est. 2007

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No Haircut for Old People Says PM Mottley

Extracted from Facebook page SURVIVING OUR HARSH ECONOMIC ENVIRONMENT

The news that the government has taken the decision to rollback on a decision to implement a debt restructure program intended to be broad brush is good news. To have inflected the level of emotional stress on senior citizens whose focus should be enjoying the fruits of their labour in the golden years can only be described as unconscionable.

There is also a conversation in the country that is getting louder about the possibility of citizens bringing a legal motion against government on the basis breach of contract. Such an action is unlikely given the passive deposition of the Bajan and the unwillingness of lawyers in Barbados to take on government with high profile action.

The blogmaster can paint other scenarios where Barbadians were duped to invest in government paper for love of country. There is a large cadre of middleclass that invested in government paper because the law forces the retiree (beneficiary of severance) to favourably consider this option to avoid a cash penalty.

How do citizens whose lives have been significantly altered reconcile the feeling of hopelessness with the fact the country is broke?

 

 

 

 

128 responses to “No Haircut for Old People Says PM Mottley”

  1. Wily Coyote Avatar
    Wily Coyote

    Government restructuring proposal for BAD PAPER has obviously run up against serious opposition and it’s not old pensioners. Commercial Banks are the biggest holders(forced aquisition) of this BAD PAPER and have no doubt told GOB to go fly a kite.

    The first cracks are appearing in the BERT PLAN. WILL BERT SURVIVE THE YEAR.

  2. Tron Avatar
    Tron

    Wily,

    As always, you are correct. We have to look at the BIGGER picture: If some local pensioners can force the gov to withdraw from their plan, local commercial banks and international holders of USD bonds and loans can do the same a fortiori.

    However, we all know that a haircut + reduction of bloated civil service is a national necessity. Even the clueless “educated” masses. Clearly, we are sailing towards devaluation.

    David,

    As predicted. Their is no way out. Barbadians are obviously UNWILLING and UNFIT for any sacrifice and any reform. Like the population in Saudi Arabia and the Taliban in Afghanistan. This rollback will seriously damage the ongoing negotiations with banks holding BBD debts and international creditors holding USD debts and bonds. BERT is already history.

    And what about the SOEs? Do you really think the GOB will reform that monster called SOEs against local resistance? PM MAM is afraid of some pensioners who gambled too much after she won all seats in Parliament. What is next?

  3. Mariposa Avatar
    Mariposa

    Look what govt is doing

    https://www.facebook.com/100005986451739/posts/894274477448759/

  4. FearPlay Avatar
    FearPlay

    And while all of this is going on, BRA is advising that National ID is to be discontinued and a new National ID will take its place administered by BRA. Is this a back door way of imposing tax clearance before a Barbados passport is issued or renewed. This new Mark of the Beast will be required to fill a prescription, open a bank account, apply for utilities, renew a drivers license, admission to hospital, etc. Mark of the Beast indeed. Let’s see how the legal profession reacts to this.

  5. Mariposa Avatar
    Mariposa

    Shi.tt why must the poor person pay with all their live savings
    Not only are these people having to pay with there life savings ….but everything dam else thing govt have added taxation
    Their livelihoods have been instantly all but gone.
    Thanks to MIA

    we got this

  6. Tron Avatar
    Tron

    Wily,

    A formal question is arising as well: Is this rollback a breach of the IMF agreement? If yes, did the IMF consent to it?

  7. Mariposa Avatar
    Mariposa

    Mia needs to find them bunch of one armed bandits that she unilaterally gave millions of dollars in tax waivers and asked of them to pull their weight ….also which includes her father million dollar tax waiver
    Jucking out old people eyes under the guise of patriotism is unconscionable while the scum bag tax cheats got rewarded in tax payers money while they laughed all the way to the banlk

  8. Wily Coyote Avatar
    Wily Coyote

    Tron, good question. Unfortunately present “transparent” government has not published the IMF Agreement details or the overall BERT PLAN. This is no doubt the plan, it’s known as WAFFLE ROOM.

