Barbados Government and External Creditors Announce Agreement

The BU intelligentsia has been following the external debt restructure talks with a keen interest. A press release issued late last week confirmed that a deal was reached by the Government of Barbados and the Barbados External Creditor Committee. A good news story.

Unfortunately the press release does not list the finer details of the agreement. We hope the final agreement is completed without event so that the country can settle down to the enormous task ahead.

Here is the press release.


502 comments

  • @DAVID

    “Unfortunately the press release does not list the finer details of the agreement. ”

    Can you give a few items of the finer details you think need clarification?

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  • peterlawrencethompson

    Jeremy’s last comment was his most pertinent… “… the debt restructuring doesn’t really fix anything, believe it or not.”

    Liked by 1 person

  • peterlawrencethompson

    Barbados needs a private sector revolution. We need the private sector to be earning at least another US$250 million per year in foreign exchange.

    Like

  • More like shuffling the chairs on the deck
    Can’t wait to hear Mia explanation during budget speech on how this grand scheme would be paid for
    As now the pain of paying back the IMF has barbadians pushed to the limit.Now add to the mix are the external creditors and over a year nothing is being said by govt about creating growth
    This is a long road to haul wont wish this haul on my worst enemy
    Over fifty years of15 billon dollar debt to be paid off in a shorter time span
    Go figure

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  • For those of you who may be interested it’s worth taking a look at what is happening in Lebanon. The similarities with Barbados are evident. The only difference been that the masses have now taken to the streets after eight years of frustration.

    https://www.aljazeera.com/news/2019/10/lebanon-protesters-streets-gov-leave-191020171622869.html

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  • @Wily

    Jeremy touched on it in the video and John A has been raising it all the time – we have to start paying back loans/obligations now we have a deal in the short term and medium term? We have to start earning now.

    Liked by 1 person

  • Well let’s see what White Oak did for their $27M USD in fees. We will break it down in simple bajan terms below.

    According to the statement we restructured $500 million USD in debt from an average rate of roughly 7.4 percent a year to 6.5 percent a year so that is 0.9 percent saved or = $4.5 M a year over 7 years or 31.5 M in total interest.

    Now they say they get the foreign lenders of the $500M to write off 25% rougly of the debt so in theory that is the 25% of the $ 500M which is another $125M saved correct? No cause wunna ain’t read the fine print which says ” this includes past due interest, principal and penalties”. Wunna remember the 18 months Persaud ain t pay them a cent, well the fellows pick all that up now and throw it in the $25% them forgiving! So them find a way of charging we back for wasting 18 months of them time by including it first in what they forgiving. So much for Persaud and them saying don’t worry bout it LOL! So the $125M may only be around $80M in true forgiveness after the fellows add back the 18 months wunna ain’t pay them a blind cent. So let we say= 80m principal roughly

    Sound real good still right so all hail White Oak but let we go back to the small print. Let’s say we repaid 50% of a 100M dollar loan and the rest we was going to repay next year at 7.5%. The fellows say no we like you all so much we going now give you 7 years to repay it at 6.5%. Lord so instead of paying 7.5% for one year we now paying 6.5% for 7 years compunded on that 50% balance!

    So in closing the banks will more than make back the 25% roughly they forgave in interest over the next 7 years. So right off that saving we would of paid WO $27m to save us in real terms is based on $31.5M in interest from paragraph one and roughly $80M in principal from paragraph 2 being saved, Totalling roughly $111.5M

    Now mind you that is assuming the bulk of the loans still had like 5 years left in them, if nuff was due in 1 to 2 years the interest payment would of done then too. So if now you taking them over 7 yeArs at 6.5 that $111.5 m in savings going drop further.

    Wait I forget to deduct WO $27M from the $111M in savings so 111-27 = $84M in net savings if the loans restructured were not due within say 24 months. If they were Lord 7 more years interest in we tail at 6.5% instead of the 7.4 % for just 2 years!

    Did Mia have an option, probably not in terms of cash flow to debt service. Will we be burdened with increase taxation as Jeremy suggested to carry these finance cost? Yes no doubt.

    Finally what happening with the rest of foreign debt over and above the $500M, that standing as it is? They are many questions that still need to be answered here but I leave the Koolaid drinkers and party faithfuls to sing ” all save the queen” and the rest to squabble over if it was the D’s or B’s fault.

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  • Have the maturity tables been shared with public?

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  • Haven’t seen them nor do I expect to as it may not be politically beneficial to do so.

    The savings and true cost are dependant on the cost of extending the liability at the 6.5% over the protracted period. If the liabilities were due shortly, the extended loans will in fact cost us more in the long run. The problem is we don’t have the cash flow to pay them now, so we have to bite the bullet and pay the interest over the longer period. As Jeremy says it is that unspoken cost that is the elephant in the room.

