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External Debt Default WATCH!

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On another BU blog it was highlighted the decision by the Financial Services Commission (FSC) to cease trading in government securities – Financial Services Commission Issues Cease Trade Order on Government Securities immediately after winning the government on the 24 May 2018. The FSC communication indicated the decision was informed by government’s decision to default on foreign debt payments. To be expected the ‘bold’ decision caught the country by surprise against a background of an unblemished repayment record and smashed to smithereens the boast of Barbados NEVER defaulting on a foreign loan payment.

Prime Minister Mia Mottley has announced a large team to support the Barbados Labour Party (BLP) campaign strategy to stabilize the country’s declining economy comprised of Dr. Clyde Mascoll, Marsha Caddle, Ryan Straugn, Avinash Persaud and the controversial White Oak Advisory Limited. The finance team is part of a large Cabinet appointed by Prime Minister Mottley that has attracted loud public comment. Particularly there has been rising concern about the role of little known White Oak- not much is known about the company except that the London-based independent financial advisory firm to act as a financial advisor in the debt-restructuring exercise.

Two observations from the blogmaster which have arisen from the decisions taken so far by government and agent the FSC.

There is a reasonable expectation that the impact of the decision by government to default on debt repayments will impact business customers differently to individuals. For what it is worth the blogmaster reminds whom it may concern that Barbadian individual investors were encouraged and assured by the Central Bank of Barbados to invest in the country by purchasing savings bonds. The financial advice was supported by the former government eliminating the minimum savings rate offered by commercial banks. In another market there might have been a prima facie case of collusion. A discussion for another time.

To state the obvious, any decision to reduce yields/rate of return on bonds held by individuals and non personal entities will have significant consequences.  The Prime Minister has promised she will be transparent about the engagement with the IMF. After 10 years of belt tightening there is no relief insight for the immediate future. Who said how did we get back here?

The other issue that has surfaced is the advice by all and sundry to withdraw their monies from commercial banks and place in credit unions. The blogmaster has no problem with supporting the credit unions, the movement has played a significant role in the development of working class Barbados and has the potential to do more. However, a few questions are worth repeating.

  1. How will credit unions sustain existing interest rates of up to 2.5% in a market where there is a low appetite for borrowing?
  2. Why has the credit union league been unable to secure deposit insurance for members?

Two credit union employees from the City of Bridgetown and Barbados Workers Union discussed the competitive position of credit unions compared to the banks. To be honest, the blogmaster was not persuaded by the arguments.

Have a listen and form your conclusions to the 15 July 2018 podcast.

 

 

 

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152 responses to “External Debt Default WATCH!”

  1. America On Coffee Avatar
    America On Coffee

    Interesting!!!

  2. Dentistry Whisperer (M. Pharm. D) LinkedIN Avatar
    Dentistry Whisperer (M. Pharm. D) LinkedIN

    Your assignment over the next year is to watch the social movements of Rawdon Adams. Is he more often seen at Barbados Yacht Club or “Dippa’s” Sailing and Cruising Club? Of importance is his association with Elliott Mottley. Elton is not very important because he told me he and his wife are happy in Jamaica. I think Rawdon will will give Mia her two terms, but after that we will see another Adams as PM. (Dated this 22nd July 2018) Haynes Darlington.

  3. Mariposa Avatar
    Mariposa

    The bonds yes another area where barbadians had taken a patriotic decision in loaning the govt money during harsh time within a time period expecting a higher rate of return on their principle than what was offered by banks
    Which begs the question why didn’t Mia pursue the selling of bonds as an alternative for further increasing revenue rather than depleting the the interest promised through the purchasing of bonds
    Where is the out cry when this govt makes a decision that has catspraddle the potential interest rate generated in buying the bonds and have all but decrease people lack of confidence for the future to investing in barbados short term long term private or govt
    Mia unilateral decision to default on debt should be cause for serious concern internally or externally which all but causes a vexation of the mind and triggers a rippling effect for all investors local or foreign shoring up a lack of confidence and soon to be expressed by a lack of trust and interest in this govt and a willingness of not wanting to invest their hard earned money into a market that cannot be trusted
    The accountabily margin by this govt has hit level red and beyond and barbadians will not be the wiser

  4. David Avatar
    David

    Where is the out cry when this govt makes a decision that has catspraddle the potential interest rate generated in buying the bonds and have all but decrease people lack of confidence for the future to investing in barbados short term long term private or govt

    Increasing bonds doesn’t increase revenue but the blogmaster understands what you meant in the context.