  9. Tron Avatar
    Tron

    Mariposa,

    As told before: PM MAM just has clean up the mess YOU caused. Most Barbadians and especially the pensioners wanted the big welfare states plus free bus drives.They got it.

    Now they are receiving the fat bill for 10 years of national non-development, collective laziness and collective obtuseness. Most Barbadians are still too arrogant to admit that the island is totally broke.

    Your voters behaved like dinosaurs in 2008 and 2013 when they voted for Big Sinck – and the age of dinosaurs is over.

    PM MAM must now make some hard decisions: EITHER going on the weak Barbadian way to appease the lazy and clueless masses, diluting BERT, breaching IMF agreement and leading Barbados a path down to Haiti with devaluation and zero economic growth OR starting true reforms.

  10. Mariposa Avatar
    Mariposa

    Mia talking shi..t about holding the back of the pensioner
    There is no way she can willy nilly renege on the agreement which most likely include govt instruments
    If she does she would be playing with fire which would decrease any further chances wherby the IMF give barbados further access to funding
    Her most likely solution to help the pensioners would to sell Barbados Hilton or to use her terms generically used the Hilton as a credit card machine
    Or even take another look at BNTCL
    Other than those two options her hands are tied to the IMF agreement and the IMF risk of not accessing further funding will be far greater than the sale of those two assets

  11. Dishonest Bajans Avatar
    Dishonest Bajans

    @ Tron

    You are TALKING shite the BLP misled the locals during their campaigning.

  12. Tron Avatar
    Tron

    DB,

    EVERYBODY knew since 2013 that Barbados is 100% broke.

    So what is your solution? Devaluation? Removing 30-40 % of all staff in admin and SOEs (as I want it under my 10-years-plan)?

    You cannot have the peg + high forex reserves + low interest on gov bonds + bloated civil service + low work ethic at the same time.

    Barbadians chose the easy way after 2000 to borrow and borrow and borrow. THe “wealth” of the local middle-class consists of debts and nothing else. The wage hikes for the civil service were NOT in line with any increased productivity, but based on wrong feelings of entitlement. 90% of the forex reserves consisted and consist of borrowed money. The offshore financial sector is dead. Sugar is dead. Expot industry is dead. Tourism already reached its peak. But Barbadians still boast that they deserve special treatment. And nobody wants any change.

    DB, accept how it is. It is no time for false national pride, but for industry.

  13. Artax Avatar
    Artax

    “Jucking out old people eyes under the guise of patriotism is unconscionable while the scum bag tax cheats got rewarded in tax payers money while they laughed all the way to the bank.”

    Mariposa

    Could you please explain how tax waivers given to BOTH owners of businesses and individuals, could be interpreted as they being “rewarded in tax payers’ money while they laughed all the way to the bank?”

    Are you suggesting, for example, if you owed $1,000 in taxes and was given a waiver, instead of your debt being written off……..the tax payers’ GAVE you $1,000 to DEPOSIT on your bank account?

    If I were to follow your line of argument, then the 40 years of tax waivers given to Butch Stewart, for example, could likewise be interpreted as your DLP “rewarding him in tax payers’ money while he laughed all the way to the bank.”

  14. TheOGazerts Avatar
    TheOGazerts

    He went in laughing and came out laughing.

  15. peterlawrencethompson Avatar
    peterlawrencethompson

    @Wily Coyote +@Tron
    My prediction is that the government will get the financial institutions who hold the vast majority of debentures and bonds to go along with the haircut. After it is universally applied, including to the poor pensioners, then Mia will announce a separate program that applies only to pensioners, to ease their pain. It will be done this way so that the banks have a harder time arguing that they were unfaired. The program could amount simply to offering the pensioners zero interest loans at the face value of their bonds with only the bonds as security.

