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David Estwick UAE 4 Billion Dollar Proposal to Restructure Debt Rejected by Cabinet YET he Voted YES to Appropriations Bill

In January 2014 Minister of Agriculture David Estwick in a surprising move submitted a proposal to Prime Minister Freundel Stuart urging the Cabinet to refinance and restructure the public debt by sourcing 4 billion USD from the UAE. In what is described as the UAE proposal Estwick advised there was interest by the UAE to…

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Chris Sinckler, Minister of Finance (l) David Estwick, Minister of Agriculture (r)

In January 2014 Minister of Agriculture David Estwick in a surprising move submitted a proposal to Prime Minister Freundel Stuart urging the Cabinet to refinance and restructure the public debt by sourcing 4 billion USD from the UAE. In what is described as the UAE proposal Estwick advised there was interest by the UAE to lend Barbados the huge sum at an interest rate of between 2 and 4% with a term of 30 years.

Fast forward to 2017: the fiscal position of Barbados has deteriorated and has fueled national discussion about going to the IMF for balance of payment and other support, devaluation, low investor confidence and so on. What is surprising is that Estwick having had his UAE proposal rebuffed by the Cabinet voted YES at the second reading of the Appropriations Bill last night (15/03/2016).

As a public service BU shares the letter Minister David Estwick sent to Prime Minister Freundel Stuart in 2014.

 

131 responses to “David Estwick UAE 4 Billion Dollar Proposal to Restructure Debt Rejected by Cabinet YET he Voted YES to Appropriations Bill”

  1. David Avatar
    David

    @fortyacresandamule

    It is clear the government has opted for option 1 as articulated on page 2. It is like having a credit card and making the minimum payments although the interest payments are increasing. There will never create the fiscal space by paying down the debt in any significant way. There is need for some drastic intervention, obviously.

  2. David Avatar
    David

    Whenever BU reviews data that list expenditures and revenue of government between 2002 and current on has to ask why! To run these large deficits for such a long period -what were we thinking?

  3. David Avatar
    David

    Page 10 of 19 is useful information as well to remind us that the economy is fueled by consumption there fiscal measures to curb spending will have a negative impact. What the 72% household consumption should have alerted Baans ong time ago is that we need to product more for export.

  4. fortyacresandamule Avatar
    fortyacresandamule

    To ease debt service payment on the domestic debt, we should extend their maturity profile and reduce interest payment.This is much better than doing a hair-cut.This could given the government so breathing space.

  5. Artax Avatar
    Artax

    nineofnine March 16, 2017 at 10:27 PM #

    “Trinidad can do it, why cant we?.. we Bajans produce cement for the Trinis to export, and doing so without our own factory.”

    @ nineofnine

    Please note, I’m not against your suggestion that Barbados should improve the manufacturing sector. However, based on my experience providing accounting services for small manufacturers, I highlighted the basic difficulties that usually affect the sector’s profitability.

  6. Pachamama Avatar
    Pachamama

    William Skinner

    We must admit that we read Caswell’s writings as BLP ‘influenced’

    Though those same writings are, many times, critical of the very BLP.

    We were never convinced, like with you, that Caswell gives not a Brassbowl about either party.

    Take it or leave it alone.

    That has always been our considered opinion.

  7. Tron Avatar
    Tron

    Debt restructuring depends on 1) clauses in loans and bonds 2) skills to negotiate. In any case Barbados should seek help from IMF, since this Royal Island is a member of IMF. I do not talk about a formal loan and some austerity forced upon Barbadians, but simply about valuable guidance. Just look at things like Cahill or exploration rights. There must be a fair third opinion to secure local interests. Also, the IMF learnt its lesson from Greece, that structural adjustments work better than increasing taxes every year.

  8. Hants Avatar
    Hants

    Bajans should follow the lead of these three fellas and move to the USA and Canada.

    “Sir Courtney Blackman in Florida and Winston Cox in Quebec, Canada, were joined by Charlie Skeete, a retired Inter-American Development Bank economic adviser who lives in a Virginia suburb,”

    See more at: http://www.nationnews.com/nationnews/news/94657/-consult-imf-debt#sthash.ggmsa8S8.dpuf

  9. angela Skeete Avatar
    angela Skeete

    Somebody tell thecommuinist Comissiong he would not get the blessing of the courts in his one man fight against the interest of barbados . The Hyatt would be built.

