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
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.
The blogmaster invites you to join the discussion.