Christine Lagarde
June 1, 2018
Ms. Christine Lagarde, Managing Director of the International Monetary Fund, made following statement today:
“As announced by Prime Minister Mottley earlier today, the Barbados economy has been going through significant challenges for some years. The authorities are developing an economic reform plan designed to address these challenges, and they have asked the international community and the International Monetary Fund to assist them as they put the economy back on a path to recovery. An IMF team led by Bert van Selm will be visiting Bridgetown to start discussions on how the Fund can support the authorities’ economic plan. Our ultimate goal is to help Barbados achieve higher living standards and more inclusive growth for the years ahead.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Randa Elnagar
Phone: +1 202 623-7100Email: MEDIA@IMF.org
@ Tron June 3, 2018 7:50 PM
“Also: International investors will wait with any new investments in Barbados until an IMF agreement is reached and devaluation is settled. Nobody is going to buy now millions of worthless BBD for 1:2”
So what implications does that situation hold for the construction of the Hyatt hotel which has been touted as an economic game-changer for poor Bim?
What’s your wager?
Odds ‘Hyatt’ or Evens ‘No Hyatt’!
“Madam PM has created another historic first! A default on our country’s loan obligation! Madam have recorded downgrade number one!”
Fractured BLP
Yes, you are correct, Barbados’ credit rating was immediately downgraded by Caribbean Information and Credit Rating Service (CariCRIS), primarily because of the decision on Friday by PM Mottley, to suspend Barbados’ foreign commercial debt payments.
Fractured BLP, you always agreed with everything said by former finance minister, Chris Sinckler.
I recall on Tuesday, January 16, 2018 while in parliament, Sinckler made a reference to a credit rating downgrade made by CariCRIS. According to the January 18, 2018 edition of Caribflame:
“The minister also gave LITTLE CREDENCE to the recent downgrade by the Caribbean Information and Credit Rating Service (CariCRIS), which lowered its rating on the debt issue of US$300 million to CariBBB from CariBBB+ and its foreign and local currency rating from CariA- to CariBBB+.”
Sinckler suggested the rating agency was INSIGNIFICANT and no ATTENTION should be paid to it.
“All of a sudden, CariCRIS which NOBODY PAYS ATTENTION TO has become a big expert on the Barbados economy.”
(1). Do you agree with Sinckler’s assessment of CariCRIS re: “the rating agency insignificant and no attention should be paid to it?”
(2). If you share sentiments similar to that of Sinckler about CariCRIS, how is it that, at this time, you are now prepared to accept the rating assessment of Barbados’ economy?
(3). Or is it a case where CariCRIS becomes insignificant when they had reason to downgrade this island’s credit rating under a DLP administration……….but becomes credible and significant because of their downgrade under this current BLP administration?
According to the resident expert in every possible discipline on “earth and other places,” I am “appallingly ignorant,” so I’m asking you to please clarify.
what if the cost of deputy beer goes up
No problem……we could drink Hairoun instead……..a case sells for $24.
“Government must preserve these assets at all cost. The key to doing so, as I have publicly advocated, is to cut the public service by approximately 1,500 jobs and to reduce subsidies to Government-owned entities by 10 percent, in the first instance,” Dr Worrell said.
https://barbadostoday.bb/2018/06/03/pm-mottley-is-badly-advised-says-worrell/
Wow lord help us! I see in Bdos Today that the person heading up the delegation to Bdos is non other than Dr Bert Van Selm who is the IMF Resident Representative in Jamaica.
What will Bdos look like when he and his team is finished with us.Will we be able to buy 1 salt bread or a rock cake?
@David it is more than bad optics. We need to hold those serving in parliament to a higher standard. Too many incestuous relationships which benefit a select few at the expense of many. Say for example the close to election contract to rent manor lodge for the court (at what I understand to be $50,000.00 a month) comes up, what unbiased point of view can young Boyce really add when the Registrar who would have been instrumental in the acceptance of the location, is the wife of his fellow firm mate Ramon and his father was a part of the administration who allowed it? This nonsense has to end!
The good thing about the US setup is that nominees have to endure some public scrutiny before assuming office. How do we brake this nonsense by the political class? We have this endemic acceptance of patronage we can’t seem to brake away irrespective of the party in office.
RE and do stop quoting Zoe verbatim….
It gives the impression that you once falsely projected yourself to be that warped personage….
LIKE ZOE I QUOTE THE HOLY SCRIPTURES. A BOOK THAT BOTH OF US SEEMED TO HAVE STUDIED WELL
SERIOUS BIBLE STUDENTS MUST QUOTE THE SAME VERSES- WHICH WE CALL PROOF TEXTS– WHEN SPEAKING OF THE SAME TOPIC
THE SPIRIT HAS REVEALED TO ME THAT YOU ARE INDEED A DEVIL AND LIKE HIM YOUR FATHER
I MUST CONFESS THAT IT TOOK LONGER FOR ME TO REALIZE THAT THAN ZOE DID
BY THE WAY ZOE IS A WHITE MAN, AND IS A PASTOR IN A LOCAL CHURCH IN BIM, I HEAR
Interesting how these selfish, arrogant DLP yardfowls would want to blame a new government for all of their wrongs. But this has been the pattern for the past ten years under the DEMS blaming everyone except themselves for any problems and trying to get glory for the very very small amount of things they did right.