    The other point is that the take up of bonds by the public fizzled and did not achieve the objective of soaking up the huge liquidity in the banking system. It is important to note we have local debt and foreign debt, the floating of savings bonds addresses local borrowing only. Obviously the decision to default by the government was on EXTERNAL debt.

  5. bajanfreeparty Avatar
    bajanfreeparty

    Only a law and order Person can save the Nation, its does not matter the name but the Actions, We need Rule of Law and not lawlessness, So need not study Man woman or who they sleep with, Most running after the names and titles and that what has us in this mess, Greed and the greedy, We need to line them up under rope or against the wall,,Keep thinking this is a joke and long talking away from the issues, facts, finding of real law, Live your life in the same disorder you see in Barbados in your home Nations it shall have the same ending that is coming to Barbados, None can never be a fireman for the fire would burn forever while telling lies while posting,

  6. T.Inniss Avatar
    T.Inniss

    @ David/BU ( the one who is a reasonable fella)

    I like this article.Very balanced sir.

    I await discussions from knowledgeable persons like Wily Coyote.

  7. Mariposa Avatar
    Mariposa

    However my point being that the default did nothing to help building confidence (from the local investor ) into buying govt instruments
    As far as soaking up liquidty that can be attributed to past govt failure in not explaining to public the value of purchasing the bonds and its impact in building the economy and govt not having to borrow money externally von foreign at high interest rate but in turn the local investor and the economy would have benefited
    Be that as it may. The damage to the local investor because of the default has been done .in the meanwhile BIG banks look out for their interest as they too might have taking a beating because of the default and out of concern for their future and shareholders and by having to remain in a default market (rather than moving out of the volatile market)might have taken steps to protect their shareholders out of concerns which have all been presented because of the default and the risk factor a mechanism which if left to chance can cause a severe bleeding of funds and strain on their profit margin
    The banks already know from past history how default countries are high risk to do business as the negative consequences are real and nothing is secure or sustainable but rather than move out stay (put) with a reasonableness to protect all interest
    It might not the way small / local investors like but think of the alternative

  8. Well Well & Cut N' Paste At Your Service Avatar
    Well Well & Cut N’ Paste At Your Service

    After they are done trying to tell the Blogmaster how to operate HIS blog, they still gotta return to the subject matter at hand….how to get the Mia government to arrest the thieving, bribetaking exgovernment ministers and their co-conspirators in the minority community…who all ripped off the treasury.and pension..

    AND

    How to make sure that the greedy ministers in the Mia cabinet….which are obvious THREATS to the people and island just like their predessors. … do not try to outdo the former thieving exministers by stealing more, being more corrupt, taking more bribes and selling out the people into more oppression, exploitation, victimization and disenfranchisement. ….as they are so famous and well known for….in this government as well as the defunct DLP.

  9. Wily Coyote Avatar
    Wily Coyote

    @David

    “default on debt repayments will impact business customers differently to individuals.”

    I do not believe the DEFAULT will have any significant different impacts on business and individuals, however the timing of the effects will be different as is already seen. The consequences to local debt situation will play out over a longer timeframe than the forgien debt. The holders of the forgien debt hold the upper hand in any debt negotiations, local debt consequences and negotiations with local debt holders will have to wait until forgien debt obligations for repayment are agreed to.

    Going back a couple of years Wily expressed concerns with the GOB letting banks reduce their savings rates as he could see what the GOB MOTIVES were. Reduce bank rates so local Barbadians would invest in GOB SAVINGS BONDS with unrealistic high savings rates, giving government access to badly needed cash flow. In turn the banks were initially happy but suspicious, their suspicions were well founded as GOB mandated that their deposit rates at Central Bank climb from 5% to 20%, once again generating badly needed cash flow for the government. It was a well thought out initiative by GOB to generate badly needed cash flow for day to day operations, ie pay salaries. Anyone with rudimentary financial insight could ascertain the consequences, country and individuals were going to pay the price. The future will tell exactly what this PRICE is going to be.

