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Barbados Government Seeks IMF Assistance

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

270 responses to “Barbados Government Seeks IMF Assistance”

  1. A. Dullard Avatar
    A. Dullard

    Are Bajans asleep? Folks, the government is broke and in default.

    Do you realise how dire the situation is?

    Barbados is about to enter a grim period of austerity and yet people on here seem to think that it is some kind of political game being played.

    #bunchoffools

  2. Well, Well Avatar
    Well, Well

    Similarly…it is being said the banks are broke, they so damn thieving..

    https://www.facebook.com/DollarVigilante/videos/2012290065450080/?t=13

  3. Tron Avatar
    Tron

    Are the ATMs still working with local debit or credit cards? Just a question.

    I hope everybody has enough champagne, lobster and caviar in stock for the summer …

  4. Prodigal Son Avatar
    Prodigal Son

    I heard of four of the GG’s picks:

    Kevin Boyce
    Lindell Nurse
    Dr Maynard (An ENT)
    Rev Michael Maxwell

  5. Hal Austin Avatar
    Hal Austin

    A. Dullard,

    Bajans live in a constant state of self-delusion – punching above their weight; God is a Bajan, etc. I have asked before, who is giving government economic advice? Is it Mascoll, Persaud, Caddle or Straughn?
    Is restructuring debt going to sort out the current account deficit?

  6. A. Dullard Avatar
    A. Dullard

    “Bajans live in a constant state of self-delusion.”
    Yes they do.

  7. A. Dullard Avatar
    A. Dullard

    http://gisbarbados.gov.bb/wp-content/uploads/2018/06/Press-release-Barbados-Announces-Emergency-Plan-to-Address-High-Levels-of-Public-Indebtedness-and-Fragile-External-Position.pdf

    “Government announced that it is, today, suspending payments due on debts owed to external commercial creditors”
    Hahaha. What a wonderful euphemism, ‘suspending payments’. Translation: can’t make payments.

  8. Tron Avatar
    Tron

    The declaration of default is also at:
    http://gisbarbados.gov.bb/wp-content/uploads/2018/06/Press-release-Barbados-Announces-Emergency-Plan-to-Address-High-Levels-of-Public-Indebtedness-and-Fragile-External-Position.pdf

    Also read this:
    https://www.barbadosparliament.com/htmlarea/uploaded/File/Resolutions/2013/Resolution%20Credit%20Suisse%20AG%20Cayman%20Islands%20$225%20000%20000.pdf

    Event of default for the CS loan: eg “debt restructuring of the Borrower”, “declaration by the Government of a general moratorium with respect to any payment of any indebtedness”

    Deutsche and CS will not forgive ONE CENT when many Barbadians still drive big SUVs at the time. No way. FCIB is irrelevant for the 2013-debt. They are mere local clowns.

    I wonder what will happen to Donville Inniss when he does his so-called business in Zurich next time. Will Credit Suisse sell his as… to Saudi Arabia?

  9. Mariposa Avatar
    Mariposa

    Who will be giving barbados economic advice
    Didnt Mottley made it clear in her press conference that she had talk to Lagarde
    These ministers would become window dressing and have but little or no choice in accepting the IMF advice in restructing Barbados debt
    So whoever the homegrown economic advisors are would have their hands tied to the IMF plans and policies

  10. millertheanunnaki Avatar
    millertheanunnaki

    @ Tron June 2, 2018 6:11 PM
    “Deutsche and CS will not forgive ONE CENT when many Barbadians still drive big SUVs at the time. No way. FCIB is irrelevant for the 2013-debt. They are mere local clowns.”

    Neither would the IMF allow them easy access to soft loans for BoP support or for economic restructuring as long as the government can forego the collection of duties and taxes (waivers) on luxury vehicles imported to satiate the conspicuous consumption demands of a Director of Sales for a Hyatt hotel for which not even a slab of prefabricated concrete walls made from Hard Rock cement has yet been laid.

    What the new Minister for Investments also has to tell us is the status of the following investment projects:

    The Four Seasons sale about which Avinash Persuad has a lot to explain.

    The aborted or delayed sale of both the BNTCL and Hilton hotel’.

    The financing sources for the construction of the proposed Hyatt Hotel for which a ‘phantom’ Director of Sales has already been recruited.

    David Comissiong, like RIP Van Winkle has fallen asleep so there is no whipping boy to use as an excuse for the delay in the start of construction of the Hyatt unless this was just another figment of Maloney the business magnate imagination just like the Rock Hard Hotel.

  11. Well, Well Avatar
    Well, Well

    The exyardfowl needs to go and congratulate Caswell.

  12. Prodigal Son Avatar
    Prodigal Son

    @Miller

    No, Comissiong has not fallen asleep. LOL……..he was kinda busy during the campaign, you know!