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  • Vincent Codrington

    @ John A at at 8 : 30 PM

    Are you saying it is a lose /lose situation that we ended up with when you did the Mathematics? Please do not respond that is a rhetorical question.

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  • @ Vincent

    You too bad! Lol

    Liked by 1 person

  • @ Vincent.

    The golden unanswered question is what is the new interest total cost over the 7 year extended period at 6.5% compared to the old interest cost under the old loan agreements to their maturity.

    Don’t hold you breath for those answers though.

    Liked by 1 person

  • With the external debt reportedly agreed, the Government needs to start looking beyond BERT for an economic growth plan.

    It is long past time that the PM’s promise that all ideas must contend be kept, and for the BLP to actually review Solutions Barbados economic growth plan – or continue with the unnecessary austerity.

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  • Any one who thought that it would be easy sailing for this country has to be living in a fool’s paradise. A country with only one main source of foreign earnings (tourism), which has been living above its means for the last fifty years, now that the chickens have come home to roost, has to experience very harsh times. Greece a member of the EU, (depends like Barbados on tourism) experienced corruption on a scale similar(some may disagree) to Barbados and as a result has suffered greatly. Greece has more going for it than Barbados and it is finding things to be very rough. The public needs to be told that recovery is about forty-fifty years away. As a matter of fact, if something isn’t done to diversify and increase income earning foreign exchange, recovery might never occur. There has been plenty of talk about more hotels, but what if one cannot get tourist to come? What about competition from Cuba and other low cost destinations? I feel very sad for the young; my generation has messed up things.

    Liked by 1 person

  • Vincent Codrington

    John A

    It is amazing .
    I recall dpD opining that Finance was not complex only the mathematics that deals with derivatives. Here it is that we have a relatively simple problem in numerical analysis as it relates to fixed income securities and we appear to have got it wrong.

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  • @ Vincent.

    So true my friend. It is good politics though to only tell the part of the story that sounds good. Remember when we were saying that 18 months delay that Persaud said was no big thing was going to come back to bite them in their tail? Well it came back and bit complete with interest and penalties!

    I would bet you a drink next cropover after you sing, that the total amount we now owe after the foreign restructuring inclusive of principal and interest, even after the 25% right off, is greater than the amount we owed in total interest and principal prior to the foreign debt restructuring based on the old maturity dates.

    You want to take that bet?

    Liked by 1 person

  • @ Vincent.

    Got to also say that regardless of what people say about Dr Worrell he came out on top here for the creditors. He gave Persaud a 26% discount on the debt, then took back 45% roughly in interest over the next 7 years on the discounted amount and that don’t include the new committal fees etc either!

    Say what wunna like, the Doc still got a few balls left to bowl so congrats to him.

    Liked by 1 person

  • I thought i saw Mia gushing what wonders have been performed in the last 17 months, of course while omitting what great suffering those destructive “wonders’ have and will continue to wrought on the most vulnerable and will eventually trickle…UPWARD…

    Naturally only fowls believed her.

    i can’t stand politicians, never could, they lie with impunity and have no shame.

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  • I am unsure we have nearly enough information to do calculations.
    One of the “Committee” was quoted elsewhere “this was the final piece in the puzzle”. We also know this “Committee” represented ?????? [>50% of Eligible debt…. Bloomberg stated in June it was 55%, and their claim was, $700M Bonds + loans and other debt]. This leaves a large amount of debt which has not yet been negotiated, and we are unsure of the precise composition of what debt lies within each category. This “Committee” was involved in more than just bonds.(final piece)
    Further, back in May when the FT ran a piece, the quoted complainant was from Invesco and a committee member. I see no Invesco mentioned, so did some of the original group (external committee) bail?
    While ‘good news’, there still appears to be some way to go. There is no ‘threshold level’ like with local debt, which forces any of the remaining debt holders to accept what the Committee has.

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  • “Over fifty years of15 billon dollar debt to be paid off in a shorter time span”

    Brilliant.

    Liked by 1 person

  • Let us hope local media steps up and ask the right questions instead of taking a press release as presented. A read of the press statement gives the impression the Committee represents all external creditors.

    Liked by 1 person

  • In another blog here de ole man was castigated by one Walter the he Beatchhhh for speaking and calling bloggers Peeple and Sheeple

    Here is a blog which goes to underscore precisely what de ole man has said AND WILL CONTINUE TO SAY.

    Here we have the minds of 4 People of estimable financial intellect BREKKING DOWN THE HIGHFALLUTING LIES ABOUT WHICH THE HONOURABLE BLOGMASTER WAS PREVIOUSLY CONGRATULATING HIS BOSSES!