  10. London Morris Avatar
    London Morris

    angela

    The Courts will issue injunctive relief to Mr. Cmmissiong given the perverse natural of the process leading to the issuance of planning permission for this project. This was perverse of the outset.

    Understand that Mr. Commissiong is not trying to stop Hyatt from being built, he is only making sure the project goes through the proper legal and technical rigors befitting a project of such scale and potential impact.

  11. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    As’ s….he knows the law, remember Fruendel and his idiot Adriel Nitwit’s fingerprint scam…I could swear it was Commissiong got the court to slap that down, a Hyatt cant help yall be elected anyway, ya gone….,,and any new government has to start dismantling the Maloney scam to own the treasury indefinitely….yall useless, evil, lying people.

    Hants….the US border is closed, specialized Canadian nurses are being turned back, white nurses, US immigration switched visa requirements on them and the visa they told them they now need those visas have been suspended indefinitely, the were tueprned back at the Windsor/Detroit birder, just there …the borders are closed, as I keep telling Lawson, who is in stay in, who is out cannot get in….they are going after the silicon valley programmers and software engineers next, their visas are likely not to be renewed.

    Met a young indian doctor yesterday, just finished her degree and internship in Trinidad, knew her when she did 6th form at QC with one of my daughters years ago, she is trying to sit exams, get her specialty and pray they allow her to practice in the US….no guarantees. …none…….because of the vusa switch and inactive H-1 B Visas.

    …….the Caribbean is now a bust for lawyers and doctors. …that is the magnitude of the problems. . ..in Canada, ya gitta go back to school all over again, if ya in their position and did not attend university in Canada…most are now stuck on the islands….I doubt the politicians can immigrate after their stints either….unless they have US or Canadian citizenship.

    That’s why back in those years middle to end of the 2000 decade, it was a better move to send ya kids to Canada for university…more latitude….now, not so much.

  12. London Morris Avatar
    London Morris

    David

    You might want to post on BU, for our benefit, an internet picture that would give the true natural of what a 15 story building looks and feels like from the pavement/road in front.

    You have certain agricultural and other projects requiring a Environmental IA and Social IA but this blasted monstrosity could be approved and built without reference to those who stand to most affected and without regard for accepted environmental protection protocols?

  13. London Morris Avatar
    London Morris

    I Would support an online petition to lobby Hyatt that this project will damage their brand given perverse nature of the approval process and the lack of regard for the environmental and social impact.

  14. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Blackman, Skeete, Cox…all did stints in international institutions, they were back then in demand worldwide, ya have to be exceptional to get those types of freedoms to live in those countries indefinitely in these times….they dont even want the whites if they broke and have nothing extremely valuable to offer……and even then…lol

    That’s why I keep telling Lawson he has to sneak into the US to play golf….and dont get caught..lol

  15. NorthernObserver Avatar
    NorthernObserver

    “To run these large deficits for such a long period -what were we thinking?”

    This is the essence of this governments financial policy. Were they dreaming revenue streams would somehow grow exponentially? The challenge one gets when expenditures climb as they have, is one faces the question the MoF has asked “where do we cut”? This is not a financial question (that is easy), it is a social and political question.

    Part of these ‘over’ expenditures are related to servicing the debt which continued deficits produces, and part are related to a bulging public payroll and related expenses.

    The call for IMF intervention is useless IMO, because this option has existed for years, but certain persons refuse to accept that anybody but themselves can decide what is right for Bim, At this late stage, to alter course, is to accept failure. And the arrogance of the decision makers, will not let this happen. Keep the ship sailing, flood the money supply, change nothing, and let the hard decisions fall to whomever wins in 2018.

  16. NorthernObserver Avatar
    NorthernObserver

    @WW&C
    I have been in the USA for several weeks, and have gone back and forth a few times. I have experienced nothing different than I did in the 35 years prior to the last Presidential change.

  17. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    What is really annoying, is that years ago, over a decade, the Barbados governments were warned by the same Charlie Skeete and others that this would happen, if they did nothing and if they refused to listen to one of the sons of the soil all the years who specialized and reached the pinnacle of his career in economics. ….when they themselves are so mediocre, then they deserve what’s coming, unfortunately it’s the poor people they deceive will bear the brunt of these government ministers ignorance and wickedness and as none of them have empathy for the suffering and destruction they are causing on their own people …we can only watch the fallout.