  16. Tron Avatar
    Tron

    PLT,

    Let’s hope so, by goodness!

    As usual – your solution makes lots of sense 🙂 How lucky we are that the Canadian banks cannot move out, since they won´t find any buyers 😉

    p.s. Why are YOU not running the ministry of finance?

  17. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    Mariposa,

    You are a little of the mark here but what the people here are trying to explain to you is this.

    If there are going to be issues that you are going to blame the BLP for DO NOT blame the BLP for anything that the DLP has been originally responsible for

    So when the subject matter is about something like changing the Constitution for Rawdone and McCunny and Wigfittings that is a subject that you have full license to weigh in on and cuss them about

    BUT when you talk about redeeming junk bonds YOU HAVE TO STAY OUT OF THAT CONVERSATION because it is your DLP demons that are responsible for that junkbond status and actually some 23 ojunk bond demotions.

  18. Tron Avatar
    Tron

    The present manoeuvre with the pensioners reminds me of a ship in a heavy storm with too many holes in the hull:

    Capitano MAM on HMS Barbados plugs one hole using the plug for another hole. Since the number of holes is bigger than the available plugs, the ship finally sinks.

    My advice: Crash HMS Barbados onto the reef called devaluation to stop the sinking.

  19. Hants Avatar
    Hants

    I hope that the Government would consider giving back pensioners their money in 3 to 5 years instead of 15.

    There is psychological damage to losing control of your money.

    Older Bajans have been conditioned to believe that government bonds are safe investments.

  20. William Skinner Avatar
    William Skinner

    Whiskey is supposed to drown sorrows. When sorrow starts to drown whiskey- all hope goes.

  21. Tron Avatar
    Tron

    I just had to laugh when I read the latest comments of Jeremy “caveman” Stephens on the haircut. I would like to remind everybody that this is the man who was behind the Arab loan and the man who predicted “economic recovery” three years ago. He is a typical product of failed Barbadian tertiary education.

    So what did he claim?

    “unless Government increased the amount of Government paper commercial banks are required to hold”.

    Is he crazy? More junk in the books and ALL banks run away, leaving the clueless native masses behind.

    “Government would therefore have a difficult time convincing commercial banks, insurance companies and individuals to invest in Government papers in coming years, he said.”

    What an euphemism. Only insane figures will suck such trash.

    “expressed sympathy for pensioners affected by Government’s debt restructuring”

    What a typical weak Barbadian socialist. Never work hard, always live large at other´s expense.

    “He is already forecasting that Government will need to embark on a second round of refinancing if Barbados fails to attract enough foreign direct investment to help ease the island’s money woes.”

    There is NO other institution to borrow money. I repeat: N O O T H E R way to borrow. Gov defaulted on a forex loan AFTER they failed to place new junk bonds on the market. Or what does Jerry mean? Barbados has nothing to sell … Selling Barbadians as slaves to Saudi Arabia in exchange for USD? Everything is possible in the plantation called Barbados.

    What about telling the many lazy laggards in the civil servants that the game is over? What about telling Barbadians that they can put their UWI exams into the rubbish bin? And what about telling Barbadians to sell their many SUV´s and villas??

  22. T.Inniss Avatar
    T.Inniss

    Fearplay

    When was that announcement made about a new national ID?

  23. David Avatar
    David

  24. Lexicon Avatar
    Lexicon

    Hear mah now…wunnah Bajans have fi lie en de bed wunnah mek … cause dis is wat wunnah dah wanted all along… and now dat wunnah gettee… wunnah don’t want tee.

  25. David Avatar
    David

    Barbadians have not had to experience austerity measures from a government since the Erskine Sandiford period. This is nearly 30 years ago.

    Barbadians have become use to the sweet life read conspicuous consumption supported principally by tourism and borrowing. The competitive landscape has changed, tourism has seen many entrants in the Caribbean including Cuba and our capacity to borrow has reduced due to rising debt service ratio.