    He gave a speech one of his best yet at a meeting, coincidentally for Joe Atherley…….dealing with the former Fumble’s rant that he would pull Barbados out of the CCJ should he had been returned to office.

  13. Talking Loud Saying Nothing Avatar
    Talking Loud Saying Nothing

    Protests against IMF-backed tax reform bill continue in Jordan
    Demonstrators gather near the office of prime minister in Amman to protest against price hikes and tax increases.

    4 hours ago

    https://www.aljazeera.com/news/2018/06/180602202834612.html

  14. Are-we-there-yet Avatar
    Are-we-there-yet

    I await with bated breath to see who will join Caswell as the 2nd Opposition senator. As it now stands, Caswell, alone, will arguably have a much greater potential for clashing with any Government policy or bill with which he disagrees than perhaps any previous senator since we became independant. If the LoO selects another firebrand, maverick type we can expect fireworks in the Senate which will fully test the resolve and direction of the Government. I think another good choice by the LoO will pay dividends for transparency in the parliament in general and not just in the Senate. This new Parliament, merely by the choice of Caswell has the potential to bring more important causes to the public’s notice than if the DLP or SB or UPP had been given one of the Opposition Senate seats.

    Very interesting times ahead and I wish Senator Caswell well. I suspect also that Caswell will be fully supportive of the Government’s attempts to shield, more tangibly, the less fortunate in the society from the effects of the coming austerity measures.

    The senate has taken on a significantly greater importance because of Caswell’s appointment. Can we hope that the moves that have followed the 30:0 result will act as a catalyst for Senate debates that will have the potential to return many more bills to the house for reworking because of a likely enhanced diligence and patriotic fervour of most of the new Senators, engendered by the obvious needs of the situation that Barbados finds itself in.

    The thinking outside the box approach by this new Administration, in this case, has the potential to lead to the development of a new system of Government that could be much better for the country than if the DLP had accepted the PM’s first offer.

    Whew! What a frenetic time!

  15. Sargeant Avatar
    Sargeant

    @AWTY
    As it now stands, Caswell, alone, will arguably have a much greater potential for clashing with any Government policy or bill with which he disagrees than perhaps any previous senator since we became independent
    +++++++++++++
    Don’t get carried away, Caswell will be one of 21 and the Gov’t will have 12; the GG after “consultation” with the PM will have 7 and the LOO 2. Caswell may be a maverick but don’t start measuring him for Superman’s cape yet.

    It’s still early days.

  16. Are-we-there-yet Avatar
    Are-we-there-yet

    Sargeant; Just some other figures you should consider:

    A quorum is 8 and the Independent senators + the Opposition senators is 9. Circumstances could force some interesting results.

    But, in any case, I’m not fashioning a Superman cape just yet. merely a super maverick one! If the LoO nominates a fairly ordinary maverick to complement Caswell sparks could fly.

  17. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    When Dale Marshall was Attorney General, did he do the type of job that Barbadians can say they were proud of? This man comes over to me as being a little better the last jackass that did not understand what the AG should do. Just saying.

  18. Sunshine Sunny Shine Avatar
    Sunshine Sunny Shine

    Caswell Baby

    You know the SSS got a soft spot for you. boy. Go and get them, my dear. we expect nothing but the Caswell type of spin in this new position. Congrats and show them how a senate and PAC should operate.

  19. Tron Avatar
    Tron

    Barbados hit by another downgrade!

    http://www.nationnews.com/nationnews/news/163500/downgrade

    S&P and Moody´s will join very soon.

  20. David Avatar
    David

    By freezing payments to external this will automatically trigger downgrades. This is obviously expected and calculated to trigger debt forgiveness and reprofiling initiatives and the lot.

  21. Tron Avatar
    Tron

    David,

    Barbados could soon join the group of heavily indebted poor countries (HIPC), joining Haiti, Afghanistan and Sub-Saharan Africa.

    However, just compare the lavish lifestyle of many Barbadians, including the judges and other civil servants, with this group. Barbadians still think that they can drive around in their many Mercedes Benz, shop around the globe, have a nice holiday abroad and enjoy debt relief + a stable Barbadian Dollar.

    Deutsche Bank, Credit Suisse and the IMF will say NO WAY!

    It is now out of gov´s hands what austerity comes next – otherwise the island ends like Argentina. You cannot boast across the globe in many adverts that Barbados is a tropical paradise and beg for debt relief at the same time.

  22. David Avatar
    David

    Let us be clear, Barbados has the highest debt burden in the region. What this government has done should have been pursued 4 to 5 years ago. You are correct that as a country we will have to agree to the lifestyle we can afford in the short term and medium until more stable economic sectors can be established.

    http://www.nationnews.com/IMG/014/83014/front-page.jpg

  23. Tron Avatar
    Tron

    MAM is right what she is doing now. It is not her fault, also not the fault of OSA, the Golden King of Barbados. The DLP was in charge for ten years and did nothing or the wrong things.

