The Caribbean Development Bank in its 2018 economic review supports the economic approach the Barbados government has taken. The optimism is ‘premised’ on a favourable tourism performance, the opening of Ross University School of Medicine (RUSM), continued implementation of BERT supported by private sector projects in the pipeline – the possibility of external shocks a possibility.
See report:
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“On the downside, tensions in the United States of America and Europe (BREXIT) could dampen growth prospects.”
++++++++++++++++++++++
The CDB is radically understating the external risks. The US commercial real estate market could well be on the edge of a precipice… the iconic Chrysler Building in New York just sold at an 80% discount. https://edition.cnn.com/2019/03/08/business/chrysler-building-sale/index.html The collapse of US commercial real estate values will wipe trillions of dollars off of corporate balance sheets and severely impede their ability to invest. It will also have the effect of contagion in Europe and Asia.
Our most significant single tourist market is the UK, but their asinine self-inflicted BREXIT delusions are certainly going to cause huge damage to their economy. It is not unreasonable to expect that our British tourist arrivals will be cut in half.
Peter the 18 people killed this year may also have a negative effect
According to the engagement letter available on Parliament’s website, Government has agreed to pay White Oak Advisory Ltd US$85 000 (BDS$170 000) per month to help Barbados navigate the situation.
Many factors influence the level of crime in the country, the blogmaster decided to highlight the CDB report to bring some focus on the importance of creating a stable economy. Where the hopes and aspirations of Barbadians can be satisfactorily addressed.
RE According to the engagement letter available on Parliament’s website, Government has agreed to pay White Oak Advisory Ltd US$85 000 (BDS$170 000) per month to help Barbados navigate the situation.
SO THEN WHAT IS THE PURPOSE OF THE PRIMEWICKER, AND HER CABINET OF MINISTERS AND ALL THEIR CONSULTANTS? WHAT DO THE PEOPLE PAY ALL THESE JOKERS FOR?
SO THE DUCHESS OF YORK MARCHED THE PEOPLE OF BARBADOS UP AND DOWN TO BECOME THE PRIMEWICKER …………….AND NOW SHE AND HER FORTY THIEVES DONT HAVE A CLUE OF HOW TO PUT HUMPTY DUMPTY TOGETHER AGAIN?
WUH LOOKA WUH BUHBADOS COME TO LORD!
Georgie Porgie
Really makes you wonder why the bloated cabinet and extra consultants.
@GP
The official position is that restructuring debt- especially external- is highly specialized. Do we agree?
The last huge global collapse of the economy lasted 16 years, from 1929 to 1945, so we still have 5 years of misery ahead of us. At least. Or in biblical sizes: 14 golden OSA years and 14 hunger years. This shortens the dry season until 2022. 3 years left.
MR KING SIR
Man I only know bout cricket, Bible and medicine, man……..and a few other things that I can see and understand.
Is why you want to hurt my poor old head wid hard questions like how to spell cow; you mean you could not give me a likkle word like mosquito?
Good sense seem to dictate that debt restructuring is a highly specialized area especially foreign debt. The more important question is whether the exercise was successfully completed and whether there was transparency in the selection.
Come on man
Another set of smoke and mirrors talking points hoisted on vodoo economic
The realities lies with the evidence happening on the ground
Not Good
Imagine we had about seven years of LOCAL RECESSION under the last government and not a peep out of the economists etc…and now it seems they have all awaken.
David
It’s a wait and see ain’t it. Wait to determine if White Oaks was worth it and see if the heavy price we shall pay for all of this measures up to the sacrifices of those who are now on the breadline.
Did you get what I sent you, David?
“The official position is that restructuring debt- especially external- is highly specialized. Do we agree?”
No. At least not as specialized as it is being made out to be.
The REVENUE side of the CBD report raises questions, attributed to ‘several new offshore companies reporting for the first time’ amidst taxation rate changes compliments of the OECD. IBC’s will come and go, it is the total which is relevant.
Govt’s always SPEND well, it is their revenue which frequently falls short of projections.
