The credit rating downgrade to CCC+/C by S&P Global of Barbados has come as no surprise to sensible Barbadians. When former Governor of the Central Bank DeLisle Worrell distanced himself recently from government policy of printing money, it confirmed that the rats were jumping ship.
The government has been unable to jumpstart the economy since it was entrusted to them in 2008. It is time for the private sector to turn its back on the government.
Read the S&P Global Report:
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Here is a most important part of S&P’s statement:
The high level of central bank financing underscores the challenges associated
with timely corrective fiscal policy actions. The government plans to present
the 2017-2018 budget in the coming month. While it seemingly aims to rely on
increased recourse to asset sales to fund the deficit, in our view, the
prospects for deeper expenditure or revenue adjustment are uncertain,
underscored by the poor track record of execution. This comes as the country
moves into an electoral cycle, with parliamentary elections due by February
2018.
Maybe now you all can CCCCCCCCCC what We have been telling you and talking about,
Jump Start What? How in the Hell do you Jump Start Fraud, Massive Land Fraud and laundering of money and land,
How much lower wil be go before these idiots admit that they are incompetent and cannot get this country managed.
It is time for the dlp to put Barbados first instead of thinking of themselves and that they can win a third term.
dont worry bitter medicine coming soon before the bell rings ,, enjoy
At least they are quick out of the blocks with a statement and it is less aggressive.
#JAs
“dont worry bitter medicine coming soon before the bell rings ,, enjoy”….hopefully ac it would be 16 cyanide pills…for the Gov’t to take
Prodigal Son March 3, 2017 at 7:27 PM # @@@
All the way to F, F Fraud,, F ,=Fail, F for=MOF, F= Fools, F= False ,, F =Fumble , F= Freundel
We know they know what to do , Pelt MIA under the BUS with OWEN to start, The EXPOSE Sir Richard L Chelteham, Sir COW, Sir David Simmons, Then we can Sir Henry and Sir Beckles for false and misleading History books, Remove His ass from UWI.
Now you can see how all the Sir “s” in Barbados were rewarded with PIMP titles.
A full forensic Audit of the land tax and land registry of Barbados, Restore the Archives and Library to its former Glory,
Get a new DPP and COP and charge these names to start,
Vote CUP and get back to the Peoples Business CUP CoUP
Another interesting extract:-
Furthermore, one-off revenues from the sale of the Barbados National
Terminal Company are still pending after initially expected to materialize a
year ago. This demonstrates policy inaction and prospects for slow progress on
asset sales. The streamlining of state-owned enterprise finances is behind
schedule, and their management continues to weigh on Barbados’ fiscal profile.
Finally, delays in complying with terms and requirements for official
borrowing (from multilateral agencies, for example) have contributed to delays
in external disbursements, which are important to bolster international
reserves. In sum, the various failures to respond in a timely fashion to
mitigate fiscal and financial pressures further weigh on our view of Barbados’
institutional and policy effectiveness.
no quarrel here the correct and proper thing to do as i stated in an earlier response that govt should have an impromptu press conference to address the recent down grades .
However in keeping with current speak coming from OSA my comment was a repeat of what he stated to be a solution jas,, although unfortunately he might be right since govt have put off proceeding on that path for the past eight years because of having to face heavy push back by the same opposition and unions who up to present time in face of adversity state that govt would have a fight on their hands if bitter medicine adversely impact public workers
The government selling assets to pay current expenditures is like selling your car to buy groceries while still taking your annual vacation.
If the government hired some accountants on a bounty hunter basis to go after tax evaders and VAT evaders they would collect so much money your head would spin.
barbadians want to have their cake an eat it too, barbadians want to have country finances solved while expecting govt to carry all the burden of health cost !education! fix infrastructure! pay public servants ! pay all bills that affect the running of a country on a shoe string budget and keep expenditure down while making shore that the deficit is at its maximum level
Dem can’t possibly be serious about that 10% this year especially after this downgrade?
