working legitimately in the Public Service before 2008 and replace them with dems, for no other reason, than to satisfy a belief that the fatted calf or every assets Barbados has: whether land, NHC units, jobs, permits, government grants and loans – are for dems, as part of the fatted calf.

    Barbadians will now have to pay a high price for the DLP’s recklessness; its arrogance and as a result of its Fatted Calf Programmes.


  10. Why is it when I talk to DLP supporters I feel like the boy in the Emperor’s new clothes? They saying everything is alright but all I can see is gross incompetence. I talking about reality and Alvin talking about vampire movies. Well you right to talk about Dracula because this DLP govt is like a 5 yr now looking like a 10yr horror movie that I can’t get away from


  11. the horror of all horrors a Damming HEADLINE that did NOT come TRUE

    Christmas Will Not Be Merry for Public Servants About to be Sent Home

    Bovell you are the symbol of a political propagandist gas bag blowing plenty hot air.


  12. @ ac | December 6, 2013 at 7:21 PM |

    Even though the PM himself is NOT ‘optimistic’ you ac are still refusing to face the action of “Last Resort”. No one (other than you) has said thousands of public sector workers will be sent home before Xmas. They will certainly be deemed as “excess for fiscal requirements” come January 2014.

    The die is cast and that is why the union bosses are so tight-lipped about in order not to create a scene of emotional meltdown on the job before Xmas.
    Go ahead and call the miller the prophet of doom and gloom. At least he has been joined in the room of reality by many including, your idol the Fumbling Goon.


  13. “During the last elections the DLP and Stuart stated no layoffs in the public sector will occur now we are hearing it is being discussed by Cabinet. ”

    but what is really unbelievable is Mr Stuart’s remarks that he did not know where this ‘no-layoffs’ in the public sector came from and more unbelievable that it has not evoked comment from Miler who has always questioned Mr Stuart’s penchant for distorting the truth.


    • Was it not stated by the PM a couple months ago that he asked his ministers to search its heads to find unallocated budget to prevent the sending home of public workers?


  14. ac
    If you are made aware that in the New Year there is every likelihood that your job might be on line,don’t you think it would affect your enjoying the yuletide season,not knowing how in good bajan parlance if ‘you can make ends meet’come 2014.On that basis then the headline referred to makes sense.


  15. So after all the public workers will have a merry Xmas what was so asinine about the article is that itbrought out the madness and euophoria as if The BLP were begin handed a Reward. one of last resort.


  16. The Boldness of the headline” Christmas Will Not Be Merry for Public Servants About to be Sent Home” is enough to make one shiver in their boots it is this kind of political rhetoric that cause the BLP to lose the last election, Haven’t the BLP malcontent learned anything from their unwise remarks, Political diatribe is political suicide . PM Stuart said a few days ago that he had issued no such statement ,however his comment of “last resort: ” is being interpreted by the yardfowls as a confirmation of the above headline.


  17. It is official 6,000 public workers will be sent packing by the end of financial year.. Approximately 500 teachers will be among the numbers. This was what they voted for.


  18. @Bagjuice
    Get serious, this 6,000 will not bring about fiscal consolidation but fiscal destruction. Avoid the extremes, please!


  19. @Bu and Chaucer. This is no joking matter. Barbados is too small for any secrets to be held for any length of time. Someone will talk. Things real,real brow………n. Do’nt mind Dennis Clarke and Walter Maloney and the NUPW by extension parading and blowing ‘hot’ and ‘cold’ fumes. They are only keeping noise to give the impression that they are doing something. The two gentlemen mentioned above were shocked when Fruendel told them at the meeting they had recently that this is it. People will have to go..The die is cast.The long delay of the inevitable is finally here. The letters are already prepared to be released on first working day in January 2014.


  20. Bag a juice your are one of a kind alowlife dirt bag. If yu say is so true why doon.y u put your birth name on that comment.just a empty gutless bag of sour juice


  21. Cool it ac.cool it, don’t get so hot under the collar. There is a good old Bajan saying which says that: You can hide and buy land, but you can’t hide and work it. Let’s wait and see.


  22. Good Day.

    Are you looking for a business loan,personal loan,home loan, etc..OR Were
    you refused a loan by a bank or any financial institution for one or more
    reasons.You are in the right place for your loan solutions!I am a
    private lender,I grant loans to companies and
    individuals at a low and affordable interest rate of 3%. Interested?
    Contact us for the
    follow up processing of the loan and transfer within 48 hours;

    APPLICATION DETAILS
    Name
    Date of birth :
    Gender:
    Marital status:
    Address:
    City:
    Country:
    Phone:
    Loan Amount:
    Loan Duration :
    Net monthly income.
    contact email, cimaloan308@hotmail.com

The blogmaster dares you to join the discussion.