The forecast predicates a working BLP doing what is necessary to provide deliverables. Person such as SSS and Georgie Porgie would do well to speak the truth.
@SSS
Yes!
@All
Mia says to judge her by what her very large team will be able to save and being able to haul the economy back on an even keel.
We will see.
PM Mottley and her misguided economic advisors taking BDS $ 185,000.00 a month to pay White Oak ( or is it Old Oak …..sounds like drunkenness ) …….to tell her government how NOT to pay the creditors ALL THEIR MONEY her government legitimately owes them !!
Can FRAUD…..be so legitimise ???
Oh yes……when there is a DESPOT in control !!!!
Barbados deserves better !!!
hastag Sir
here is the truth……………………the whole truth……………………and nuttin but de truth Sir
SO THE DUCHESS OF YORK (i.e MIA MUGABE MUTTLEY) MARCHED THE PEOPLE OF BARBADOS UP AND DOWN TO BECOME THE PRIMEWICKER …………….AND NOW SHE AND HER FORTY THIEVES DONT HAVE A CLUE OF HOW TO PUT HUMPTY DUMPTY TOGETHER AGAIN?
WUH LOOKA WUH BUHBADOS COME TO LORD!
THE WRITING IS ON DE WALL
AND IT AINT GRAFITTI
LORD FORGIVE MIA MUGABE MUTTLEY
FOR SHE KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
SSS
Thank you David. More coming.
Hashtag
What is the truth? To not see Barbados do well again? All I want from Rogue-Works is openness, transparency and fairness. Not onesided servings. Not taking care of her family needs so they can be exalted Not changing the constitution for her good pleasure. And not flipping-well giving people tax breaks so her father can get out of a bind. So continue on your way mister mister or misses misses. The SSS already got one preying sweetie, and he is puff enuff.
@ Tron March 18, 2019 8:51 AM
It took a world War started in Europe to end the 1929 economic depression. Maybe we need something on that scale to speed the end of this one? From my viewpoint the limp away from the car crash will take much longer than the 16 years it took back in 1929. Maybe we need another major conflict where you pick sides or end up dead?
Good sense seem to dictate that debt restructuring is a highly specialized area especially foreign debt. The more important question is whether the exercise was successfully completed and whether there was transparency in the selection.(Quote)
????????? Words of wisdom.
SSS and Georgie Porgie
You both have no respect for the efforts of Prime Minister Mottley. There is more in achievement in her so far than what the DLP purported to be good economic management. We are better of for what Miss Mottley has done so far and she deserves a chance to be proven otherwise. The nonsense that passes for intelligence coming from you both is reprehensible and demeaning. You may not have to like Miss Mottley but you can be respectful and present some truths once in awhile. The BLP can be blamed for many things, but they are putting plans in motion to right the wrongs. Give her a break and stop spreading propaganda and conjecture. SSS, your posters are pathetic.
@Norther Observer
Is there a best practice a government should follow regarding how to manage debt restructure when SD is triggered?
“The official position is that restructuring debt- especially external- is highly specialized. Do we agree?” Thus the need for White Oak Advisory Inc and preferably not Angustora “Old Oak Distilleries Ltd”?
My basis question is this. Suppose White Oak Advisory Inc, cannot ink a deal. As far is i know the vulture capitalist like Morgan Stanley specialise in “Just Saying No”. As they are holding all the debt cards;
Look at how Argentina feared against those of that ilk when they were confront those that wanted back all their money as they were not interested in no haircut or barbering expeditions on offer.
So are we prepared as a country if these foreign debt holders just say “No”? Then we will more than like need the “Old Oak” by the barrel to drown or sorrows and face whatever reality comes next?
(quote)
Is there a best practice a government should follow regarding how to manage debt restructure when SD is triggered?(quote)
Is Old Oak Advisory Inc(OOAI) considered an experienced firm? What is the reputation of the organisation? What is the track record? Who were the other contenders that the MAM administration considered before awarding “OOAI the contract?
As they are authorising spending the ppls money we the ppl would like those small questions answered.