Barbados had two agreements with the IMF in the past (1984 and 1992). Those two agreements were standby. Because of deep structural issue with the economy today, nothing less than an EFF (extend fund facility) will do. As such, a voluntary devaluation is a must. However, we could sign up for a standby, and with some luck and prayer buy some time for stability to return.
GAME NEARLY OVER.
We are here: CCC+ substantial risk
Next steps:
CCC extremly speculative
CCC-, CC, C in default with little prospect for recovery
SD, D in default
We come from: B-: one notch above CCC+
I translate AC for you. I present the MANIFESTO for the 2018 elections:
“education!” We already pay for tertiary education. From next year on, we will also pay for secondary education. How much? 1,000 BBD/year, 5000 BBD/year?
“fix infrastructure” Expect even more potholes. No water anymore for the population outside hotels, gated communities and golf clubs. Use rain gutter instead.
“pay public servants!” Fire at least 10,000 of them, reduce salary for the rest by 20%.
“pay all bills that affect the running of a country”: No VAT or other tax refund for the next ten years.
AC, you have forgotten the many parlamentarians, the Supreme Court and the embassies. What about them?
And here my interpretation of Big Sinck´s speech:
“The downgrade was expected …” The same sentence EVERY downgrade. Big Sinck, please, a new statement. He tries to look smart by telling people the very obvious. Everybody expects at least 5 other downgrades to a full D. And by the way. WHY isn´t he doing anything if he knows the event in advance?
“to realise a further reduction in the deficit for the coming fiscal year” Also the same sentence EVERY downgrade. There was ZERO improvement. The deficit is too high ever since.
“Government expects growth levels in the domestic economy”. Sounds like a prayer in church to me. Economy is not about BELIEF, but about FACTS. And the facts are against the local economy.
“at least two per cent growth for 2017”. Either fake news or fairy tale. You decide.
“Government of Barbados remains committed to sensible and responsible fiscal adjustment” I am worried about the word “sensible”. We are not in the church or nursery here. We need brutal action.
Chuckle…..we look forward to more creative spin from the govt now the doo doo has hit the fan….we note that the govt apparatchik has become somewhat docile and more amenable to reason.
Tron March 3, 2017 at 8:27 PM # @
When you learn and understand what both governments were and still doing ,then and only then you will know their words means nothing, The White People system that they abuse in modern times like Sir Allen Standford and Madoff in the Massive PONZI,,
Once you get that down you will see more clear, Its not rocket scientist work , seek the truth and the facts and not the long talk, Take no advice from lawyers on this blog , or business people looking to make money at any and all cost of the people,
The White People in Banking is pulling the Plug on these crooks, liars and scumbags and these are nice words , As many went to their graves with not Justice,
These people just do not care, they are a special type of Evil,
Any belt tightening to revive this ailing economy must start with the cabinet taking a pay cut,an immediate revision downwards(less money) and outwards(more years to qualify)of parliamentarians pension benefits,an immediate halt to Fatted Calf politics,a reduction in ministers and parliamentary secretaries and stop giving contracts to Maloney,Bjerkman,COW Bizzy,Tempro and Simpson.There are black Bajans to be empowered.Stop the rot which you black asses are perpertrating by enriching the wealthy,you bloody fools.You jim crows.
@ Anonymous6 March 3, 2017 at 8:06 PM #
Dem can’t possibly be serious about that 10% this year especially after this downgrade?
…………………………………………………………………
And backdated it to boot!
That was down right heartless and inconsiderate thus confirming what all sane Barbadians feel that these morons are selfish and do give a hoot about anbody else.
You want to tell me that the Stinkliar did not see this coming?……….His plan was to act fast and cover up………fire Dr Worrell, ask the coward OSA to head an advisory committee but the downgrade news came faster than could be covered up.
Stuart and Sinckler can live to 100 years.Thier legacy will forever and ever be etched in the annals of Barbadian history as the two black asses who oversaw 18 downgrades of the economy so far.Bag blind yores.
Gabriel March 3, 2017 at 8:56 PM #
Interesting to note that MLK’s statement……judged by ones intellect as opposed to ones pigment……means nothing to you likewise all that Mandela stood for on his truth and reconciliation effort…..hmmmmm.
