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Barbados Pushing Back on External Creditors

Some have been following the intense negotiations in motion between the government of Barbados and external bondholders. Whether one agrees with the decision of the Mottley government to trigger SD, the bottomline is that this is where we find ourselves and ALL Barbadians must support the effort of the government through its agent White Oaks…

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Some have been following the intense negotiations in motion between the government of Barbados and external bondholders. Whether one agrees with the decision of the Mottley government to trigger SD, the bottomline is that this is where we find ourselves and ALL Barbadians must support the effort of the government through its agent White Oaks to close the best deal for the country.

Barbados is not the first country to trigger SD and will not be the last, let us get over it. Debt restructure comes in all shapes and sizes, if we breath some life into the economy the opportunity to improve credit ratings will come.

It is unfortunate some members of the political class prefer to nitpick instead of rallying around the flag at this juncture. The decision was made, move on!

White Oak is being paid very well to negotiate the best deal for Barbados. They have done similar deals for other countries and the principals are known to those sitting across the table. That some will want Barbados to cave to the creditors because we are the defaulter and therefore should accept terms offered by the lender is nonsense.

However this blogmaster agrees there is a need to demystify the matter for the average Barbadian to  assist with informing a national debate on the ramifications of a protracted negotiation.

Here is another article planted in the international press by the other side to pressure the government of Barbados.

-David, Barbados underground

Creditors prepare to push back on Barbados debt proposal

June 12, 2019, 05:00:00 PM EDT By Reuters

By Miluska Berrospi

NEW YORK, June 12 (IFR) – Investors are preparing to push back on a restructuring proposal released this week by the government of Barbados, sources told IFR on Wednesday.

After months of discussions with creditors, the government, which suspended debt payments last year, laid out on Tuesday two options for holders of its 7.25% 2021s, 7% 2022s and 6.625% 2035s.

But creditors, which had feared the government would launch an exchange without their consent, said such terms were unsatisfactory.

“We hope that before they actually launch an offer, the government will re-approach us and try to reengage in conversations,” said an investor involved in the process.

“If they launch something we’re prepared to reject it and wait,” he added.

The creditor committee comprising both dollar bond and loan holders are preparing a response for later this week, sources said.

“The government of Barbados has improved the proposed terms as much as it possibly can given its commitment under the IMF-support program,” the Barbados government said in a statement on Tuesday.

In October 2018, the International Monetary Fund (IMF)approved a US$290m bailout for the Caribbean nation.

“We are disappointed that they’re taking the tone that they are. We think it’s damaging to the country and to foreign investment,” added the investor.

Creditors would have about three weeks to respond were the government to launch a formal exchange offer on the options presented.

No payments have been made on outstanding debt since Prime Minister Mia Mottley took office in May of last year.

The country restructured around Bds$12bn (US$6bn) of domestic last October.

https://www.nasdaq.com/article/creditors-prepare-to-push-back-on-barbados-debt-proposal-20190612-00956

 

221 responses to “Barbados Pushing Back on External Creditors”

  1. Tron Avatar
    Tron

    A patriotic report. Could be mine. Quite different from the dagger blows of the ISO Taliban and Barrow´s party.

    Our beloved Prime Minister must now stand firm. She must not be misled by the blue and green syndicate or the traitor Worrell.

  2. Pachamama Avatar
    Pachamama

    David

    ”””””””’ALL Barbadians must support the effort of the government through its agent White Oaks to close the best deal for the country.””””””

    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    We cannot agree with this statement. It is a statement you have often made. And again we seek to push back strenuously against a perceived dictatotial impulse.

    The people of Barbados should only offer support to this or any other government if in their judgement such is warranted.

    That attitude of seeking universal support for painful policies cannot be in the interests of our country for a number of reasons.

    Included amongst these would the need for a thinking public which cannot be or should not be shepherded like sheeple to any particular policy, especially when such policies are undoubtedly painful, like this one is.