    MAM must clear the table. No other option left. All brutal measures must be implemented by the end of this year. And then we wait, hope and see if the economy and other things kick in.

  24. Mariposa Avatar
    Mariposa

    Cat piss and pepper would rule the day. The IMF policies would be the driving force on how barbados debt would be resurrected
    The so called opposition views would not be influential and sufficient enough to reccomend policies for the voiceless
    Mia would rule with an iron fist. Like Trump her members would be forced to stand behind her out of fear.
    Mia has already laid her intentions directed by austerity measures of the IMF
    Yes cat piss and pepper would rule the day.

  25. Bush Tea Avatar
    Bush Tea

    @ ac
    If you were intelligent enough, you would understand that the ‘cat piss and pepper’ was being mixed over the past ten years by a pack of illiterate misfits and shiitehounds of DLP lineage …. and stirred by idiots of your ilk.
    Bajan brass bowls eventually tired of the smell and the rot, …and have now thrown the whole mess out into the street (just like on the South Coast).

    It is only obvious that the dumping will result in increased smells and exposed rot….
    It is what will be needed to initiate a major cleanup….

    The ONLY REAL question now is whether Mia and her band will proceed with the MESSY job of CLEANING UP the shiite ….
    …or if she will seek to hide the piss and jobby under various bushels and carpets – to protect individual shite hounds.

    Were Bushie in YOUR place, the bushman would be currently pissing his pants because…
    1 – Having put Caswell in place to OFFICIALLY influence matters,… Mia has effectively passed transparency legislation.
    2 – ..and having gone to the IMF, Bajans will have to pay for the shiite that we TOLERATED for ten years. Do you think that Mia will cover wunna DLP asses and take the blame HERSELF? …. or do you think that she will expose ALL and let the baloney fall where it will?

    Do you REALLY want to hear Bushie’s guess…?
    Bottom line….
    The best hope for the DLP is to gather at the Garrison (behind wunna monument) and seek Satan’s assistance
    – cause wunna asses looking more and more like grass….

  26. Mariposa Avatar
    Mariposa

    https://globalblog1.wordpress.com/2016/01/11/the-imf-and-the-destruction-of-the-jamaican-economy/

  27. Simple Simon Avatar
    Simple Simon

    @Mariposa June 3, 2018 6:44 AM “Cat piss and pepper would rule the day. The IMF policies would be the driving force on how barbados debt would be resurrected.”

    Mariposa, it is Sunday, the tradional day for resurrections, but but nobody wants to resurrect [to bring alive again] Barbados’ debt. What we want to do is to kill [pay off the debt] and even though it will be hard, even though we may get crucified, we can do it, but it took 10 years to create the mess and it will take some years to do a clean up.

    I said before the election, that if I had a choice of going to the IMF with Chris & Co. and going with Mia & Co. I would choose to go with Mia & Co.

    And I said too, using the Christian theme, that I am not expecting manna from heaven, from Mia & Co., nor from the IMF.

  28. Georgie Porgie Avatar
    Georgie Porgie

    re The best hope for the DLP is to gather at the Garrison (behind wunna monument) and seek Satan’s assistance

    IN ALL MY LIFE I HAVE NEVER HEARD ANYONE TALK ABOUT SEEKING SATAN’SASSISTANCE

    ONLY A DEVIL AND SON OF THE DEVIL SEEK’S SATAN’S ASSISTANCE OR TALKS ABOUT DOING SO

  29. Simple Simon Avatar
    Simple Simon

    @Tron June 2, 2018 1:54 PM “PM declared default on debts of “external commercial creditors”. These are loans like the “grand” CS loan from 2013. I am not sure if it also means a default on any gov bonds issued so far. PM also declared default on all “domestic creditors”. In my understanding, this includes non-commercial creditors as well = clueless Bajans buying gov junk bonds. Most of the NIS money is lost as well.

    Didn’t buy any Barbados government bonds, simply because I just did not trust Chris and Co. Did not trust them at all. Did not trust David Thompson either. Did not vote for the D’s in 2008, nor in 2013. That is the truth.

    Expecting a cut to my NIS pension, so I have already started growing my own food and some for other people (and the monkeys) Praying for good weather. Not too much rain. Not too little, and please God, no hurricanes.

  30. Tron Avatar
    Tron

    God save Barbados! As you said before, better to the IMF with MAM than with Sinckler.

  31. Bush Tea Avatar
    Bush Tea

    @ GP
    Every time you post you come across as more stupid that we had previously come to surmise….