The people of Barbados declared who was to blame for the failed economy with a 30 – 0 defeat of the DEMS and no DLP yardfowl spin will ever change that.
Some are desperately trying to develop a sense of fear into the minds of Barbadians as it relates to this BLP administration’s decision to seek assistance from the IMF, by introducing the Jamaica.
What upsets me with political party apologists is the fact that they come to the forum with information based on emotion, political party propaganda or what they “feel is correct”…….rather than based on research of the facts.
Additionally, they are attempting to mislead BU by presenting information about Jamaica’s economy in 2001, implying that Barbados faces a similar fate in 2018……..without understanding the variables involved.
In 1979, Jamaica became the first Caribbean country to obtained assistance from the IMF to address balance of payments imbalances. These imbalances were primarily caused by the 1970s oil crisis. Additionally, A government imposed a levy on bauxite caused producers to “down scale” bauxite production, resulting in decreased revenues. In an attempt to maintain its previous spending levels, Government responded by borrowing from the central bank and extra-regional financial institutions.
In 1975, Jamaica had US$120M in reserves, which were significantly reduced to US$30M in 1977, until the island “ran out” of reserves. Government imposed a series controls aim at stemming the outflow of reserves, resulting in a “large parallel foreign exchange market.” Unfortunately, government was forced to devalue the Jamaican dollar. During the 1980s, Jamaica was faced with a severe foreign exchange crisis, social and political tensions, a decrease in output and increasing levels of inflation.
Between the end of 1987 and May 1988, the Jamaican dollar had been devalued by 95%, and continuing into 1990s, the currency was repeatedly devalued in an effort to improve on the competitiveness of domestic exports. In addition, the external debt steadily increased throughout the 1980s to as high as US$4.5B, or 125% of GDP, in 1989.
Barbados’ present economic situation is by far different from that of Jamaica, at that time……the variable are completely different…..
……………and Jamaica’s dollar was devalued BEFORE the island sought assistance from the IMF.
Therefore, to suggest that the IMF will “guide” Barbados along a similar path to that of Jamaica is ludicrous.
@Artax
You forgot to add that the IMF has reinvented itself from the early days.
Rover up !there is enough blame to go around but it is presumptous of u to expect the dlp supporters to sit with closed mouth as you and other blp yardfowls poised a false narrative soley placing blame on the past govt when auditor general reports during the blp years of plenty highlited the blatant spending on projects and exposed the monies spent on inventory that was never received
Yes there was also plenty corruption which gave cause for the blp to booted out of office for ten years
Sir tried posting an aricle this morning dated 2016 The IMF and the destruction of the Jamaica economy and it has not seen the light of day
What you are presenting has nothing to do with a more current article
So go sit yuhself down and come wheel again. Or ask David to post my article which he said when to spam ovet 8 hrs
Any consideration to devalue the Barbados dollar should follow the recovery of foreign currency held by Barbadian individuals and companies in unauthorized overseas accounts. It would simply be unjust to contribute to a crisis and also benefit from it at the expense of others.
This is an important point. In a market or economy in this instance where there is low or zero confidence flight of foreign exchange will take place. It is known ‘underground’ that a large number of Barbadians hoard US dollars in safety deposits or in Miami account. We have to restore confidence in the economy for people to cash in their US dollars and we have to increase penalties of anybody found with USD accounts on the outside.
The Central Bank should also audit the disbursements of foreign currency in cash by the banks.
David i dare u to go to the spam bucket and retreive the article i tried posting 3 times so readers can assessed and formed a decision out of biases
These “alarmists” have conveniently or purposely chosen to forget that Jamaica has made significant progress in restoring economic stability since 2013, supported by an IMF Extended Fund Facility (EFF), which expired in April 2017.
However, because economic growth fell short of the desired expectations and unacceptable levels of unemployment and poverty, the government cancelled the EEF and entered into a new 3 year Stand-By Arrangement(SBA) with the IMF. “The government intends to treat this new arrangement as precautionary and do envisage drawing on it unless unanticipated external shocks generate an actual balance of payments need.”
It is reported that the economic progress Jamaica has achieved so far, they no longer need IMF financing because the island regained access to domestic and international capital markets.
“With economic stability now restored, the loan supports the administration’s focus on achieving higher growth and jobs to help reduce poverty and improve the living standards of the Jamaican people.”