    The consequences of Sovergien Default I suspect, as David implied, will result in significantly more impact to LOCAL DEBT holders than FORGIEN DEBT holders, not because the locals hold more debt but because the impacts on the local populace will be more pronounced as to their low resilance.
    Example, local populace is operating with a high personal debt load, future employment levels are going to dip significantly, recession will be inevitable, currency devaluation is a likelihood, etc etc.

    The mis-mismanagement by the GOB over the last several years, 15+, is now coming home to roost as they say. The consequences are going to be severe and nothing like what Barbados has experienced in the past. The BIG QUESTION IS CAN BARBADOS RECOVER TO ANY SEMBALANCE OR NORMALITY.

  10. Well Well & Cut N' Paste At Your Service Avatar
    Well Well & Cut N’ Paste At Your Service

    WHO are obvious THREATS to the people and island just like their predessors.

  11. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ The Honourable Blogmaster

    You said and I quote

    Here are some things that are “known” for those of us readers that LET GOOGLE BE OUR FRIENDS

    It certainly does make us wonder what the Leader of the Opposition is doing doesn’t it? But then again the Leader of the Opposition is Mia Mottley!

    https://beta.companieshouse.gov.uk/company/10090922/officers

    1 officer / 0 resignations ESPINOSA, Juan Sebastian

    Correspondence address 42 Brook Street, London, United Kingdom, W1K 5DB

    Role Active. Director Date of birth: October 197. Appointed on: 30 March 2016

    Nationality: British, Country of residence: United Kingdom. Occupation: Economic Advisor

    Then de ole man AS THE Leader of the Opposition (cause Enuff of Lorenzo appointed me to that office) continued me boolean search and found this innocuous item

    https://document-api-images-prod.s3.eu-west-1.amazonaws.com/docs/pwyFLITyirpf611gcc5kL2GqUQgF9cP8hPRAv-DjpgM/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Credential=ASIAJMZO7TTOHP5ZHLYQ%2F20180722%2Feu-west-1%2Fs3%2Faws4_request&X-Amz-Date=20180722T114547Z&X-Amz-Expires=60&X-Amz-Security-Token=FQoDYXdzEEIaDFL%2BZOEiZQVChT2XOCK3AxAMwzMLXen1pSYvKJScLx8mbDMZJ7OamRmyBopRkX5iMxc47AIXZjxfGk9ISu8vW0UEc0vNTbtpCp1mQGFa1hErZkzXSFrAJptoNhhXlwBcTjXwmSv%2BNlCp40%2BuAcEf22dhXq4w6Xp2tQecoHtgN5CrhB2WwRmULxfSaDQ3mJdwRK3ly8GKuq2PrA7l4dwnWKhUV%2BOFBsFzcLNrP6pZ3seAbLIWM9vdcuWWD5if2Qa0OHayPszeCRZpyTJm5XQ%2Fcw%2FyOcROl8UfqtnkNuZxjR1lL5EfsX8ZvSnNx8gK2l6szgP9Uqdu%2BgIoLnGrwAeCMNKa95nhv2PP0W2PrboVuMWxrIXb9tusMNJQKLXXSq0UdsnVT9VsEnDZwTkkjcRuxkxdNCUOtOtVgAEnGds0jXABHI5d73VQvx2GJ3I1N%2FQXht9vE7dLOumYLUOKReBaUD%2BhC9MV5MRHhpnjMw50gysqrDcw4IEV1TAfFWtyUMLoaJX5zU%2BdlsILpBJRWWcIw%2F%2Bv51mP0i0fLFVbry4LxEL3wS9MFD4lNcqqHCkX4YrV1peGHR%2FpfzBBDMoolQxCnQNJW8h1MEYo8oXR2gU%3D&X-Amz-SignedHeaders=host&X-Amz-Signature=8523a14c26f01d652a364628af5c1f9e5a472d53a0d810d5e02cdc9e0f6541e8

    Now this is the thing about independently verifiable documents and the internet, THEY CANT BE HIDDEN , most of the time heheheheheheh

    Now, in and of itself, said document does not mean much, companies change names from time to time but what one has to do with ones due diligence exercise is to determine IF THIS, OR ANY ONE DIRECTOR COMPANY, has any “antecedents” or lawsuits pending under its former name.