David March 3, 2017 at 7:47 PM #@@@
Selling out or selling all things the government claim they own can not help, Nothing will stop this but truth,
They will have a back door bribe going while selling out the Nation, They sold out a long time ago. As you know well we are paying for it today,
PONZI take 30 years, 1986-2016 is the key and the key players, Sir Fredrick Smith Sleepy is gone, One less rope needed at the end of the day, Al more will add to the Gallos
”Old Baje March 3, 2017 at 7:56 PM #
The government selling assets to pay current expenditures is like selling your car to buy groceries while still taking your annual vacation.” end quote
The point of selling assets is not to finance current expenditure.
The intention should be twofold.
One, to reduce ongoing burdens of costs related to a specific entity. That one would most be suited to a loss making entity.
Two, if sufficient funds are garnered, to pay off existing loans to reduce the debt financing cost, as well as the total existing debt per se.
That one would most likely be, but not limited to, a profitable venture such as the BNOC.
@Prodigal Son
Big Sink even told us in his statement that he “expected” the downgrade – as always. In other words, he will even “anticipate” a default next time.
Didn´t Ince already admit that the Barbados-$ is without any value?
quote ”the poor track record of execution. This comes as the country
moves into an electoral cycle, with parliamentary elections due by February
2018.”
To wit, they do not expect the government to do a darn thing that would jeopardise the election.
Prioritising political expedience over necessary actions.
Which is exactly my point as whether appointing OSA to any advisory position really matters, if the intent of prompt actions is not there.
The whole problem with this mess is that actions should have been taken ages ago and it was obvious to anyone with commonsense.
Promises are comfort to a fool.
DLP (Formerly CBC) Radio and TV March 3, 2017 at 7:44 PM #
“dont worry bitter medicine coming soon before the bell rings ,, enjoy”….hopefully ac it would be 16 cyanide pills…for the Gov’t to take@@@
It needs to be 30 DLP + 30 BLP and another 60 Pills for the past DBLP members over the years,
If they run out of Pills, Rope can be reused, All we need is an All White Court and an all White Jury ,You know what that mean , lololol
@Crusoe
Do not worry, Crusoe. Their lack of action shortens the time to devaluation to a point BEFORE next election. Then the civil servants will wish their masters should have sacrificed some of them instead of paying salaries in useless local currency.
Crusoe March 3, 2017 at 9:20 PM #
The whole problem with this mess is that actions should have been taken ages ago and it was obvious to anyone with commonsense.
Promises are comfort to a fool.@@@
What Action? List the Actions or list the cause of this mess, We know , we want to see if you know, They already Know ,
Name the Action? Crusoe ,, the action they Chused was Fraud
David
Has the government ever took the people in their confidence about its seeming decision to abandon the credit rating?
And if that decision was made, even in secret, what was all this talk about maintaining the exchange rate regime, up to now?
These two (2) cannot comfortably exist for too much longer.
What are your instincts.
@Pacha
A good and most difficult question. A guess is that the government became conflicted between maintaining a semblance of the Barrow model and the pressing need to be pragmatic.
>
@Old Baje March 3, 2017 at 7:56 PM “The government selling assets to pay current expenditures is like selling your car to buy groceries while still taking your annual vacation.”
Took 5 vacations over in away in 60+ years. Will never take another one. Not as long as I can walk to the beach, and read (even BU, lol)
Haven’t owned a car in decades. Will never own another one as long as I can walk and there is public transportation.
I’ve eaten well every single day of my life. Some food I buy, some I grow myself.
Yes I am one of those who would sell the car to buy groceries.
@ac March 3, 2017 at 8:03 PM “barbadians want to have their cake an eat it too, barbadians want to have country finances solved while expecting govt to carry all the burden of health cost !education! fix infrastructure! pay public servants ! pay all bills”
ac: the government does not pay any bills. We the people pay the bills.
As’s/ACs….still dont get that without the taxpayers there would be no government restoring 10% psy with their greedy selves therefore there would be no blighted, delusional yardfowls.