  18. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Not many can say that Northern, but there has been ample proof that people are being turned back….do you work in the US…, and take note, you may not be turned back these few times, but next time, one woman from Australia made 172 trips to the US before she was detained….all of this information is available.

  19. angela Skeete Avatar
    angela Skeete

    The court would do no such thing based on a principal that the people living in the proposed site was not given a voice.
    The govt has already shown proof by way of evidence that the area was given clearance previously for a building which most likely had already had been a voice from the people

  20. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Dream on As’ s….you never know what a judge might do based on the facts presented, that, however, cant distract away from government incompetence, government lies and treachery and the 8 year old printing of money because their empty heads have no new ideas to manage the economy.

    Were you planning to get some of that Estwick UAE 4 billion dollar loan money for your bank account yardfowls.

  21. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    https://www.barbadostoday.bb/2017/03/17/region-loses-top-playwright/

    The Caribbean’s Noble Laureate Derek Walcott has passed away.

  22. David Avatar
    David

    Why do we feel we have to respond to every comment emitted from a yardfowl? The pressing issue here is the ineffectiveness of our system of government where a sitting minister of cabinet is opening critical of policies he has collective responsibility. The running of continuous deficits etc.

  23. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Estwick criticism means nothing if he turns right around and not only agrees with but votes for the same policies he is critical of…..it just means he has emotional problems and should not have a government portfolio, he is of no use to the people.

    As things stand everyone has to wait for this government to run it’s course….ya have a year, you do not have a strong opposition that can force the government out of parliament, yardfowls are still spreading lies, misinformation and deceit to the populace, still trying to derail progress, ya hands are tied until the government is voted out,….there is no way around that…..

    …..terms limits need to be introduced, but they are all to selfosh to do so, this is the right time for a caring government to intriduce term limits to end abuse of the electoral system. …but ya dont have a caring government, they dont even want to end the abuse of the judiciary.

  24. Tron Avatar
    Tron

    Northern,

    The Mikado-approach you describe is true, but could lead to a complete financial meltdown in Bim before the next election, since the two rating agencies will deliver their next downgrade faster. And D follows deep C.

    It will only take one proper spark to trigger the bank run.

  25. London Morris Avatar
    London Morris

    angela

    You are a legal dunce.

  26. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    http://bit.ly/2nN0Mk4

    Important info on the deadly yellow fever outbreak in Brazil.

  27. angela Skeete Avatar
    angela Skeete

    To a good parting shot. Percedence set the stage for the Hyatt and the court will agree

  28. angela Skeete Avatar
    angela Skeete

    London

    Not a good parting shot . Precedence has set the stage for the building of the Hyatt and the Courts will agree

  29. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    As’ s….ya like Estwick, make up ya mind..lol

  30. angela Skeete Avatar
    angela Skeete

    To all you guys against the Hyatt using pretentious symbols to derail the project just go back to your hiding hole and take Comissiong with you.
    He has proven to be a pox on all govt projects having no remedial proposals that can generate meaningful measures for our country
    He sits like a lone wolf in the dead of nite to steal and trample any worthwhile benefits that would be of advantage to barbados
    Yet there are those who are too politically blind to see or understand his devious motives although the evidence lies in the fact that he would endorse communist ideologies and practices while holding fast to a disguse formula of wanting to help barbados

  31. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    http://bit.ly/2nND9rG

    Can anyone say that the voters are getting exactly what they deserve, exactly what they voted for, they knew what they woukd get, what would happen, but tgey voted for it anyway.. …now they got it…be careful what you wish for. .

    Bajan voters should take note.

  32. Tron Avatar
    Tron

    Lord Bannon is increasing the US defence budget by 54 billion USD. Expect an American – Chinese scenario within the next fourt years. The Caribbean is a potential military theatre as well in this greater scenario, since some countries have signed military contracts with PRC.