Since 2013, Jamaica’s debt to GDP ratio has been reduced from 145% to GDP to approximately 120%.
The downside to this dance with IMF…those who can legally do so, will leave their money off island until they see how and where this pendulum swings…
..those who are illegally hoarding money outside in foreign accounts, especially money stolen from pensioners and the treasury in various scams…should be hunted down and all their assets and accounts frozen..
There are more than enough agencies with lots of resources to engage in this exercise.
Ghee whiz who u trying to fool Jamaica debt is still a nightmare because of revolving loans from the IMF. Who wants to be indebted to a program and not see the light of day.Not to point out the socio decay that has become part and parcel from the IMF intervention
I dare you to ask David to retreive the 2016article which i tried to post The IMF destruction of the Jamaica economy
In which it was mentioned that Jamaica had to rely on China for financial support to rebuild its infrastucture while in the IMF support
You blp yardfowls cant twist the truth about the IMF Program because small nation evidence says different
@ millertheanunnaki June 3, 2018 8:30 PM
Hyatt won´t be finalized before everything with IMF and creditors is settled.
I also agree with Artax that there is no need for hysteria. The IMF did not only boost Jamaica, the IMF also tried to assist Barbados in the past – but Frundel himself refused. All the bad talk about the IMF is bullsh… Barbadians should fear the return of Chris Sinckler as Prime Minister, not an international club where the state of Barbados is a member of.
Mariposa
I recall reading the article re: “The IMF and the destruction of the Jamaica economy,” which was posted on-line by “GlobalBlog” on January 11, 2016.
From the second paragraph of the article states the following:
“The economy within not only Jamaica, but the whole of the Caribbean is in dire shape, and has been for decades. Over the past 40 years, several of the islands have turned to the International Monetary Fund, cap in hand, asking for help. Jamaica was the first to do so in 1977. Jamaica’s need for assistance came during the oil crises of the seventies, and despite then Prime Minister Michael Manley’s best attempts at resistance, even declaring that Jamaica was “not for sale”, he had to give in.”
“The harsh realities of the oil crises and falling revenues within the bauxite industry had all but forced Manley to apply for the country’s first of many loan agreements, leading to what academic Thomson Fontaine described as an “almost uninterrupted” stream of support for nearly two decades. Four decades removed from Jamaica becoming the first nation to sign up for a loan, it is still struggling and dependent on regular agreements from the International Monetary Fund, to stabilise its economy.”
Then the author goes on to give a brief description of the IMF and its “precursor,” the Bretton Woods Fund……..
………. in addition to a synopsis of Jamaica’s relationship with the IMF during the 1970s to 1990s…and how the IMF related policies during those times may have been responsible for “the destruction of the Jamaica economy.”
It is “BLATANTLY CLEAR and OBVIOUS” that YOU DID NOT READ THE ARTICLE you attempted to post.
If you had ACTUALLY READ the article:
(1). You would have NOTICED the SIMILARITIES between the information I posted and the information presented in the article. Or perhaps you may want to indicate the differences.
(2). You would NOT have written: “What you are presenting has nothing to do with a more current article.”
Perhaps you’re suggesting that, despite the information being similar, because the article is dated 2016, it is more recent?
Or, because you saw references made to the 1970s and 80s, you interpreted my information as not being recent?
My friend, you continue to prove my assessment of a political yard-fowl is correct……similarly to how you continue to prove Galileo wrong.
“So go sit yuhself down and come wheel again.”
Thanks David for posting the link .The IMF and the destruction of the Jamaica economy
Better late than never
My friend u might be of superior intellect . .However the article gives a dire state of continual economic affairs which Jamaica is still dealing with after 40years in the IMF program
All one has to do is read the reports of social deprivation coming out of Jamaica a country that was supposed to see a positive difference after the IMF took over
It is obviuos the govt was left standing holding the worst end of the socio enviroment bag in its effort to stay the course directed by the IMF in order to pay its debt
No, please, madam……I’m not “of superior intellect”……ask Hal Austin……he has proven otherwise and brought me to the realization that I’m “appallingly ignorant.” (And you characterizing me as such, may unfortunately cause Hal [the REAL INDIVIDUAL of superior intellect] to rupture a blood vessel).
However, you are misrepresenting the facts, perhaps because of your limited knowledge of these issues.
As I previously stated, the economic circumstances that caused Jamaica to seek financial assistance from the IMF were completely different from what Barbados is presently experiencing.
Therefore, it is ludicrous for you to use Jamaica’s experiences as an example for Barbados……….
………especially in the ABSENCE of information relative to any proposed arrangement Barbados may enter with the IMF.
In other words you DO NOT have ANY DETAILS on what a Barbados/IMF arrangement would entail…….yet you are PREPARED to suggest that, under an IMF program, Barbados will suffer a fate similar to that of Jamaica.
And can’t you indentify the folly in your argument?
https://youtu.be/PROuxJoE-WM