In a scene that could only be out of a old switchboard movie Minister of Fine Ants (not Finance) Chris Decimals Bond & Prime Minister FUMBLES Stuart of Barbados cursed the telephone operator in the phone exchange.
They then fired the operator at the sole Telephone company LIME, sorry that is the other company SOL that is a sole company in the Banana Republic read Barbados yesterday.
It would appear that, contrary to Decimals Bond’s explicit instructions, she permitted a call from the Ratings Agency Standard and Poors into the island.
Minister Decimals, as you can see from the photo, was livid and fired the old granny immediately.
It is purported that she was escorted out of the building like the Governor of the Central Bank De-Liar Worrell who he fired the prvious Friday.
That was, after telling her, in Duguid Style, bout her mudda chvunt.
The elderly lady was very dismayed and cried, all the way to the Central Bank (where Deliar was fired from) where she went to cash in her worthless Government Bonds
http://www.nationnews.com/nationnews/news/94177/stuart-spells-forward
Look at the worried faces.
Piece…the “tourises” on the cruise liners, floating petrie dishes, got the shits ……they could not leave a cruise liner yesterday, they would have infected the whole island, so sorry Fruendel the Fool did not invite the 11 infected tourists to Llaro court to wine and dine them,..idiot that he is.
@ Simple
Yes I am one of those who would sell the car to buy groceries.
+++++++++++++++++++++++++++++++++++++++++++++++++++
Selling the car to buy groceries was a poor simile. What we are doing is more like selling off various parts of our family house to strangers, so the we can put money in the bank to maintain the status of out credit card with the bank.
We sold the pantry to Trinidad and now have a new Massa
We sold the kitchen to Emera
Communications are now owned by FLOW
…and Sol will shortly be dictating the conditions of your cooking gas
Right now you may need the damn car …to sleep in down East Coast road…
David;
You know as well as anybody else that the Estimates will be presented on Tuesday…three days from now, not later this month, impressions count, and perception is important. In addition statements like “…It is time for the private sector to turn its back on the government.” are stupid and unhelpful. Who constitutes the Private sector? People from Mars, or even St. Vincent? and who is government, not the people? This is like the germane pilot who wanted to commit suicide and decided to kill all the passengers as well by crashing the plane he was in control of.
@Alvin
You are the one who manifest ignorance beyond your years. Why the hell do you think the former Governor jumped ship? Wouldn’t he have been privy to the numbers in the Estimates? Are the S&P people stupid too? Do you understand what it means to go down on a burning deck? You are one ignorant man.
@ David
….it is Alvin!!!!
The BLP (or should the unexpected occur & “another party” win the next election) they are in deep brown stuff – as they attempt to put this Island back on track. All of the measures that the DLP should have and did not do will then have to be implemented, frankly it is going to be “murderous ” to quote a former MP……….. the future does not look good.
@Alvin
Maybe you are right, we shouldn’t worry because D follows C.
@Tudor
The good news is that the new government will have a mandate and likely operate in an environment where consensus will be easier to negotiate.
David, and Bushie too;
First of all the man did not “jump ship” he was pushed, remember he fought it in court, of course you wanted him fired, and wished that he would leave quietly.. Second of all when, for instance, the govt attempted to make a correction; as per the enforcement of the early retirement clause with the BIDC workers, Mia and the Unions held a March; a la Duke of York of Sandi’s time, and threatened to close down the island, and the Government chickened out. Mistake!! The chickens are now coming home to roost.
Just as a matter of interest :
From Bad to Worse for Puerto Rico
by ivetteromero
puerto-rico_5a05812e4fcc73a00cce1339edbf3d83-nbcnews-ux-600-480
“From Bad to Worse for Puerto Rico” is a thought-provoking article by Joseph E. Stiglitz (recipient of the Nobel Memorial Prize in Economic Sciences in 2001 and the John Bates Clark Medal in 1979), professor at Columbia University, and Martin Guzman, a research associate at Columbia University Business School and an associate professor at the University of Buenos Aires. Here are excerpts:
Puerto Rico’s deep and prolonged recession has led to a severe debt crisis. And the combination of economic contraction and massive liabilities is having dire consequences for the island.