    But one thing that is becoming quite evident that this company, with a ranking of 1069, has in the space of 2 weeks, been able to “spin up” a Search Engine Optimized response that NOW reads “…The world’s only truly independent sovereign advisory firm. White Oak Advisory was founded by veteran sovereign advisory professionals wishing to create the world’s first independent financial advisory firm focused on sovereign debt matters…” IS REALLY OPERATING LIKE A HOAX, creating its own profile on the fly.

    Maybe this has alot to do with it trying to meet the stringent requirements of the International Monetary Fund DE OLE MAN ENT KNOW but one ting dat de ole man do know is ICT and what is TRULY BLOWING AIRE UP THE POOCHES OF BAJANS.

    But REMEMBER THAT MIA GOT THIS ONE and Mia is MISS INTEGRITY HERSELF INCARNATED!!!

  12. David Avatar
    David

    @Wily

    Doesn’t the foreign bondholders have an interest in ensuring the government can mobilize growth? The market tanks they don’t get paid?

  13. Georgie Porgie Avatar
    Georgie Porgie

    RE bajanfreeparty July 22, 2018 6:59 AM

    Only a law and order Person can save the Nation

    ONLY GOD CAN SAVE OUR NATION
    BUT I SUSPECT IT IS ICHABOD, AND THAT HIS GLORY HAS LONG DEPARTED FROM OUR SHORES

  14. Mariposa Avatar
    Mariposa

    The pressures of default to a country are insurmountable and far reaching
    Argentina comes to mind. The poor suffers the most as govt spending is severly cut on social programs.
    What is note worthy the plan to cut youth programs is just the beginning which is all but laying the foundation for the IMF policies and plans for other social programs to follow
    Mia is being guided by the hand of smoke and mirrors a way of slowing and detaching the people from the realistic blows of what a default can do to households

  15. David Avatar
    David

    You are aware the former government felt comfortable kicking the foreign exchange can down the road? The foreign reserves graph shows the DLP was unable to grow the reserves. We can debate why but all that matters is that they were unable to do it. Now it is the turn of the BLP.

    #watchmuh?

  16. Georgie Porgie Avatar
    Georgie Porgie

    MARIPOSA
    WHY YOU DONT EASE UP NUH
    WHY CANT YOU WAIT?
    DAY DOES RUN TIL NIGHT CATCH IT
    SO TOO WITH ALL THE SHIT MIA DOING CATCH UP WITH HER

  17. Wily Coyote Avatar
    Wily Coyote

    @David

    “Doesn’t the foreign bondholders have an interest in ensuring the government can mobilize growth? The market tanks they don’t get paid?”

    I agree, FORGIEN DEBT holders would be better off if Barbados could mobilise growth, however investors are investors, they manage RISK, generally have deep pockets and losses at times are anticipated. They know when it’s time to take a LOSS and walk away and look for more favourable investment opportunities.

  18. David Avatar
    David

    Doesn’t your comment address new investment only? What are the options for the parties i.e. government and creditors.

  19. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    And if wunna tink de ole man telling a lie take a look at

    http://www.whiteoakadvisory.com/our-team/

    Where Espinosa now get join by a Nagagoshi or sumting

    But be ye not dismayed by this Vapourware being blowed up wunna pooches by de ole man

    Go and tek a look at a reputable web reputation tool and see if de ole man fabricating tings as De Hood and Hoodie and Enuff of Lorenzo telling wunna dat i does do

    https://www.alexa.com/siteinfo/whiteoakadvisory.com

    And there wunn will see that THERE IS NO EFFING REPUTATION because this is all a “SPUN UP” internet item to fool all uh wunna ingrunt sheeple!!

    Jes like Rawdon’s CV? some of wunna might add but not de ole man

    heheheheheheheh

    But I gots to go now to de sea where Enuff of Lorenzo does send de ole man when I bring up tings dat dem cant gainsay

    WUNNA TINK DAT MIA GOING GIVE ME A PICK in this new innovation ting?

    heheheheheheh

  20. Mariposa Avatar
    Mariposa

    It is also obvious that local banks are reeling from the default decision and has put up a financial firewall to protect its which has drawn fire from the local investor a cry for people to take their money out is flooish but what are the alternatives.
    They are alternatives ways by which people can earn money through the banking system without withdrawing their savings and still come out ahead.