Just asking
Does gov’t need the help of White Oak to shaft creditors and default on obligations of up to $1 billion?
Of course not.
But if White Oak helps govt to sell and manage the shafting of creditors and bring some closure to the issue then the White Oak fees are but a small price to pay, from the govt’s perspective.
@sirFuzzy
We have two issues with this White Oakes issue then?
-Was the selection process transparent?
Greece used specialists in their restructure, Grenada, Belize, St.Kitts and many others; but Barbados should turn to BU consultants, who specialise in everything, to renegotiate the debt payments. Sigh.
@enuff
Responsible to the valid and legit concerns I.e. transparency and track record.
@ Dullard,
There are a number of unanswered questions. The White Oaks agreement is dated May 30, the election results were declared on May 25. Was the BLP in talks with White Oaks prior to the general election? Who made the introduction and was an introductory fee paid to that person? Did Prof Persaud have any professional contact with White Oaks prior to May 25? If so what? Why is the agreement written under the law of England and Wales and in US dollars?
i aint no economist but dis is what I know YA DONT DEFAULT ON YOUR BILLS……..YA DOES PAY DEM DE BEST WAY YOU CAN!
IF YOU OWE A MAN 1$, AND ANOTHER 2$, AND ANOTHER 3$ AND ANOTHER STILL 4$ AND YET ANOTHER 20$………..AND SOME HOW YA GET 10$ PAY DE FELLAS YA OWE 1$, 2$, 3$ 4$ TO, MEK THE 20$ FELLA WAIT, NOW YA GOT 4 FELLAS OFF YA TAIL INSTEAD OF 5 AND ONLY ONE MORE TO PAY. IT WORKED FOR ME. BUT AS I SAID i aint no economist
AS A DULLARD SAYS
Does gov’t need the help of White Oak to shaft creditors and default on obligations of up to $1 billion?
Of course not.
THE WRITING IS ON DE WALL
AND IT AINT GRAFITTI
LORD FORGIVE MIA MUGABE MUTTLEY
FOR SHE KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
LIKE HAL AUSTIN, MIA HAS MUSCLE IN HER BRAIN
WHEN MIA RECIEVES A STIMULUS INSTEAD OF FIRING A NERAL RESPONSE VIA A LONG TRACT, SHE CONTRACTS A MUSCLE……………AND BITES! mURDER!
WHEN HAL AUSTIN RECIEVES A STIMULUS INSTEAD OF FIRING A NERAL RESPONSE VIA A LONG TRACT,HE SHITES
MIA BITES
AND AUSTIN SHITES
MURDAH WUHLOSS
TWO PEES IN THE SAME POD
The below is taken from their website.
Principals
Sebastian Espinosa, Managing Director
Sebastian has more than 20 years’ experience advising governments and central banks around the world on complex financial matters, and has led teams advising the sovereign debtor on many of the sovereign debt workouts taking place in the emerging markets in recent years. His clients have ranged from Ecuador to the Dominican Republic, Grenada to Iceland, and Pakistan to Seychelles. Prior to co-founding White Oak Advisory, Sebastian was a Managing Director with Houlihan Lokey’s sovereign advisory team and, before that, a senior member of UBS Warburg’s sovereign advisory practice. Sebastian started his career with The Economist Intelligence Unit and Fitch IBCA.
David Nagoski, Executive Director
David has provided advice to a host of sovereigns, ranging from Serbia and Jordan, to Iceland, St Kitts and Nevis, and Belize. A former official of the US Treasury and the European Bank for Reconstruction and Development, David is a co-founder of White Oak Advisory and has developed an unrivalled expertise in debt sustainability analyses and the execution aspects of complex sovereign bond restructuring operations. David holds graduate degrees from Harvard University and Dartmouth College.
Enuff March 18, 2019 12:07 PM
Greece used specialists in their restructure, Grenada, Belize, St.Kitts and many others; but Barbados should turn to BU consultants, who specialise in everything, to renegotiate the debt payments.
OFF COURSE NOT ENUFF
BUT ARE YOU SAYING DAT WE SHOULDA FOLLOW OTHER PEOPLES FASHION?