    Even at this time of a national economic emergency, what we need most are critically thinking people, providing government with the widest number of opinions, not all of us as blind followers of Mugabe. And we’re saying this as supporters of the said economic policy, as espoused.

    .

  3. David Avatar
    David

    @Pachamama

    Some decisions have to be made such that consensus will never be practical. What must occur is transparency in how the decision was made etc.

  4. Mariposa Avatar
    Mariposa

    I belive the people made a decision for change but not a change that would find the image of barbados being drawn into international courts to pay its debt
    The people have already been subjected to a take it our leave it decisions by this as govt unilteral decision to default on local debt found many bond holders money hijacked by govt to pay govt debt
    Now asking people to bow at the altar of patriotism is more than a little too much

  5. nextparty246 Avatar
    nextparty246

    Hi David:

    There has never been any nit picking from Solutions Barbados. We have repeatedly stated that we hope that the DLP (when in office), and now the BLP, are successful in implementing responsible policies, because if they win, we win.

    Barbados is proposing a significant ‘hair cut’ for external creditors. We should all hope that the external creditors accept it, because if they do, we win. If White Oak are the muscle that we have hired to get them to agree, then fine. We also have no problem with their fee of US$2.7M for the external debt.

    Our main problem is with the local debt. There was no ‘muscle’ required. The Government simply decided to confiscate part of our retirement savings and pensions, and passed a law to make the confiscation legal.

    We had no say in the matter, since our money is managed by the banks and NIS, who voted against our interests. For that, we are paying White Oak an absurd and outrageous US$24M – putting ourselves further in foreign-currency debt.

    We did not need White Oak ‘muscle’ to stare down local creditors on the local debt (that would be all of us). The BLP, with a 30-0 majority, had all of the muscle it needed to force Barbadians to accept whatever they came up with. What part of that do you not understand? This is not insignificant.

    We expect Tron to sycophantly applaud the BLP’s every irresponsible action, and attack anyone he thinks threatens the BLP’s re-election campaign, otherwise he will be in serious trouble. Therefore, his irresponsible comments should always be interpreted in that context. However, we need you to remain independent and provide an independent analysis.

  6. Piece the Legend Avatar
    Piece the Legend

    @ Pachamama the Sojourner

    I was saying the same thing.

    Imagine this is the attitude the BLP’

    He says “…It is unfortunate some members of the political class prefer to nitpick instead of rallying around the flag at this juncture.

    The decision was made, move on!…”

    A man drives a ZR van over your foot and a next man telling you to “Get over it”

    So the BLP ‘s Minister of Disinformation has been assigned the task of forcing bajans to accept lock stock and barrel THEIR VERSION of the trickery and to condition responses

    But you recognised this modus OPERANDUM and are making people aware

  7. NorthernObserver Avatar
    NorthernObserver

    This is like playing darts in the dark?
    why do we need a conclusion tomorrow? Today it isn’t costing us, other than WO is still under contract, and they have already made the lion share of their contract monies.
    I suspect the hope is somebody folds, as keeping together when there are a myriad of debt instruments involved, isn’t easy. Somebody needs closure before another. Somebody has less exposure than another.

  8. CIK Avatar
    CIK

    LUST

    Must we support the negotiations for debt restructuring?
    Absolutely.
    The interest rate on this debt should be in the region of 3.29% not 6% or 7.25%
    Let White Oak and the Government do their job and let us support them 100%.

    What is not being said publically is that one of the demands by the holders of our debt is to try to force the Government to float the BDS dollar. Let us all pray that this is not done as we do not want to pay BDS 6 for USD 1 or like Jamaica JAM 140 to USD 1.

    CUT, CUT, CUT
    To try things around we must increase tourism arrivals and at the same time cut both the food and oil import bill.

