Unmanageable Sovereign Debt

It seems obvious to BU that successive governments have allowed debt levels to rise to unsustainable levels. The key indicators used by the analysts all show that Barbados leads Caribbean and Central American countries as it relates to servicing debt. The IADB report highlighted also shows that rising debt is a problem for almost all Caribbean and Central American countries. We are facing a systemic problem of enormous proportion.

With increasing levels of debt and, in most cases, low growth or weak macroeconomic fundamentals and declining fiscal surpluses, the developing economies of Central America and the Caribbean are becoming more concerned about their ability to adequately service sovereign debt from lower fiscal surpluses with the increasing possibility of sovereign default risk (See Table 2.2, showing average fiscal surplus or deficit over the period studied).

See IADB ReportWhat are the Fiscal Limits for the Developing Economies of Central America and the Caribbean?


  • Bernard Codrington.

    @ Artax
    @ Miller
    @ David

    You survived 9 years . How come you cannot survive another 9 months? It took us 300 years to arrive at this point in our history. Do you want to squander the legacy which our forefathers sacrificed to leave us?This is a time to plan; not to lose courage and fortitude.


  • Barbadians in general have been fed a bowl of bull for lo too many years belivi g they can live off the hog and do nt have to feed him. The same anolgy apply to when govt impose any firm of taxation. Every bidy cry belly hurt.

    The same true can apply to Artax analogy that govt does not have to provide a measure of some form of security when trying to refinancingdebt.
    Every thing comes with a price and that include refinancing of sovereing debt and most of the time it is the social enviroment of. an economy that is traded off as collateral


  • millertheanunnaki

    @ Bernard Codrington.June 15, 2017 at 12:27 PM

    “This particular topic started with an assumption that the sovereign debt was onerous.
    It was posited that debt was a substitute for tax revenues not levied and collected.”

    Shouldn’t that have read: ‘debt is a form of ‘Deferred tax revenues’ to be levied and collected’?

    For sure, taxes must be levied and indeed collected in the future for the debt to be serviced.

    Just asking for enlightenment!


  • Miller

    However, you make it appear as if the responsibility to make contributions to the pool rests solely on the shoulders of these off-payroll tax dodgers comprised mainly of “butchers, carpenters, fisherfolk and mini bus owners {who} make a lot more money than some who are deemed middle class” aka that eponymous group called “the poor black man”.
    There is already adequate legislation on laws on the statute books to collect taxes from those off-payroll tax avoiders.


    Taxes to be reviewed to eliminate the small man from paying any as he will be caught in the VAT net and allow an equitable rate for the high end earners.

    I am dealing with the dying breed called the small poor man…..he does not own property,he rents or lives in a govt unit,he contributes his children to the state,he pays VAT……what more do you want from him?

    Thanks Miller for dealing with the straw man/woman that Artax and William have put up only to drop serious lashes in it with the sanction of my washed in the blood buddy BT.I was not referring to them who as you have pointed out can be found only if govt did its work.

    I am dealing with the individuals that fall into the under $13,500.00 per annum tax free category which I would like raised gradualy to $20,000.00 over a 5 year period as per first para.

    I grew up in the country&lived most of my life in the country and was exposed to the individuals who built Bim by the sweat of their brows and continue to live by it,this dying breed still exists especially in the Scotland District and these are the ones I talking about.


  • Artax, and your ilk,
    The official IDB reports that: “Barbados leads Caribbean and Central American countries as it relates to servicing debt. ”

    The most important part is that Barbados ..Services its debts. It pays off its loans. It shows that despite reports of downgrading etc etc, It pays its bills, and that should translate into a first rate credit rating. However in the face of the negativity the agencies still downgrade. They are looking at other factors, but it shows that the country is managing its financial obligations quite well. It is only the agents of gloom and doom that wish things could be different. All the government has to doc is keep the ship on an even keel and refrain from panicking and giving in. They just have to remain on the path chosen, and achieve the balanced budget they will get this coming year.


  • Bernard Codrington.

    @ Miller at 12:27 PM

    What I have written , I intended to write. All debts from the accounting and banking points of view are created at the point where expenditure exceeds revenue. Tax is government’s revenue. If revenue is short it creates a debt at the Central Bank,on its suppliers accounting ledgers, or issues debentures to individuals ,corporations etc.

    Of course you are quite free to adopt another sequence. It is all about perspective , is not so?


  • @ Alvin Cummins

    Can you refer to any paragraph, sentence or phrase in any of our contributions that mentioned Barbados “did not service its debt?”

    Alvin, you need to cease from your habit of misinterpreting what people contribute to suit the purpose of your agenda.


  • @ Vincent

    Perhaps it’s you who has created “the straw man/woman,” because the people to whom you refer re: “the individuals that fall into the under $13,500.00 per annum tax free category,” are adequately taken care of by the state and qualify to benefit from more social services than their middle class counterparts.

    Individuals in the category you alluded to, for example, can assess funds for operations, the NAB, UDC & RDC are also to cater to their various social requirements.

    Unfortunately, their “pride” plays an important role in preventing them from accessing these services.


  • @Bernard

    Advocacy by the citizenry is a right that must not be ring-fenced.


  • Wrong again, Angela Skeete

    Believing social services is an ASSET is a MISCONCEPTION that is prevalent among Barbadians.

    “The social environment of an economy (CANNOT be) traded off as collateral” because it is not an asset, but a liability to government.