WE COULDA DO DIFERENTLY SINCE WE DOES PUNCH ABOVE WE WEIGHT, ah lie? .
enuff THE WRITING IS ON DE WALL
AND IT AINT GRAFITTI
LORD FORGIVE MIA MUGABE MUTTLEY
FOR SHE KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
LIKE SHE NEEDS VOO DOO
LIKE SHE EATING AT LOU LOU
AND DE PEEPLE GOING BOO HOO
@ Hal Austin March 18, 2019 12:10 PM
It is obvious that all these plans were worked out long before the election – under the direction of the then Minister of Finance, Chris S. You don’t start such a big action from one day to the next.
The old government had exactly this plan – or even a combination of haircut and devaluation. We shouldn’t be taken for fools. Those who are now yelling on BU against the government have been working towards that. Or who do you think Freundel S. always visited when he was in the USA? Certainly not his aunts, but the IMF and other institutions.
If we tortured and tickled Mariposa on the rack with rum, she would confess exactly that. Wouldn’t you, Mariposa?
In any case, the few cents for the aid are very well invested in the negotiations for billions. Compare this amount with the idiotically high interest on the CS loan.
@ Tron,
You may say that, I couldn’t possibly.
RE Hashtag March 18, 2019 11:34 AM
SSS and Georgie Porgie
You both have no respect for the efforts of Prime Minister Mottley.
THAT IS VERY VERY TRUE
There is more in achievement in her so far than what the DLP purported to be good economic management.
SEEMS YOU COMPARING GOAT SHIT WID SHEEP SHIT
WHATS THE DIFFERENCE?BOTH ARE SHIT!
MIA MUGABE MUTTLEY SHE KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
We are better of for what Miss Mottley has done so far and she deserves a chance to be proven otherwise.
MIA MUGABE MUTTLEY HAS DONE NOTHING SO FAR BUT POO POO
WE GONE FROM THE FRYING PAN INTO THE FIRE
DLP OR BLP SAME TRICKERY SAME POVERTY OF IDEAS
The nonsense that passes for intelligence coming from you both is reprehensible and demeaning.
DEMEANING IS THE TRUTH
I HEY HAVING FUN DOING IT
BUT MIA MUGABE MUTTLEY NOT HAVING FUN——–SHE DOING SERIOUS SHIT!
SHE IS A MIS FIT IN FASHION AND IN FUNCTION!
HEAR THE CHORUS
MIA MUGABE MUTTLEY KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
You may not have to like Miss Mottley but you can be respectful and present some truths once in awhile.
POOR YOU
I AM VERY PRESENTING THE TRUTH ALL DE TIME
HEAR IT AGAIN
MIA MUGABE MUTTLEY SHE KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
The BLP can be blamed for many things, but they are putting plans in motion to right the wrongs. Give her a break and stop spreading propaganda and conjecture.
HEAR THE CHORUS NE MORE TIME
MIA MUGABE MUTTLEY KNOWS NOT WHAT TO DO
EXCEPT POO POO
SHE IS BARE BOO
@ evaone?
What is the guarantee that we will have these loans renegotiated. The debt holders have al the cards. Also who says that the original debt holders have not sold their debt to other parties etc. They having purchased the debt at a discount have less motivation on accepting a haircut. Remember what happen to Argentina and some of it debtors??
The new government has done nothing but hire a debt counselor. In addition, this advisor should restore the confidence of the international financial market, which had been destroyed by the previous government.
We needed such an advisor already in 2013, when the parliament approved the usurious credit of CS and FCIB. In 2013, amateur actors from Barbados were involved, who knew as much about finances as the dog about cooking and hardly had enough money to buy toilet paper. Now at least we have professional external consultants.
Simply view it as a ticket to the international financial market or as a legalized form of corruption. The end justifies the means here.
Smoke and mirrors eventually turning into a towering inferno
@ Hal Austin March 18, 2019 12:42 PM
The same was true of the almost 30 downgrades by the rating agencies. These ratings are communicated to the affected parties in advance. And afterwards everyone pretends to be totally surprised.