    TOURISM
    Tourism increases today are usually socially driven and so everyone can help.
    An quick and easy step for all is to use a smart phone and a social media account and post inviting pictures ( beach, sea, landscape, people) of Barbados at least once weekly. Daily if possible, with hash tags to the http://www.visitbarbados.org site or to local information or specific sites like http://www.barbadosgolfclub.com , https://www.mountgayrum.com/, http://www.barbmuse.org.bb/web/, http://harrisonscave.com/, https://www.stnicholasabbey.com/
    Those who have time can suggest other site for all to refer to.

    Barbados should become the world leader in free and open social tourism marketing by its people.

    FOOD
    Reducing the food import bill means every household growing more in a garden, kitchen garden or fields. This is an easy campaign to sell.

    OIL
    The way to reduce the Light & Power oil import bill is to generate electricity using solar power.
    Give us importation of photovoltaic (PV) panels duty free. Set up courses for small businesses to learn to install and maintain the solar power industry. Help ALL homes – big or small to install PV panels on their roofs, churches, schools, government buildings, warehouses etc

    None of the above are new but need to be repeated over and over again.

    My slogan is simply. “Let us save the dollar” or LUST (the d is silent)

  9. WURA-WAR-on-U Avatar
    WURA-WAR-on-U

    Blindly supporting corrupt governments and their self-serving policies have the MAJORITY population being treated like SECOND CLASS CITIZENS IN BARBADOS by their own wicked governments for over 50 years….when will we learn.

  10. William Skinner Avatar
    William Skinner

    For years on BU all we heard about the mismanagement of the economy and the dangers of multiple downgrades. We heard nothing about patriotism and rallying behind the flag. The Bees mantra was to kick out the Dees.The people responded and correctly did that.
    Today a rush decision by Mottley to suspend paying debts has thrown the country into international embarrassment. We are being told to be patriotic and rally behind the flag. The Dees are saying that the country has been betrayed.
    There is a perverse hypocrisy here. The first fact that we must accept is that the move to stop paying our debts was ill conceived and the negative fall out from this decision was not explained to the country and is only now being exposed.
    It is also extremely ignorant to pretend that the debtor can set the tone and the creditor must agree . It is an arrogant position set in an almost unbelievable delusional mindset.
    This is the exact stupidity mouthed by Stuart when he foolishly asserted that the downgrades were not stopping the schools from being opened and the buses were still running.

    The more things change the more they remain the same.

    Duopoly Rules

  11. David Avatar
    David

    @William

    Where is the hypocrisy? Fair minded people on the blog including the blogmaster asked commenters to give Thompson and to a degree Stuart at least a year to do the job. The criticism came when the DLP, the most incompetent lot to have been elected to government, committed blunder after blunder. Worse of all did not see communication with the public as a priority. Time to let that period be firmly sealed in the political dustbin of history and move on.

  12. William Skinner Avatar
    William Skinner

    @ David
    Move on from where ? Your comments can only be directed toward those who have never moved on from the Bees and Dees. As you know I have long condemned them to the political hell.
    Wherever and whenever I have made it a point almost a mission, to show up the hypocrisy in both camps.
    You chose your words and left them for interpretation. Even your proud defender Pacha took umbrage to how you literally demanded that the populace accept this brazen act of policy ignorance or less be deemed unpatriotic.
    It is you who seem to be eternally trapped in the quagmire of the BLPDLP. It is you who need to move on and see the duopoly for what it is.
    You don’t have the ability to get me involved or become a victim of your staunch defence of the decadent political class. Your guile attempts to divide and rule .You are a defender of all the decadence wrought on this country by these two parties.
    You my dear brother need to move on . Ask Pacha to help you . I know he moved on a long time ago.

  13. Mariposa Avatar
    Mariposa

    David
    Worse of all did not see commuincation to the public as a priority
    ——–”’-”——–

    But were and when has this govt been communicating on this matter and also on the matter of Liat
    Both these issues were being hidden out of the glare of public
    Only to be exposed in outside media sources
    Now public is being told to rally around the flag even when govt has not been transparent on the issue of external debt

  14. David Avatar
    David

    @William

    The blogmaster is a Barbadian first!

    The call to rally was made in context.

    The decision to SD was made, we have to deal with it.