    If you do not get irony and satire, then perhaps you should stick with watching cricket
    – or whatever you do for mental stimulation…

    Steupssss…
    It simply means that there is no hope for the DLP.

  32. Georgie Porgie Avatar
    Georgie Porgie

    I REPEAT

    IN ALL MY LIFE I HAVE NEVER HEARD ANYONE TALK ABOUT SEEKING SATAN’SASSISTANCE

    ONLY A DEVIL AND SON OF THE DEVIL SEEK’S SATAN’S ASSISTANCE OR TALKS ABOUT DOING SO

    IF YOU WANT TO SAY there is no hope for the DLP, SAY SO.

    YOU ARE OF YOUR FATHER THE DEVIL, AND YOU SPEAK LIKE HIM ah lie?

  33. Georgie Porgie Avatar
    Georgie Porgie

    for mental stimulation, besides watching cricket I STUDY SO THAT I CAN SHOW MY SELF APPROVED AND SO THAT I KEEP SATAN, YOUR FATHER FAR FAR FAR AWAY FROM ME

  34. Mr Whapax Avatar
    Mr Whapax

    I really hope that Prodigal is wrong about Kevin Boyce being one of the GG”s picks. Isn’t he ex -minister”s John Boyce”s son and one of the partners supervising the GG”s son who works in the litigation department at Clarke Gittens and Farmer?

  35. David Avatar
    David

    Yes, was waiting for more info on this when Prodogal Son posted, the optics not good but some will say Barbados is a 2×3 place and therefore this kind of thing is inevitable?

  36. Bush Tea Avatar
    Bush Tea

    IF YOU WANT TO SAY there is no hope for the DLP, SAY SO.
    ++++++++++++++
    Now you seek to tell Bushie HOW to whack…???!!??

    As said before…
    Every time you post – you come across as more stupid than previously indicated…

    …and do stop quoting Zoe verbatim….
    It gives the impression that you once falsely projected yourself to be that warped personage….
    LOL
    ha ha ha

  37. lawson Avatar
    lawson

    The IMF says there is a fix for barbados..as long as no-one buys or eats anything

  38. millertheanunnaki Avatar
    millertheanunnaki

    @ Simple Simon June 3, 2018 8:22 AM
    “Expecting a cut to my NIS pension, so I have already started growing my own food and some for other people (and the monkeys) Praying for good weather. Not too much rain. Not too little, and please God, no hurricanes.”

    There is a relatively high probability such a cut can occur.
    For sure, those ex-public sector workers sucking from the sore nipples of the Treasury might just find themselves having to settle for 10 to 20 % less free milk in their golden years.

    Why do you think the last set of crooked politicians took back their 10%? Because they knew since last year what was in store for Bim.

    BTW, the IMF did not impose itself on Barbados. Barbados is the one imposing herself on the IMF.
    You guys were warned over and over again about what is about to unfold before your very eyes.

    “Hard ears ya wouldn’t hear, hard ears ya gine feel!”

    But why not look on the bright side? At least Bajans would be forced to go back eating natural foods and living more active and healthier lives.

    There might just be a clearly seen correlation between the reduction of conspicuous consumption based on imported material junk and a decline in the rate of obesity so prevalent among the young population; mainly black women the bedrock of the nation.

  39. David Avatar
    David

    Today’s VoB talk show is dealing with the impact of a IMF program with Marla, George Belle et al.

  40. Tron Avatar
    Tron

    After a unilateral declaration of default, the IMF is the only way to tone down the wrath of Deutsche and Credit Suisse.

    Otherwise the local offshore financial sector would be gone next week.

    However, there won´t be any initial debt relief from international creditors. Barbados must first cut the local debts and that by far stronger than international debts, also Barbados must cut the expensive social welfare state and the bloated bureaucracy.

    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.

    In other word: The international community want to see some human sacrifice first. Remember “The Merchant of Venice”!

  41. Hants Avatar
    Hants

    @ millertheanunnaki “Hard ears ya wouldn’t hear,own way ya gine feel!”

    That is what they used to say when I was a youngster.

  42. Fractured BLP Avatar
    Fractured BLP

    Madam PM has created another historic first !

    A default on our country’s loan obligation !

    Madam have recorded downgrade number one !

    It’s Mia’s Fault = I M F

  43. millertheanunnaki Avatar
    millertheanunnaki

    @ 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’!

  44. Artax Avatar
    Artax

    “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.

  45. lawson Avatar
    lawson

    what if the cost of deputy beer goes up

  46. Artax Avatar
    Artax

    No problem……we could drink Hairoun instead……..a case sells for $24.

  47. Hants Avatar
    Hants

    “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/

  48. T.Inniss Avatar
    T.Inniss

    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?

  49. Mr Whapax Avatar
    Mr Whapax

    @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!

  50. Georgie Porgie Avatar
    Georgie Porgie

    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

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