    In fact de ole man noted his congratulations in the other article and said that I would wait for de big guns to weigh in.

    And now you have.

    John A, Mr. Vincent Codrington, Wily Coyote, Northern Observer

    “…but let we go back to the small print. Let’s say we repaid 50% of a 100M dollar loan and the rest we was going to repay next year at 7.5%. The fellows say no we like you all so much we going now give you 7 years to repay it at 6.5%.

    Lord so instead of paying 7.5% for one year we now paying 6.5% for 7 years compunded on that 50% balance!…”

    I, ole boar or piece uh de cock yeah tight HAD BEEN BELLOWING LOUD about the absolute lack of DIVERSIFICATION SKILLS of the BU PUNDITS like Adrian Loveridge and Walter Blackman

    And while it might seem that I’m singling out the two of these BU BLOGGERS, mine was an intent to underscore the fact that BERT and Mugabe will fail because IN ADDITION TO THE ENTRENCHED CORRUPTION AND TEIFING, there simply is no diversification strategy!!!

    Here we are seeing an 18 month redistribution of the deck chairs of The Barbados Titanic while Mugabe Mottley is singing her version of “NEARER MY GOD TO THEE” as did that ill fated crew on April 15th 1912!!

    But de Mugabe poochlickers CANNOT SEE THE ENVELOPING WATERS because they have their lips firmly applied to the adipose lips of the Dictator in Chief!!!

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  • @ the Honourable Blogmaster

    Your assistance please with an item here that is contrary to all the posts of adulation per the financial prowess of this Sleight of Hand Mugabe administration thank you

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  • I have 2 simple question to ask of ALL THE FINANCIAL INTELLECTS HERE.

    How much money does tourism and other things make every year?

    And what income will Barbados have to generate, EVERY YEAR, FOR THE NEXT 45 YEARS, to service our current debts AND ALSO MEET THE OPERATIONAL COSTS OF RUNNING OUR ECONOMY?

    Just 2 simple questions for the experts here

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  • @ John A,
    We would be better of discussing what measures we can take to prevent our government from stealing from us and squandering our resources. All of these fancy loan deals will be of no assistance to our long term survival. Someone has to put a stop to this wholesale banditry.

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  • @ Piece,
    Will there be enough water resources to feed both the growing numbers of tourists and the local population which is set to rise if Mia has her way.

    Liked by 1 person

  • Poor you, unable to post a comment minus ad hominem or slurs. What does it say? Should we not be happy that this matter will close for obvious reasons? Didn’t Jeremy in the video posted say the same thing while issuing his concerns. Did the President of the BEC earlier in the day expressed a similar view but took the opportunity to voice concerns re growth? Do you see this as a binary issue? Barbados is in some deep dodo and the only savior is to find opportunities to earn!

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  • And, being dat it is you blog you don’t need to post that either.

    You have no idea how to effect real agitation for change do you?

    You look at this based on clicks, and you see my clicks as being popularity, and ego tripping, and swell headedness

    Do you, in your 12 years of experience AND ARMED WITH YOUR REFERER TRACKING, think that I truly do not have other things to do?

    What is your mirror image David King?

    Are you seeking to be A MIA MOTTLEY MAN or a Barbadian?

    Do you comprehend what my posts achieve vis a vis that of Grenville the Iso TALIBAN?

    What are you seeking David King?

    Are you seeking to wake up our sheeple and bring them to the side of the peeple?

    You think we as a RH peeple got the luxury to do this with this intellectual masturbation that you are now implementing on BU?

    You cant see how many people deading pun de roads as a result of the inaction at the top of Broad Street and perpetrated by the importers pun de other side of Broad Street?

    Gu long my man, moderate my comments, um is you ting!

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  • @ the Honourable Blogmaster

    Your assistance please with an previous item here about the Moolah Posturer that you bigged up in your post at Oct 21 3.33 am

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  • @John

    “So in closing the banks will more than make back the 25% roughly they forgave in interest over the next 7 years”

    Its not the banks that will benefit from this, its the Consortium that BOUGHT the debt from the Forgiven Debt Holders, ie: the banks & ?

    Generally agree with your analysis of the situation, as David says there are a few DETAILS yet to be announced or documented. The bottom line is that the DEBT will now have to be PAID BACK SOONER than in the original agreement. The only two positives Wily sees in this agreement, 1. Foreign Debt Holders have now cleared this debt from their books, and 2. Government of Barbados has gained some LIMITED maneuvering time in that new debt repayments start “5” years in the future, plus receive future agreed funds from IMF. This looks good for political/press propaganda however in practical terms its just a band aid over a festering sore that’s getting worse. To coin Davids new phrase “Barbados is in some deep dodo”.