    Bickering about the decision adds nothing to moving the country from the economic precipice we now find ourselves.

    Calling for Barbadians to rally does not suggest we let the government off the hook about transparency etc.

    For the record the blogmaster has an opinion which may or may not be influenced by some on the blog. The fact Pacha has disagreed should mean what ?

    The DLP failed on the job, this can be measured by any KPI you select. The result of the last general election confirms the majority of Bajans agree with this position. Let us rally to rebuild the country. You may want a third party movement to take root, however, last time we checked the seeds of that movement are not showing shoots.

  15. Miller Avatar
    Miller

    “White Oak is being paid very well to negotiate the best deal for Barbados. They have done similar deals for other countries and the principals are known to those sitting across the table. That some will want Barbados to cave to the creditors because we are the defaulter and therefore should accept terms offered by the lender is nonsense.”
    ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    If the “White Oak” is such a well-paid and highly-rated negotiating lubricant why are these “External Creditors” digging in their heels so deeply?

    Is it because they feel justified in demanding their pound of Bajan excessively fat flesh as advised by the doctor De Liar?

    How can the Bajan government ‘beg’ for debt ease or forgiveness when the country continues to live high off the importation luxury hog?

    Why should creditors ease up on Barbados while the country borrows from the IMF to continue the importation of luxury-range vehicles, tap water in plastic bottles, mock hair and false ‘bottoms’?

    Why not make the importers and consumers of these ‘show-off’ goods and ‘bling’ items find their own foreign money instead of taking up IMF-borrowed forex for which the poor are being asked to carry the heaviest burden in the repayment of these loans?

  16. Baje Avatar
    Baje

    It is also extremely ignorant to pretend that the debtor can set the tone and the creditor must agree . It is an arrogant position set in an almost unbelievable delusional mindset
    xxxxxxxxxxxx

    LET ME ADD STUPID AND BACKWARD THINKING TO THE ABOVE.

  17. Pachamama Avatar
    Pachamama

    David

    How many times must we retort that transparency means nothing unless we can then take corrective actions with timely information. A right to recall.

    We renew our trenchant criticism of your oft repeated demand for all Bajans to support any government at any point in time purely under the rubric of a misguided nationalism.

    When you do this you’re sounding just like the neo-fascists now in bogue elsewhere. They pretend a nationalism as well!

  18. David Avatar
    David

    @Pacha

    Transparency in the context of the transaction being discussed. Agree with you if we discuss in the context of governance.

    @Miller

    Do we know what are the issues delaying final agreement?

  19. John A Avatar
    John A

    A closure to this negotiation must come as a matter of urgency. The manner in which W0 dealt with the foreign creditors has caused them to push back and the issue has moved from negotiation to a confrontation. The creditors have not received a cent in 12 months and are now being told not to look for any payment for at least another 12. Pray tell what part of that approach is a negotiation?

    We have been told that what separates the acceptance of the deal by our government is the fact that we would reach our goal 1 year later if we did so. No one has however told us what the risk of not accepting the deal will mean to us long term, if we end up like Argentina and are black listed by the international creditors going forward. Should this occur would the 1 year delay of been worth it?

    White Oak needs to be told by the government to settle the deal now, before we as a country reach the stage that the international market views us as unsavoury to do business with. If you read between the lines they are already hinting at that . As for WO they need to realise that every gravy train must come to an end, say thank you for the $85000 USD they have gotten monthly for doing little and now bring this matter to a close.

    In closing let me say it has nothing to do with rallying around a flag blindly like sheep. Any banker will tell you if you run into trouble with a loan still pay something, regardless how small till the loan can be renegotiated. That was not done here. Thus started the bad blood which was further brought to boil when the said creditors learnt the astronomical amount WO were being paid. The said payment which indirectly came from them.

    If for argument sake you had a tenant who told you they couldn’t pay their rent for the next 6months and begged for an ease, only to then bring a brand new Toyota and park it in your driveway how would you take it?