    What is disappointing is that in the face of what the economic indicators are showing, we have to listen to the same tired narrative driving discussion in the country. When a company is insolvent it declares bankruptcy.

  26. Mariposa Avatar
    Mariposa

    Piece ! as if your comments are supposed to give the pensioners a piece of mind
    Go tell all you said to Mariposa to the holders of govt instruments as a matter of fact i find your comments to be insensitive
    The truth of the matter lies in the failing of this govt who rather use a stealth approach to fix barbados debt and which now lays solely on the backs of each and every person living in barbados which also includes the visitor who comes on a yearly or monthly trek to these shores
    The ramifications coming from the debt default is govt to own and lies squarely in the hands of this govt who chose to default on govt debt

  27. Mariposa Avatar
    Mariposa

    The intellectual narrative of corruption by present govt would raise to a fever pitch level .
    And the ongoing malicious use of pointing fingers away from themselves on this blantant abuse of pensioners funds in order to repay govt debt to international financial institutions
    This dog and pony show administrations has dug itself into a deep hole having the latest show of a parade of 26 or more actors dictating whose savings show be afforded the luxury of paying barbados debt while singing a.” Song call who done it” in the face of old and vulnerable pensioner
    This govt along with its cold hearted minons are useless and worthless
    Barbadians are only beginning to see the awful effects of a Saviour who believes that a 30-0 win gave govt a mandate to do as they dam please

  28. David Avatar
    David

    Are you able to differentiate between domestic and foreign debt?

  29. Fractured BLP Avatar
    Fractured BLP

    https://barbadostoday.bb/2018/10/09/stephen-confidence-in-govt-at-new-low/

    Well looka muh crosses !

    The Snake 🐍 Oil salesman 👨‍💼 that assumed office in Barbados 🇧🇧 on May 24, 2018 promised a lot ……!

    • Within 90 days in office the South Coast Sewage issues ( mind you that the previous BLP government implemented) …..would be fixed !

    That promise was kept …. the SHIT now flowing in the sea 🌊 & beaches are CLOSED !!

    • Within 90 days the Transport Board will have news buses on the road !

    That promise was kept …….actually 40 buses of the current off the road……no new buses yet !!!

    • Within 90 days new SSA trucks will be on the road !

    That promise was kept …. garbage now piled up all across the country not a damn NEW truck in sight !!

    But look here now :

    • A 30 member Cabinet in place – now ….that was not PROMISED !

    • Avinash Persaud is a Consultant – now – being paid $ 25,000.00 a month ( including perks) …that was not PROMISED !

    • Dr. Clyde Mascoll is a Consultant – now – being paid $ 25,000.00 a month ( including perks )….that was not PROMISED !!

    • Pensioners lose all they life investments – now – that MAM to drop the ” Mia Cares ” mantra – that was not PROMISED !!

    Barbados deserves better !!

  30. William Skinner Avatar
    William Skinner

    @ David

    You are the main exponent of the
    “ tired narrative “.

  31. Mariposa Avatar
    Mariposa

    And question to you Piece. If the instruments are / were sold to the investors were junk
    Why is present govt still wanting to hold them to pay debt?
    Also are you prepared to say that govt use junk bonds as a bargaining chip to influence the funding of money from the IMF for Barbados
    And if not are you now prepared to say that present govt is using worthless instruments to repay debt
    A read of present govt narrative on this issue and listening to the utterances meaning to cover present govt a.ss all but suggest such to my questions to you

    And to you David debt is debt
    The use of the investor money to pay debt is unconscionable no matter whose hands receives it

  32. FearPlay Avatar
    FearPlay

    @T. Inniss October 9, 2:22 am

    Fearplay

    When was that announcement made about a new national ID?

    http://www.nationnews.com/nationnews/news/201461/taxpayers-required-register-tax

  33. David Avatar
    David

  34. Mariposa Avatar
    Mariposa

    Oh and another question

    If the instruments are worthless why would govt suggest to a friend of mine to go to a commercial bank and cash them?