Everywhere in the United States commonwealth, private-sector jobs are being lost. Total employment in Puerto Rico has fallen from 1.25 million in the last quarter of the 2007 fiscal year workers to less than a million almost a decade later. Without employment, large numbers of Puerto Ricans (who are US citizens) have emigrated. But, despite this flight, the unemployment rate is now 12.4%. Without job prospects, the labor participation rate has plummeted to 40%, two-thirds of the level on the US mainland. About 60% of Puerto Rico’s children live in poverty.
The commonwealth’s debt position is clearly unsustainable, and its economy will be able to recover only if it gets a fresh start. But, unlike US municipalities, Puerto Rico is not protected by the US bankruptcy code. It is well known that decentralized bargaining processes for debt restructuring often lead to disastrous outcomes, with the relief obtained being insufficient to restore debt sustainability.
Aware of this reality, Puerto Rico enacted its own bankruptcy law, but the US Supreme Court struck it down, because the island is de facto an American colony, and the federal bankruptcy code permits only the US Congress to enact bankruptcy legislation over its territory. Eventually, Congress took action and enacted PROMESA, a law ostensibly designed to facilitate debt restructuring and economic recovery. Reflecting the standard colonialist view that a colony cannot be trusted to make independent decisions, a bipartisan Financial Oversight and Management Board was created to make fiscal decisions for Puerto Rico.
But PROMESA is bringing more problems than solutions. Recently, the Board—seemingly lacking both any understanding of basic economics and democratic accountability to provide checks against its incompetence – published its demands for the next fiscal year. The Board actually predicted that its proposals would turn Puerto Rico’s recession into a depression of a magnitude seldom seen anywhere: a 16.2% decline in GNP in the next fiscal year (and a further decline the year after), which is comparable to the experience of countries undergoing civil wars, or that of crisis-ridden Venezuela.
That is because the Board’s plan gives priority to the island’s creditors. It arbitrarily defines a minimum that must be paid to them in the short run, and forces the government to do whatever it takes to reach that goal, even if it means devastating the local economy. Indeed, the plan all but guarantees a social as well as an economic catastrophe, owing to substantial cuts in pensions, education, and health spending. [. . .]
For full article, see https://www.project-syndicate.org/commentary/puerto-rico-debt-plan-deep-depression-by-joseph-e–stiglitz-and-martin-guzman-2017-02
[Photo above from http://www.nbcnews.com/news/latino/here-s-how-promesa-aims-tackle-puerto-rico-s-debt-n601741%5D
ivetteromero | March 3, 2017 at 6:56 pm | Tags: PROMESA, Puerto Rican economy, Puerto Rico, Puerto Rico’s Debt | Categories: News | URL: http://wp.me/psnTa-tZ7
Comment See all comments.
Is Barbados headed in the same direction? You tell me. You suggest the solutions. Remember the Minister, in fact the Government is incompetent. You and your cohorts have the solutions. Offer them in specifics. Remember I “manifest ignorance beyond my years.” However my memory is still good beyond my years
David, and Bushie,
I forgot to ask, will you be “marching in disgust” next week?
@ Alvin
First of all the man did not “jump ship” he was pushed,
+++++++++++++++++++++++++++++++++++++++++++++
You unadulterated idiot!! why don’t you stop letting down Cawmere?
The GOCB ‘jumped ship’ when he walked away from the DLP position about printing money being the better alternative. Going to court was just his way of letting us all know that he was pissed.
If you have nothing to add to the discussion why not join Hal and just ask questions….?
Steupsss
…letting down the damned place all the time…!!!
I saw a picture of the finance minister with his eyes closed and a balloon filled with with ZZZZ above his head i thought it meant he was sleeping but I now know he was thinking of moodys and standard and poors. Poor is the standard in barbados and a lot of people are moody about it , but help may be on the way canada may re-open its investor refugee program you only need 10 million to get in, and if you dont have it you have to ask yourself…..why are you in politics in the first place.
The blogmaster invites you to join the discussion.