    The old Bajan saying of ” what start wrong end wrong” is therefore applicable here.

  20. Miller Avatar
    Miller

    @ Pachamama June 17, 2019 8:30 AM
    “We renew our trenchant criticism of your oft repeated demand for all Bajans to support any government at any point in time purely under the rubric of a misguided nationalism.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++++

    And what makes this jingoistic call to rally around the flag of pure Bajan financial mismanagement so hard to heed is the fact that the persons who benefited most from these lavish foreign loans are still not being asked to pull their weight and contribute more to the national collection plate to aid in the country’s fiscal recovery.

    Why are ‘ordinary’ land tax owners being made to cough up more to bail out the fiscally-challenged government while a man who promises to build an imaginary hotel drives around in a ‘big-able’ duty-free Mercedes bought from overseas with some of the same money borrowed from the same foreign creditors the government now want to paint as big bad wolves.

  21. John A Avatar
    John A

    @ Miller

    Well said sir

  22. David Avatar
    David

    @John A

    On what basis can a payment be made if negotiations are ongoing?

  23. John A Avatar
    John A

    @ David.

    If we can agree that the intention was to renegotiate a loan and not permanently default on it, what could have been done is a smaller good will payment could have been made with the understanding the payments would be lcredited to the new loan agreement.

    This works daily say when one uses an overdraft facility with a company. If you are renegotiating the overdraft for what ever reason, one would still pay the retainer annual fees for the facility so as to stay in good standing with the bank. It’s standard practice in business daily for this to happen.

  24. David Avatar
    David

    @John

    A new loan agreement has to be consummated to facilitate payment. By defaulting the old terms do not apply.

    Note also WO will be negotiating based on brief received from government.

  25. Wily Coyote Avatar
    Wily Coyote

    When our or by the time “beloved” BLOGMASTER wakes up to the fact these “negotistions” are but a GAME OF POKER and the OFFSHORE lenders have a HAND OF ACES. The other fly in the ointment is the new lender, IMF, have added new rules to the POKER game, however the OFFSHORE lenders and Barbados are playing by the old rules and have not agreed to the new IMF doctoran.

    Guess what the outcomes likely go be, OFFSHORE lenders are going to stand FIRM, IMF IS GOING TO STAND FIRM, BARBADOS losses and the Mickey Mouse $ will no longer be excepted even in Monopoly.

    SOVERGIEN DEFAULT BECOMES SOVERGIEN FAILURE.

  26. John A Avatar
    John A

    The whole reason for hiring white oak was for them to ” negotiate ” a restructuring not dictate one!

    Had they used an approach like what I suggested the door of negotiation would have been open to go from there. Instead they went the road of strong arming the creditors by saying ” not a blind cent for 24 months and if wunna don’t like it too bad.” I really don’t see how that approach could encourage negotiation when they in turn drew $85000USD a month.

    I keep saying they are too many similarities with how WO is handling this matter and how Argentina dealt with their issue for it to end well, if further protraction of a settlement occurs.

  27. David Avatar
    David

    @John A

    Why do you believe that WO is not negotiating? The fact that it is taking time is a feature of a tough negotiation.

  28. John A Avatar
    John A

    @ David.

    ” white oak is not negotiation on briefs from government”. REALLY!

    Well they better dam well remember them working for government and if they are told to close a matter and they don’t do so then just fire dem ass.

    That is a ludicrous statement and flies in the face of logic as it implies employee can refuse to see the demands of the employer through. If that is the case then termination is the next option.

  29. John A Avatar
    John A

    @ David

    Taking time is one thing but what is the fallout to this? These creditors are being asked to ” wait while we take our time, oh and wunna ain t getting a cent in the meantime”. How could that approach benefit anyone in terms of a negotiation?

    Also I would love to hear what “progress ” has been made as the said creditors have complained they have not been communicated with properly and not 1 single loan has been restructured to date with the said creditors.

    If that is progress please define failure for me.