Or why did Chris S. always say that he had ” anticipated ” a downgrade? There is more truth in it than mere rhetoric.
re Simply view it as a ticket to the international financial market or as a legalized form of corruption
ok TRON WE ACTUALLY GOING WID a legalized form of corruption
WHAT ELSE CAN YOU EXPECT OF MIA MAO MUGABE MUTTLEY THE PRIMEWICKER AND DICTATOR
. The end justifies the means here. WHY SHOULD THE END JUSTIFY THE RACE SIR?
Hashtag
You got to be smoking a joint from Mia. You want me to respect this rogue? She showed no respect to the Barbadian people when she said, Daddy must be exalted and mommy must follow. Show me where her father deserves a frigging knighthood. Show me his contribution to Barbados besides being a popular, controversial family? Respect what. The moment she did that shite, pardon debts, and left the DLP who she accused of corrupt unscathed, she went from perhaps a change in my heart as a hopeful, to the stinking piece of work I know that she is. For your sake, I hope she turns around the economy because the first charge of thieving, skulduggery, cost overruns and controversy coming out of her camp, I coming with guns blazing. Tired of these politicians taking advantage of the people the moment they beg for ya vote. Why the ass you do not go and ask her what happen to looking into the DLP bad financial management ya pooch licker. You mean them gone clear with the people money. Thank God for the USA at least we got one and can feel happy.
If it was not serious- the external debt restructure – it would be funny to know that former Governor DeLisle Worrell is representing the bondholders.
The creditors follow the standard procedure for such cases. Only on the island this has not yet spread. They have bought the experts with the deepest insight into the local finances. It is now impossible for the government to lie to the creditors in any way.
And you know what: Worrel’s dismissal was therefore a huge mistake. If the man were still head of the central bank, you couldn’t just buy him.
Every five-year-old knows how to proceed here, but not Chris S. from Black Rock. It is his fault that the creditors are now at an advantage. That’s the way it is when you operate on the international stage. You always hire several law firms and consultants from different corners to torch them for the other side. And vice versa you hire all insiders from the opposite side if possible.
This is not the usual chatter in front of the unsuspecting voters or in the church. This is the bloody reality when you challenge the international financial market. We need expertise on the side of Barbados and not chatterers and braggarts who just ventilate hot air as usual.
That is why the current government’s approach is good and correct.
What is the guarantee that we will have these loans renegotiated. The debt holders have al the cards
There isn’t.
There is no guarantee that any international creditor will accept the terms offered by the B’dos government and not pursue whatever is contractually owed to them in an international court.
In fact, the Dullard would be very surprised if this is not the course of action taken given the ultra low interest, high volatility environment currently.
We were told weeks ago by the prime minister and minister Caddle that the negotiation with external bondholders was advances. We look forward to an update on Wednesday.
David
The government made that decision to suspend payments and appoint White Oak in about a week. Should they have gone to tender? Sometimes we get so caught up beating ‘transparency’ that we loss all sense of pragmatism. The transparency on this instance is the laying of the agreement in Parliament and making it available on the website. Track record? WO represented St.Kitts and Grenada our neighbours. Pick sense from nonsense.
The ship is the ARA Libertad, a training ship owned by the Argentine navy.
And now it’s been seized. By a hedge fund. While it was docked in Ghana.
Why? Because Argentina is in a long legal battle with the hedge fund Elliott Capital Management, which has been trying for years and years to get Argentina to pay a 2001 bond it owes in full. Because recently won a court judgment saying that Argentina owes it money, it was able to get an injunction from the government of Ghana saying it’s entitled to take the ship.
The above happened to Argentina. However when u apparently owe debts to the Chinese they just come in and get you to lease away the property? I am wondering if any part of the silk road passes trhu the Caribbean especially Barbados.
@enuff
Have no problem with the process and pragmatism you mentioned. The issue is assuring the public adequate due diligence was done on the vendor.
The blogmaster invites you to join the discussion.