    GP THANKS FOR YOUR ADVICE BUT I HATE LOSING MY HARD EARNED MONEY AFTER HAVING AN AGREEMENT WITH ANY ONE PERSON GROUP OR GOVTFOUNDED ON PRINCIPAL
    YES I UNDETRSTAND MITIGATING CIRCUMSTANCES WILL MAKE WAY FOR NECESSARY CHANGES TO OCCUR SOMETIMES FOR GOOD OR BAD
    HOWEVER I HAVE A HARD TIME WRAPPING MY MIND AROUND A DECISION THAT COULD HAVE BEEN AVOIDED GIVEN THAT GOVT HAD SOME RESERVES THAT COULD HAVE BEEN PUT IN PLACE TOWARDS PAYMENTS AND ALSO THE POLITICAL INFLUENCE WHICH UNDERMIND AND OVERSHADOW THIS GOVT PURSUING OTHER ALTERNATIVES IN PURSUIT OF REVENUE
    YES I AM MAD A SORE LOSER WHEN IT COMES TO MY MONEY

    ##:#::::####wherethereisnovisionallislost

  21. David Avatar
    David

    @PUDRYR

    Did you check the date white oaks domain was registered?

  22. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ All the Financial Genuises who have commented and who have yet to comment

    Wunna evah get in wunna car and let wunna 2 year old child drive de car?

    Why then NOT A FELLA ENT SAYING NUFFIN BOUT dis White Hoax Advisory driving team, formerly one man but now two?

    I can understand the silence of the BU BORG representative (who is not the BU David OF OLD cause he will have to rest on sundays but…) looka Wily E Coyote and T. Inniss and all the rest who are drinking the coolaid!!

  23. millertheanunnaki Avatar
    millertheanunnaki

    @ Mariposa July 22, 2018 7:58 AM
    “The banks already know from past history how default countries are high risk to do business as the negative consequences are real and nothing is secure or sustainable but rather than move out stay (put) with a reasonableness to protect all interest
    It might not the way small / local investors like but think of the alternative…”

    The commercial banks in Barbados have always made their profits from the financing of the importation and selling of ‘cargoes’ to the plantations and more recently to the black Bajan conspicuous consumers.

    These ‘ modern’ commercial banks are mere offshoots from the mainly old Jewish money-lending houses which financed, in the early days when Sugar was then King, the Triangular Trade.

    Since the African angle has been replaced by the North American, Japanese and Chinese export barons what do you expect from the likes of FCIB and BNS.

    Why do you think Barclays Bank ‘DCO’ sold its interests in the “West Indies” including its formerly most profitable gem Barbados?

    Barbados is no longer of ‘priority interest’ to commercial banks as the inflow of forex continues to dwindle and dry up as a result of economic climate change.

    Now, Ms Many posies of nom de plumes, put that in your pipe and smoke it as you watch the once beautiful flower called Barbados lose its social shine as it withers in the sunset of economic success.

  24. T.Inniss Avatar
    T.Inniss

    @ Wily

    Thanks Wily for that contribution.

  25. David Avatar
    David

    The banks have not felt the weight of the default yet, this will come when the decision to extend maturities and rollover principal, reduce rates etc.

    The financial institutions have been impacted years ago with the tanking credit ratings to junk which occurred under the last government.

  26. Mariposa Avatar
    Mariposa

    Says who David! the mechanism of the banking system is situated within a global environment and negative effects are not initiated by a delay or wait and see factors but day to day minute to minute factors and forces which can influence its viablity to perform

  27. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ The Honourable Blogmaster

    Both of us know that the registration of a domain name DOES NOT MEAN that the current registrant was the entity that created and registered it at the 2009 date.

    THe ONLY PERSONS THAT WILL KNOW THAT HISTORY IS ICANN am I correct?

    And the person who bought it heheheheheh for US$677

  28. Well Well & Cut N' Paste At Your Service Avatar
    Well Well & Cut N’ Paste At Your Service

    “But I gots to go now to de sea where Enuff of Lorenzo does send de ole man when I bring up tings dat dem cant gainsay.”

    Lol…don’t mind the Enuff and Foes attempts to discrefit bloggers…in the grand scheme of things and even with a 15 second attention span…he is now aware of who owns whom…as it relates to the dessimination, flow of information AND FACTS.