  30. David Avatar
    David

    @John A

    No one is knocking your concern for the country to close with external creditors. The government has said publicly the kind of deal they want with the creditors is critical to the stabilization plan. All negotiations are done within parameters by both sides. It is not unusual for wedge issues to surface in hard negotiations. A year is long we agree, let us hope WO can do what they are being paid handsomely to do.

  31. John A Avatar
    John A

    Not only that they do it but that it be done without long term fall out to us as a country. Because of their approach if we end up being blacklisted by international creditors as was done to Argentina, then the whole foreign debt restructuring would be no more than a long term financial disaster for us.

    People need to understand the serious crossroad we are at now with this matter. If WO makes the mistake and takes the wrong turn now we will pay a massive price for it in both the medium and long term availability to favourable financing.

  32. Miller Avatar
    Miller

    @ David June 17, 2019 9:45 AM.
    “A year is long we agree, let us hope WO can do what they are being paid handsomely to do.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

    The Judicial Manager(s) were also paid handsomely to do for CLICO what WO is being paid just as handsomely to do for BrekBados.

    Dr Deliar Worrell has already disclosed the inevitable outcome of these protracted negotiations. WO is just stalling the inevitable status of the Bajan dollar:

    Devaluation is the only way of bringing Bajans to their home base of commonsense by forcing them to live within their means.

    The “Wily Coyote” has put it snugly in a nutshell as to what lies ahead when he posits:

    “@ Wily Coyote June 17, 2019 9:24 AM
    When our or by the time “beloved” BLOGMASTER wakes up to the fact these “negotistions” are but a GAME OF POKER and the OFFSHORE lenders have a HAND OF ACES. The other fly in the ointment is the new lender, IMF, have added new rules to the POKER game, however the OFFSHORE lenders and Barbados are playing by the old rules and have not agreed to the new IMF doctoran.

    Guess what the outcomes likely go be, OFFSHORE lenders are going to stand FIRM, IMF IS GOING TO STAND FIRM, BARBADOS losses and the Mickey Mouse $ will no longer be excepted even in Monopoly.

    SOVERGIEN DEFAULT BECOMES SOVERGIEN FAILURE.”

  33. David Avatar
    David

    @Miller

    You would have heard Minister Straughn last week admitting that an ugly sum was paid to the judicial managers?

    He further revealed that the former government disobeyed the recommendation to liquidate. Instead the matter was tossed to the courts.

  34. William Skinner Avatar
    William Skinner

    Finally some now understand the difference between nationalism, patriotism and senseless political party posturing.
    Finally……..,,,

  35. John A Avatar
    John A

    @ William

    I have said on another discussion that the foreign debt restructuring is the single most important issue that Barbados has to now confront and I defy any party loyalist to tell me different based on what is at risk.

  36. john2 Avatar
    john2

    @John A
    Why do you believe that WO is not negotiating?

    @ JOHN A.
    It was a question not a statement. cool down!

  37. Miller Avatar
    Miller

    @ David June 17, 2019 10:14 AM

    Minister Straughn also promised there will be ‘harsh’ penalties on those SOE’s which fail to submit annual reports with their audited financials as has been required Law for donkey years.

    On whom would these penalties be imposed? The politically appointed yard-fowls to sit in the Big Chair of these Boards or the CEO’s who are also politically-appointed chickens?

    It would be interesting to know what is the ‘current’ status of those same SOE’s reports for the financial year ended March 31, 2017.

    Why can’t the same Minister Staughn shed some light on his efforts to collect the thousands of dollars not yet collected on the vehicle assigned to a ghost called Sales Director of an imaginary Hyatt hotel?

  38. john2 Avatar
    john2

    Note also WO will be negotiating based on brief received from government.

  39. John A Avatar
    John A

    @ John 2

    My response was to point out while they work at a snail’s paste the creditors are being hung out to dry.

    If they are working, be it at a snail’s paste why is it that a year later not 1 single foreign loan has been successfully rescheduled?