    An international financial institution would never ask government to use, for example, the country’s tourism product to be “traded off as collateral,” because tourism is considered an “asset.”

    It is an investment that has value and is available to meet debts or commitments.

    One such commitment is social services.

    Another misconception is that the financial institutions would want government to “eliminate” social services.

    Under conditions of the type of loan you may be referring to, social services would be made available specifically for indigent or impecunious individuals and not for those who can afford them as is the case presently in Barbados.

    Additionally, many of those individuals who now qualify for social services would no longer meet that qualification if government decides to introduce “mean testing.”


  • Bernard Codrington.

    @ David at 3 : 32 PM

    We all have rights as citizens which we should exercise when necessary. However ,there comes a time when we exercise them so often that they become a nuisance and counter- productive. It is at this point that they become ineffective. It is advisable to keep one’s eyes on the ball.

    Head is not brain; and brain is not intellect.


  • Prodigies

    Stop your sissy lament !

    Who say the Dems cannot get the job done ??

    Because you and few charlatans keep saying so you believe the majority of Bajans mind wunnah ????

    Wunnah claim since 2008 :

    The Dems is a one term government !!!
    The economy gone crash !!!
    The tourists gine stop coming to Bim !!!!
    Foreign investors gine stop coming to Bim !!!

    Mia & Arthur gine mek up !!!

    Mia & Maria gine remain inseparable !!!!

    Tick the ones above that come to pass and you will see where your blasted PROBLEMS are …..!!!!

    And you could bet yuh last dollar as soon as the bell 🔔 ring…..Mia ass gone…..!!!!!

    Canuoan…..Canuoan Canuoan.,…!!!!!

    Get familiar with that word……yuh JOHHNIE……!!!

    The Dems don’t have to do nothing different

    Wunnah been calling for elections fuh years…,,, ah hope wunnah like the results …..!!!

    As ‘ To the Extreme ‘ sang this ……the country could falling down , the treasury can bun down…..we jamming still…..

    Go and rest yuh tiefing BLP arse…….


  • Not going to tally back and forth with you but anyone with a half of brain understands that creditors does not give something for nothing especially to small island developing nations with out of controlled debt.
    You are trying to argur putatoes against potato
    The bottom line being the art of the deal requires much manipulation hand wringing and the necessity for both country and creditor to work out arrangements that no side would walk away empty handed.
    As i said previously the lowering of interest rate is not a guarantee that the principal would decline faster and for that matter the time period of the loan would decrease which in some cases it would be extended
    Artax u can have the last word.


  • Yes, Angela Skeete, I will DEFINITELY have the last word.

    It is obvious that you do not know anything about economic issues and yet you come to this forum to debate rhetorical political diatribe on every topic.

    You are a head-strong political yard-fowl who is so ignorant that not even you are aware of your ignorance. You love to argue shiite based on what you believe to be true and not on facts, especially when those facts are looking at you “straight in your face” and you hate to be PROVEN WRONG, which is more often than not.

    “Not going to tally back and forth with you, but anyone with a half of brain understands that” it is the height of STUPIDITY trying to compare debt consolidation of households and companies with that of a country, when there are significant differences between the two.

    In the future, please do some research before commenting on the economy. I can’t tell you to consult with Christopher P. Sinckler because he has been an abysmal failure as Minister of Finance.

    But then again, perhaps Sinckler is the person ADVISING you to write the shiite you try deceiving us are intelligent contributions to BU.

    Additionally, posting that Youtube video does not prove anything. With your level of intelligence, surely you do not expect BU to BELIEVE you WATCHED a video that is OVER 2 hours long and understood its content, ESPECIALLY with BLP candidate RYAN STRAUGHN being a PARTICIPANT in the discussion………..

    ……… when some articles posted to BU for “discussion” are three paragraphs long and you have significant difficulties understanding and responding appropriately?


  • Like most so-called Caribbean experts, Michael Julien is utterly incompetent. His model of economic growth is based on rapid population growth, which is a recipe for continuing poverty and misery among the bottom half of the population.

    By any international standard, the Caribbean is overpopulated. We need fewer people, even though this raises the per capita cost of government. Fewer people means more land and capital per person, and more opportunities for saving. More saving can lead to more investment.

    A pity there is so much bad advice floating around.


  • millertheanunnaki

    @ Chad99999June 16, 2017 at 8:35 AM

    Chad, it is rare that I find myself on all fours and in perfect conjunct with your views on this matter.

    The Caribbean, especially Barbados, has too many unproductive and underemployed hands and mouths to feed given its limited and indeed declining economic generators.

    The number of excess hands in Barbados might have been suited to a more agrarian economy based mainly on sugarcane production but within a changing service-type economy characterized and driven more and more by ICT the number of unproductive people on hand after leaving school is clearly excess to requirements.

    The old axiom that “the devil finds work for idle hands to do” is certainly borne out by the massive crime wave sweeping across the region.


  • Julien advice is placed on a foundation that an economy needs people for it to survive . A small island nation with a rapidly ageing population cannot sustain itself absence of population growth.


  • MTN

    I’m a good guy. You’re a good guy. I’m sure we agree on a lot of things!


  • Shiite!!!
    Chad, neither you nor Miller even know what ‘good’ is…
    so don’t be presumptuous.
    The most that we can say is that wunna two brass-bowls of a feather sometimes flock together…
    ha ha ha


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