  29. David Avatar
    David

    There is no need to argue this matter. It is a matter of record from the central bank that the banks have not been lending to government directly or indirectly by purchasing government securities. The pull back is largely tied to the junk rating.

  30. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    And the person who bought it was and is NAMECHEAP is it not

    Registrar WHOIS Server: whois.namecheap.com
    Registrar URL: http://www.namecheap.com
    Updated Date: 2018-01-11T12:53:20.00Z
    Creation Date: 2009-05-29T19:20:03.00Z

  31. David Avatar
    David

    If you wNt to be dispassionate in your role as BU Opposition voice you should be thorough in your prosecution, that is all.

  32. millertheanunnaki Avatar
    millertheanunnaki

    @ David July 22, 2018 8:47 AM
    “@PUDRYR
    Did you check the date white oaks domain was registered?he date white oaks domain was registered?”

    What ought to be followed also is the mongoose trail that leads to a yet unknown connection between the white ‘Oat(k)s’ pie of advisory fees and the now locally resident nibbling rats of white collar kickbacks of the consultancy firm recently formed and going by the title of ‘Avarice & Raw done’ at your Special Financial service.

  33. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ The Honourable Blogmaster

    Your point is taken and I SHALL BE VIGILANT TO DO SUCH.

    Like you reasoned on another thread, and I will precis that statement, “the blogmaster is not god and therefore will not know everything about everything”

    @ THe Sage Anunnaki

    I like that one “the mongoose trail”

    You do know that after this generation “leaves” those subtle nuances and connections will disappear forever?

    The fact is that they can hide and buy land but, IN THIS DAY OF THE INTERNET, and specialist search engines, THEY CANT HIDE AND WUK UM.

    I am sure that you are also, ON SCOPE, for tossing the proverbial pepper into their sauce, but they dun know that you doan play with any of them or us heheheheheh

  34. David Avatar
    David

    The other point to consider is that the Prime Minister will want the BU blogoratti to be searching in feedback because it arms in her meetings with the principals to hold feet to the fire.

    Note your poster about Glyne Clarke was posted to BU wall with some useful feedback.

  35. Mariposa Avatar
    Mariposa

    Yuh think that Mottley going follow you down the same gallows trap that up :(piece) and David had set up for Cahill and govt
    Hell No ! For certain there are many voices which you would be needing in your pursuit to slime White Oak and for certainty none going help you.
    I guess you have this glorious belief associated with the pounding of the chest that your cartoons played a pivitol role in taking the WTE project off the table ( which can be solely placed to be a figment of your imagination) case and point there is no opposition in parliament to give you a helping hand followed by no out side political bandits looking out for their own interest to keep the fire burning followed by the hue and cry by due dilligence who gave all effort into doing his own investigating
    So there you go “buddy” enough koolaid has been served to keep the hungry bellies full all but leaving you on your own
    Good luck. hee heee ha ha
    Barbados has a dictorship large and in charge get used to it
    Even Atherley seems to be in a state of confusion with his decision depending on the time of day or whether the dictator snap the whip across his back
    Heee heee ole man this time around the game is different and the players are well positioned to shut you and your silly cartoons out

    Watch muh now lol

  36. millertheanunnaki Avatar
    millertheanunnaki

    @ Mariposa July 22, 2018 10:04 AM
    “Yuh think that Mottley going follow you down the same gallows trap that up :(piece) and David had set up for Cahill and govt
    Hell No ! For certain there are many voices which you would be needing in your pursuit to slime White Oak and for certainty none going help you.
    I guess you have this glorious belief associated with the pounding of the chest that your cartoons played a pivitol role in taking the WTE project off the table ( which can be solely placed to be a figment of your imagination)”

    The Cahill cartoons depicting a potential disaster equivalent to that of Chernobyl might not have worked out as intended.
    But, clearly, those predicting the fall of the DLP with a forecasted result of 30-0 aka ‘Not even one Ef***ing seat’- (with only two voting boxes as the only balm left in the Gilead of St. John)- were more than just a figment of Piece’s imagination.

    It is also living proof of the sagacity of those whom you used to refer to as the BU prophets of doom and gloom and in whose cult you are now the most visually active member.

  37. TheOGazerts Avatar
    TheOGazerts

    @piece
    Stay on the ball.
    Your submission reminds me of how a 2-year old, 2-man company “Whitefish” received a contract for $300M to fix Puerto Rico electric system after the last big hurricane.