    To say they taking their time is therefore a gross understatement. Being a tax payer I am by extension stating my dissatisfaction with their performance as my employee.

  40. john2 Avatar
    john2

    @ john A

    Sovereign default
    The failure or refusal of a government to pay back its debt in full. It may be accompanied by a formal declaration of a government not to pay (repudiation) or only partially pay its debts (due receivables), or the de facto cessation of due payments. Also called insolvency.

  41. John A Avatar
    John A

    @ John 2

    Also if they are negotiating on brief received from government then government needs to come out and explain why they are deliberately dragging their feet on this matter.

    Either way we the people need an explanation today and not tomorrow.

  42. john2 Avatar
    john2

    I assume that ALL the creditors will have to abide with the terms of the final agreement.
    like the local creditors all got the same terms.

  43. John A Avatar
    John A

    @ John 2

    I can therefore draw only one of 2 conclusions based on what has been said.

    Firstly WO is receiving directions from government to settle which they are not following.

    Secondly they are not settling because they are not receiving instructions from government to do so.

    Either way seeing that as a tax payer I am in fact employing all of them I need to be told what is the hold up.

    Do we have a situation where WO has been advised to do so and are not? Or do we have a situation where WO have advised government to settle and they have refused?

    Either way we want to know!

  44. john2 Avatar
    john2

    John 2

    You do not negotiate in public.
    How do you know they are dragging their feet?
    Are the creditors also dragging their feet with their push back?

    We all would like this chapter of our history to be over ASAP but do you know how long it takes to negotiate something like this?
    I was informed that it took over a year for grenada to restructure it debt.

  45. William Skinner Avatar
    William Skinner

    @ John A
    This discussion is following the same trend , when it was argued that we actually told the IMF what we wanted and how we wanted it. The gullible were brainwashed into believing that we told the IMF the terms while begging them to assist us.
    Same today more brainwashing: we can now tell the people we owe how are going to settle the debt.
    You owe me money and you telling me how you’re going to pay me and I can like or lump it.
    If you dismiss this approach as pure hogwash you are being told that we are all Barbadians and we need to rally around the broken trident.
    Well let’s be frank here : Refusing to pay debts is really in the same boat as multiple downgrades.
    Six and half dozen.

    Duopoly Rules

  46. Vincent Codrington Avatar
    Vincent Codrington

    A classic example of a straw man. Somebody is going to get “huff”. Let us hope it is not the citizens of this country. Pardon the mixed metaphors. The more the monkey climbs the better he is exposing his “Rs”.

  47. john2 Avatar
    john2

    John A.

    Last info I read was that government had “sweetened” the deal offered to the creditors.

    I don’t know how you are jumping to a any party advising another to “settle” as yet.

  48. David Avatar
    David

    @William

    Your last comment is a disingenuous one. All agree that negotiating with external creditors is complicated. The general public for obvious reasons is not plugged into the challenges being managed at the table. All agree we need to close the deal but unlike the local debt restructure the external was always going to be a challenge. A mistake Mia made was to set expectations that it was a routine transaction.

  49. John A Avatar
    John A

    Regardless to the excuses , sorry reasons for failure to meet a settlement it is irrelevant to the foreign creditors as they have been told fellows ” wunna ain’t seeing a red cent for 24 months ” . Indeed a good approach to negotiation some might argue who support rallying around the loyalist flag at any cost.

    Let me ask you one final question. If you lend a friend a $1000 and he promises to pay you and don’t what should happen next? Would you prefer he tell you that ” I going pay you when I find money”? Or would you prefer he says look ” I going pay you $50 A month and when I get money pay the balance off”?

    By your own admission in your comment of 10.54 you stated that to address the ” due receivables ” was also an option. Why therefore could a good negotiator not encompass an approach that could of done both?

    Sorry can’t except the argument that better could not have been done. It did not have to be an all or nothing approach.

  50. Hal Austin Avatar
    Hal Austin

    @ John 2

    It took Canada seven years to negotiate a trade agreement with the EU. This will give you an idea.

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