  35. Guest Avatar
    Guest

    https://www.caribbeannewsnow.com/2018/10/01/commentary-mottley-more-clown-than-con-a-mix-of-both-perhaps/
    “…Set aside that Mottley’s party platform laid out, what it called an intensive formula for economic recovery, tax-incentives, in addition to stating that it will increase investments based on its strategy, to switch and turn to the IMF within a fortnight after winning office, essentially setting aside what they campaigned on, was not just “run-of-the-mill” politics from the standard mould; but a con-job of the highest order…”

  36. Guest Avatar
    Guest

    https://www.caribbeannewsnow.com/2018/10/01/commentary-mottley-more-clown-than-con-a-mix-of-both-perhaps/
    By Youri A Kemp
    “…laid out, what it called an intensive formula for economic recovery, tax-incentives, in addition to stating that it will increase investments based on its strategy, to switch and turn to the IMF within a fortnight after winning office, essentially setting aside what they campaigned on, was not just “run-of-the-mill” politics from the standard mould; but a con-job of the highest order…”

  37. Wily Coyote Avatar
    Wily Coyote

    @PLT

    I have to disagree with my fellow blogger(Tron) this time, it’s a good job your not in charge of Barbados finances, just another consultatant. Do not assume that the Canadian Banks can be pressured and they cannot leave Barbados. All present Canadian banks in Barbados and Caribbean have already planed and have inplace contingencies for withdrawing from the Caribbean without trying to sell thier portfolios. If a foolish buyer should step forward they’d be gone tomorrow.

    Remember BIG BROTHER IMF is now in charge and directing the SHOW, any missteps and Barbados is going to find itself on the BREAD LINE or controlled by the socialist menace from the east.
    In any case the bad word, DEVALUATION, is coming like it or not.

  38. Tron Avatar
    Tron

    Hey, my remark about the Canadians was a cynical joke!

  39. Lorenzo Avatar
    Lorenzo

    Off Topic,this is for Mariposa ,Fractured J/A and T Inniss ,concerning the Washington University here in Barbados under the tenure of former Minister Jones,now in the news and getting no comment from Mr Jones ,alledgedly saying he is now a private citizen.Tell me what you three who suddenly care about poor people and hardship think about this storm brewing.

  40. Wily Coyote Avatar
    Wily Coyote

    @Hants
    “3 to 5 years instead of 15.”

    Hmm, I guess your anticipating IMF will give more $ for this initiative. It’s SAD BARBARIANS DO NOT UNDERSTAND BROKE, DEFAULT, AUSTERITY ETC ETC.

  41. Wily Coyote Avatar
    Wily Coyote

    @Tron

    Nice to hear someone else has Wilys tongue in cheek sarcasm.

  42. Tron Avatar
    Tron

    As Wily indicated there is a big problem: Barbadians still do not understand that Barbados is BROKE and that the IMF loan is the last chance.

    There won´t be any borrowing beyond that.

    The IMF programme is not about new roads, new trucks, new buses, new SUVs and villas, new hospital, but about SURVIVING, about restructuring existing debts. For those who do not believe me I recommend a trip to Jamaica and Guyana to look at what happens with a country too long on wrong policies.

  43. Wily Coyote Avatar
    Wily Coyote

    @David

    “Are you able to differentiate between domestic and foreign debt?”

    Good question to ask yourself….

    A significant amount of the domestic debt(banks) is “FORCE” held by international financial organizations in the form of security deposits to Barbados Central Bank and these debts are nearly indistinguishable from foreign debt and subject to international leverage. Bajans are listening TOO MUCH to your non informed political leaders and being dragged under the bus one wheel at a time.