  38. David Avatar
    David

    Do we know the fee arrangement for White Oak? It shouldn’t be a secret if taxpayers will foot the bill.

  39. TheOGazerts Avatar
    TheOGazerts

    Also, one of your links (above) is not working.
    That is one way of damaging your credibility.

  40. Wily Coyote Avatar
    Wily Coyote

    @David

    “banks have not been lending to government directly or indirectly”

    Your correct on one point, banks are not lending directly, however your WRONG ON THE INDIRECTLY POINT, banks have been forced to up their deposit levels from 5% to 20% to Central Bank over the last 18 months which is a considerable $ amount and has been largely responsible for the government’s day to day operations for the last several months.

    MIA’s feet are going to be held to the fire when she opens negotiations with the banks, she’ll be lucky if she only gets third degree burns. GOB has no leverage in negotiations with the Banks and Offshore financiers, they only have some limited flexibility in dealing with the local debt.

    It’s called being between a rock and a hard place.

  41. David Avatar
    David

    Willy understand the point, maybe the blogmaster should have inserted the word voluntarily for the avoidance of misunderstanding.

  42. David Avatar
    David

    Another comment from a TT chat group. Interesting comment given the nexus between the two countries and the heavy concentration of Trini businesses in Barbados. – David, BU

     

    Sometimes you feel as if you are watching a secret tape of the FUTURE OF T&T as the Barbados economic disaster is being played out. When you tell people that the forex reserves are not only for IMPORTS but to also pay foreign debt and the latter will be rising…. they get more serious and look more worried. When you tell them that in 2019 the govt, meaning you – the people, might have to put out hundreds of millions of $US or even more than a billion just to partially resolve the Petrotrin situation then go into denial mode….

    Ask people where the NIF will get $4 billion to repay the principal of the NIF Bond. Some say from the govt (FALSE), some say from the companies (FALSE, the companies have nothing to do with these NIF Bonds, legally nothing), some say they will sell shares (TRUE), and some say that and the interest they will pay from come from the dividends (TRUE)…. and it is of course a damn sure thing since during the term of these bonds there will surely, 100% sure, there will be sufficient dividends to do all that and the shares of the companies will continue to rise, and all these companies will exist, survive, and be there to give you dividends in whatever economic & financial conditions exist in the years to come, even 20 years from now!

    Ask people who guarantees the NIF bonds and some say the govt, some say the companies, some say the assets of the companies, (ALL THE ABOVE FALSE) and a very few say there is no legal guarantee from anyone (TRUE).

    When you tell people a minimal drop in the $TT every year – what they call managed devaluation or dirty float or whatever euphemism they want to call it, not the official rate only but the black-market one which matters more these days – will wipe out all the gains in the NIF bond…

    When you tell people that there is a good reason why the NIF bonds pay higher interest or yield, and that reason is not a "gift or sharing wealth", that corporate bonds are riskier than "safe as gold" Govt bonds and so bonds like the NIF normally give you a premium on Govt bonds…. you take on risk and get a higher yield for doing so….normal in the finance world….

    When you tell people rising interest rates in the US and elsewhere will drive T&T interest rate higher and so the NIF yield that looks great now may not do so in the future….

    When you tell people to also consider the very few strong & well-managed credit unions where you will get better returns as well as other benefits….

    When you tell people to consider buying the shares of the companies and other companies and take less yield but be safer with Govt bonds and even Treasury Bills, rolling them so you will at least get something continuously….

    When you tell people that preservation of capital and preparing for even harder economic times are critical to their future….

    When you tell people that don’t mix politics and money, that is an inflammable mixture that can blow up in your face, destroy the country, that no matter what these political parties do in govt, it is you the people who will pay for it, e.g. CLICO, PETROTRIN, BEETHAM project…..

    When you tell people to consider the risk involved in any investment, decide what amount of risk you want to take, have a diversified portfolio so you can manage your risks, and do not jump into any investment especially in these hard times but think hard and ask those who know and are objective and then decide if you want NIF bonds and if yes, how much you want to invest in it etc…..

    When you tell people that, like being pregnant, there is no partial legal guarantee, and there is no 100% guarantee from anyone for the NIF bonds, and you could lose part or all of your money…… GREED and propaganda trumps CAUTION & FEAR.