  33. Gabriel Avatar
    Gabriel

    Right next door we ought to keep a watch on that place Guyana now that the man Jagdeo wants to return to President.He and Trump are an exact match.Liars,psychopaths,lunatics,
    demagogues all believe they have a divine right to control their universe.Guyana’s Granger is dealing with a madman.He should take notice.

    http://kaiteurnewsonline.com/2017/03/16/on-its-knees-2/

  34. bajans Avatar
    bajans

    If you have been vaccinated for Yellow fever, you are supposed to be immune for life. Trinidad had an outbreak in 1979 and I went for Carnival. No problem.

  35. de pedantic Dribbler Avatar
    de pedantic Dribbler

    “The price of oil will go up in the future, take this for granted.”

    @Tron March 16, at 8:16 PM…Your crystal ball needs cleaning.

    You are taking ‘for granted’ dynamics of an oil market that has changed completely.

    Pundits like yourself made similar remarks in the last two years that the price of oil would return to its $100/barrel price point. It has NOT and likely will not get anywhere near there again unless DPRK’s Kim Jong starts a war.

    It’s all about shale oil revolution in the US. If (when) this dynamic, new and environmentally destructive fracking oil exploration process is embraced by other oil-deposited countries which will then generate even more oil capacity the Sauds particularly will seek to maintain their market share in the face of high supply.

    Prices surely will not increase when there is over-capacity of that ‘commodity’.

    For every price point north of the general range of $55/barrel there is an invitation to ’frackers’ to seek oil stored in the rock shales. Below $50 the experts suggest that their costs becomes too expensive ‘a well to hoe’, so to speak.

    For the Sauds that $50 range thus becomes an ‘artificial’ sweet spot.

    So I imagine that there are surely great reasons to dismiss the UAE proposal but a future big price increase in oil prices in not one of them.

  36. NorthernObserver Avatar
    NorthernObserver

    @Tron
    has the fear of a meltdown ever dampened the enthusiasm of the MoF or the PM? They do not share such fears. You cannot expect the Zebra to shed its stripes?

  37. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    https://www.barbadostoday.bb/2017/03/18/oh-no-mara/

    The very backward and ignorant Mara Thompson who did not earn her seat in government being insulting to Bajan women and children, if this does not open the eyes of the people of St. John whom she openly insults when she feels like, nothing will.

    Get rid if this backward jackass Mara Thompson who wants to see children in Barbados picking bottles insread of using their brains and natural skills and talents..

  38. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    https://www.barbadostoday.bb/2017/03/18/bye-bye-stuart/

    Fruendel’s constituents want him GONE, Bajans are not as stupid as everyone believes they are, particularly DBLP, they do not need degrees to see they are being robbed, deceived, lied to and victimized by government ministers.

    …… personally, I prefer give people the benefit of the doubt, they know they have been played for fools by both political parties for decades, they know as soon as these slimy politicians are elected by them, they act and think just like the repugnant and disgusting Mara Thompson and the idiot Steve Blackett and arrogant Fruendel, Inniss, Sinckler etc who have no empathy or sympathy for those they cause to suffer and struggle.

    The people will do what they know is right for election, even though they know they do not have good options..

  39. Bush Tea Avatar
    Bush Tea

    @ WW&C
    Fruendel’s constituents want him GONE
    +++++++++++++++++++++++++++++++++
    The only problem is that the alternative is even worse than he is….
    At least he keeps his damn mouth shut.

    Imagine as country that spent so much money on education finds itself in such a Catch 22 position ….in practically EVERY constituency…?

    Ass=Grass

  40. Violet Beckles CUP Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI Avatar
    Violet Beckles CUP Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI

    https://www.facebook.com/oskar.t.brand.official/videos/1567082556651362/?pnref=story

  41. Violet Beckles CUP Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI Avatar
    Violet Beckles CUP Plantation Deeds from 1926-2017 land tax bills and no Deeds,BLPand DLP Massive land Fruad and PONZI

    PONZI needs more money to live to get past next election and we will be in all Hell in the next 3 years. To keep the Massive Fraud keep keeping on, How the Mighty has fallen,

  42. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Bushman…I agree both political parties DBLP should be disbanded, but in looking at this present reality, if properly guided, the 120,000 or less bajans who vote can up end the decades only vicious practice of bpth parties by splitting their vptes evenly between the 5 or 6 parties who are presenting themselves as candidates, that will destroy the stupid “we win the government” mentality of ministers and yardfowld that the electorate has endured for 50 years, they will all have to start working instead of honeymooning, preening, starting disenfranchising scams and schemes against the prople or getting arrogant and disrespectful to the people who elected them, none of the parties should get more than 25% or less of the electoral votes. ..