    You keep asking when Bajans are going to WAKE UP, the question is a good one, might stop and think about this for a minute with respect to your own perspective. Wily has noted that your over exuberant BLP rhetoric has been toned down in recent weeks. Wily hopes this is the result of your 90 day re-evaluation of the present government performance.

  44. Mariposa Avatar
    Mariposa

    Nice try Lorenzo but this thread is concerning the pensioners money
    Oh ! the pursuit by way of justice would be meted out to the evildoers of that school
    Now i asked of you a question .Do you think it was right for Mia and her 26ministers to tamper with the Constitution in order to deny holders of govt instruments their dues
    Also answer this which of the two issues is deserving of more interset
    The medical school whose wrongs are being handed to the justice system to be taken care and where the law of the land would be applied as an instrument in pursuit of justice for the victims
    Or Mia pursuit by way of injustice to change the Constitution to deny the victims( oldercitizens) acess to their savings

  45. peterlawrencethompson Avatar
    peterlawrencethompson

    @Tron + @Wily Coyote
    “Why are YOU not running the ministry of finance?”
    +++++++++++++++++
    Don’t make me laugh! I hope that this is tongue in cheek sarcasm. The ministry of finance is NOT the wheelhouse steering the fortunes of Barbados… in terms of public policy the direction is coming from the IMF in Washington DC filtered through local mouthpieces only for the sake of optics. The IMF cannot save us from ourselves and neither can ANY government.

    More importantly, the fate of Barbados rests solely with those individuals who are able to create viable and sustainable economic engines that earn foreign currencies and employ their fellow citizens in meaningful work. That is our only viable path, and if we screw it up we are doomed to repeat the dismal century between 1838 and 1937 when the colonial elites re-enslaved us through their monopolization of economic resources. The only difference now is that the colonial elites will be not only of European ancestry, but Chinese as well.

  46. ks Avatar
    ks

    With the over-the-counter service the customer receives from the commercial Banks, one should rightly assume they are planning to pull out! Every type of transaction now take extremely long to be carried out, with slow-moving staff who are experts at avoiding eye-contact.

    RBC Six-X-Roads Branch closed, RBC University Hill Branch closing in a few days….. not many left!!

  47. FearPlay Avatar
    FearPlay

    @ks, RBC was closed a long time ago, they only appeared as if open. Service has been atrocious for a long time…. My mistake, what service?

  48. Tron Avatar
    Tron

    PLT,

    I could not express the problem it in a better way. Most important is that Barbadians endorse change. If I look at Greece, I have to admit that an IMF programme against a government and against the people does not work.

  49. A. Dullard Avatar
    A. Dullard

    @PLT
    “…the fate of Barbados rests solely with those individuals who are able to create viable and sustainable economic engines that earn foreign currencies and employ their fellow citizens in meaningful work. That is our only viable path…”
    ++++++++++++++++
    Well put sir.

    Sadly, there is no real culture of entrepreneurship or sensible, calculated risk taking on the island. Rather than promote and facilitate this mode of thinking, as many obstacles as possible are erected for budding innovators and those who tend to have views different from the prevailing ”accepted wisdom”.

  50. peterlawrencethompson Avatar
    peterlawrencethompson

    @Tron
    The IMF program here is not quite as stupid as the one in Greece, however it is severely flawed.

    If I draw an analogy to medicine (Dr. GP will correct me where I am wrong). Bim is like a patient with severe type 2 diabetes: so we have hospitalised the patient (stabilised government revenue with added taxation), amputated a diseased foot (debt restructuring), and put them on an insulin regimen (SOE restructuring). However we have not addressed ANY of the underlying causes of the disease by changing the patients diet from addiction to sugar (rationalising and reducing civil service wage expenditures to control our fiscal deficit), and convincing the patient to adopt a useful exercise regimen (building self reliance and innovation).

    The current IMF program will slow down the rate at which we are dying, but it will not restore us to health unless we address the underlying causes of our disease.

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