  43. Prodigal Son Avatar
    Prodigal Son

    Has anyone read today’s Sunday Sun lead article as yet?…………my God, these dems are criminals!

  44. Enuff Avatar
    Enuff

    Piece

    I feel fuh you. Google the two principals names and debt restructuring. You may even come across a letter addressed to PM Keith Mitchell from a debtor referencing White Oaks. This is no Cahill.

  45. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ The Sage Anunnaki

    You said and I quote “These ‘ modern’ commercial banks are mere offshoots from the mainly old Jewish money-lending houses which financed, in the early days when Sugar was then King, the Triangular Trade…”

    and then you went on to show how Barclays PLC realising that their gem was almost dead, packed up and left.

    The writing, for some of us Sage, is on the wall and can be seen big as a breadfruit.

    Therefore when we say, there is an urgency to supplant the dead sugar cane with another “crop” that will generate new monies, we mean like yesterday.

    TO use the new prime Minister’s words “we need to hit the ground running” with whatever the crop is

    And I am not talking about marijuana or the cousin that certain drug barons have been proposing for cultivation in the Mary Jane Secluded Hostel..

    The unfortunate thing is that, with all the posturing that we are seeing, with this incoming government, with all the INGRUNT ONE UPMANSHIP, that is characterizing their Public relations, one is not seeing anything concrete that will change this around in the LIMITED TIME THAT WE HAVE.

    But we just need to remember that Mia Gots dis.

    https://i.imgur.com/fBGj8Jq.png

  46. Prodigal Son Avatar
    Prodigal Son

    How can anyone with any conscience give a contract to cater for 30 persons for $23000 each Tuesday?

    Even if we say add parliamentary staff and assistants…….maybe another 15 persons……what kind of meals were served for $511 per head?

    And we have the batshit crazy former suckers at the trough on BU talking shiiite daily about the PM defaulting on debt…………my goodness, you people have no shame!

    You yardfowl dems………….. dont think that this money could have gone into investments that would have been there to repay the good Barbadians who according to the chief yardfowl, ac who lent the government their hard earned money? I always knew that the neither Stinkliar or Worrell would have been around when these bonds would become due.

    You dems begged poor Barbadians for a vote and then turn around and gave away their money to their rich white friends………live it up in Parliament eating meals at over $500 over plate.

    #criminals#lock them up

  47. Prodigal Son Avatar
    Prodigal Son

    Over $500 per plate and in the Senate the bill was $17,000 per session…………my God….what criminals…………no conscience at all!

  48. Prodigal Son Avatar
    Prodigal Son

    The QEH is in a perpetual mess…..poorly managed and the director gets $257,129 per year plus $65,000 per year as housing …………the taxpayers are paying the mortgage on his mansion every month.

    You expect these lotto salaries in the private sector……….not in the public sector….hell no. In the meanwhile, doctors could not find paper to write notes on, simple things like gloves, gauge, toilet paper and medicines were hard to find and the director gets more than the PM.

    And the DLP was for the small black man!!!!!

    All these contracts will soon be made null and void.,………..bring the lawsuits after!

  49. NorthernObserver Avatar
    NorthernObserver

    The T&T gov’t, like many others, is just kicking the money tot down the road. As we have learned in Buhbaydus, sooner, rather than later, the piper of debt must be paid. Can you imagine the citizens of T&T paid $20B+(?) to bail out Clico, and the GoT&T is now offering bonds against the income of those same companies the taxpayers already purchased?
    ALL politics. They could SELL the companies, but the price would probably fall well short of the $20B, putting a specific dollar amount on over-payment. And they could no longer milk the expense side of the companies. Even worse, a Bajan company might buy one or two!!!
    Soooo…pile a mountain of debt onto them, and let some future GoT&T deal with matters. Fuh now tings good. Sounds like Buhbaydus of 2016?

  50. Georgie Porgie Avatar
    Georgie Porgie

    RE Prodigal Son July 22, 2018 2:36 PM

    The QEH is in a perpetual mess…..poorly managed and the director gets $257,129 per year plus $65,000 per year as housing …………the taxpayers are paying the mortgage on his mansion every month.

    AND THE JACKASS NOT EVEN A BAJAN.

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