    But the electorate needs guidance.

  43. Prodigal Son Avatar
    Prodigal Son

    I listen to some of the debate last night and was appalled at the arrogance of James Paul.

    The Opposition lead was trying to educate the moron on the way how debates should be conducted “in committee”. The man would not listen and got agitated and hot under the collar. Mia took her seat and left the idiot alone.

    No wonder we are where we are today….their hignorance knows no bounds…..to quote David.

    But James Paul is a hypocrite………..in a former role I used to talk to him and on many occaions I would ask how are things going and the man would say that he does not like what is going on, his constituents are suffering and on on and on he would speak of the government of which he is a part.

    Look at his pretend outrage at the importation of chicken wings by one of Dumbville’s constituents……..whatever happened to the inquiry that was supposed to have taken place?

    We are doomed under Fumble and his fools.

  44. Prodigal Son Avatar
    Prodigal Son

    What’s up with Mara Thompson picking a fight with Mia and Santia about them not having children?

    Some women choose to have children, some choose not to…….that does not make them ignorant on how to deal with children. This woman is an idiot.

    I would not attack her but she should really look into a mirror.
    Is she a good mother?

    Are her children squeaky clean as result of her parenting?

    Is she a good example when her children would hear and read how she as an office manager of her husband’s law firm helped to launder 3.3 million dollars and then calimed she knew nothing about it?

    Did she ever question howher husband ended up so filthy rich when he was only a part time lawyer?

    How does she look into the mirror every day and know that CLICO policyholders are suffering when she hears the judicial manages say that a lot of fraud took place?

    Woman give me a break! You dont have to born a child to be a parent…….my sister does not have any but she is one of the best to my children.

  45. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Mara should be questioned on why SHE allowed St. John to further deteriorate under HER representaion for the last 8 years….or lack of…..her display is one of ignorance….it appears that all she is good at is dozing in parliamnent, an ignorant, lazy woman.

  46. Violet C Beckles CUP Avatar
    Violet C Beckles CUP

    Estwick is a crook acting like he wants to help,dont be fooled again , Yes we have spoken to him face to face,
    Vote CUP end the games and the fraud, every crook will get skin up this time around,

  47. Gabriel Avatar
    Gabriel

    Mara owes Barbadians an explanation as to why she neglected the Yearwood family of Clifton Hill,St John.We want the Opposition spokesperson on welfare and constituency councils to grill King Dyal and woman from Helen who inherited and continues the neglect true to form.
    Similiarly we want confirmation from the Pit Bull and from the dozing minister of health that none of this tainted meat was allowed onto the plates of Bajans and tourists over the past 2 years.

    http://www.bbc.com/news/world-latin-america-39311336

  48. Kevin Avatar
    Kevin

    Edmund Hinkson and George Payne have one another in court. Yet, they are standing together as a team. Whats the author’s point. Estwick knows he’s part of a team and is putting his differences aside. Just like Hinkson, Payne and may I add Symmonds.

  49. Well Well & Consequences Observing Blogger Avatar
    Well Well & Consequences Observing Blogger

    Mara owes Bajans lots of things, she owes them respect first and foremost, she has no respect for bajans, just like her late husband, then she owes an apology for her insulting, disrespectful attitude to women and children, children are not on this earth just to pick up bottles, did her daughters pick up bottles….she owes the island an apology fpr her arrogance, her neglect of St. John and it’s people and all the money she has been collecting from taxpayers as a salary monthly for 8 years for doing no work, should be returned to the taxpayers…..

    …..what a useless human who now has the nerve to highlight how neglected St. John is when she is the one maliciously and deliberately neglecting the people and parish….she is acting as though bajans are too stupid to see she is neglecting St. John.

  50. Tron Avatar
    Tron

    Big “Jester” Sink announced plans for a “new hospital” today. From what money? The bigger the figure, the funnier the ideas.

    A hospital for “chronic disease”. What about banning Chefette, KFC, Burger King instead and proper school meals?

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