    @ Piece the Legend October 21, 2019 2:58 AM

    The answer is “NOT ENOUGH”, Barbados never have and never will survive solely on Tourism Income at their present live style.

    The present Magabe government had NO/LITTLE choice in this matter, they should not be pitied but chastised as this whole situation was SELF GENERATED by POOR MANAGEMENT and Corruption.over an extended number of years. Wily could see the hand writing on the wall some 15 years ago, however the political the ostrich’s continued to bury their heads in the HARD CORAL. The situation is now DIRE and the Armageddon is NEAR.

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  • Remember, even with debt restructuring, bajans need to stop importing (buying) crap, especially food crap and produce more. Where are the local furniture producers, the clothes manufacturers, aside from those excellent ones that make the school uniforms?

    It does not have to be driven by large businesses, but cottage businesses are enough. Ten or twelve seamstress shops can do a lot and employ a good number of people.

    Back to basics. Produce locally, import less. That is how Barbados was built.

    But the banks need to be willing to lend small businesses money for equipment etc.

    An economy is not made up of silos, but of everything working together.

    Debt restructuring is just a first step, the next one is not building the debt back up, while paying it off.

    Liked by 1 person

  • On the other side One of govt policies was to lower taxes for business as an enticement to bring more foreign investment to our shores
    Looking back now after the debt reshuffing has been done it makes wonder to know if govt should not have waited before making such a giant leap

    Liked by 1 person

  • Bajans need to MAKE LESS CHILDREN…do not bring innocent children on to the earth to FEED THESE BEASTS…

    ….let the beasts LEAVE the island and go LOOK FOR REAL JOBS…they are parasites in the lives of BLACK PEOPLE.

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  • @ Crusoe, our debts will continue to rise if we do not put a stop to the looting of public funds by the usual suspects. We need to address this matter first as a society before we can take the next baby step.

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  • Lower borrowing? Reduce the debt? Why? Have you seen and counted the number of new Jaguar’s, BMW’s, Lexus and Mercedes SUV’a on the road? Who said that Barbados was foreign currency starved?

    And what about the number of entertainment events with a $250.00 VIP price tag? Surely a country that is allegedly in debt coils not afford that kind of spent. Go figure.

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  • Surely a country allegedly in debt could not afford that kind of spend. Go figure

    Liked by 1 person

  • TLSN October 21, 2019 6:32 AM

    “@ Crusoe, our debts will continue to rise if we do not put a stop to the looting of public funds by the usual suspects. We need to address this matter first as a society before we can take the next baby step,”

    Well worth REPEATING.

    The PEOPLE have to rid the island of the THIEVES/PARASITES in the parliament and bar sssociation AND the PARASITES/THIEVES in the MINORITY BUSINESS COMMUNITY…or the island CANNOT MOVE FORWARD.

    even those on the outside looking in can clearly see this..

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  • @ Wily Coyote October 21, 2019 5:04 AM
    “The present Magabe government had NO/LITTLE choice in this matter, they should not be pitied but chastised as this whole situation was SELF GENERATED by POOR MANAGEMENT and Corruption.over an extended number of years. Wily could see the hand writing on the wall some 15 years ago, however the political the ostrich’s continued to bury their heads in the HARD CORAL. The situation is now DIRE and the Armageddon is NEAR.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++++++

    Well said, WC! A great piece of analysis of the Bajan political economy.

    A good window of opportunity to perform the surgery needed to stem the spread of the economic cancer was indeed available 5 years ago as outlined in the MoF December 2013 statement of economic and fiscal structural adjustment.

    Now the country is feeling the full effects from the pain and ill-health of that failure to follow through with the proposals outlined in the statement of mere intent.

    Barbados is just full of talking buttheads pretending to be policymakers.
    Only an injection of commonsense and action from an overseas source might save these jokers from themselves. And we can easily speculate as to whom or what would be the foreign decision-maker called the lender of last resort.

    As another blogger highlighted in his or her most poignant observation (FearPlay @ October 21, 2019 6:34 AM):

    How can Barbados continue to import SUVs and other high-end luxury vehicles as if they are the last coming off the production line while millions in real hard currency are owed to foreign lenders and possibly some invoices overdue to suppliers of imported coconut water in tetrapaks and stale pipe water in plastic bottles?

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  • You do mean SAVE THE PEOPLE AND ISLAND FROM ALL OF THEM..

    I notice the fowls fid not jump

    “Barbados is just full of talking buttheads pretending to be policymakers.
    Only an injection of commonsense and action from an overseas source might save these jokers from themselves.”

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  • I noticed the FOWLS…did not jump out to CUSS or REFUTE anything Stephens said….they are problably hurting their empty heads trying to figure out what to tell me next…ha!!!!!

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  • Corruption can be defeated if there is a will to destroy it.

    BREAKING NEWS

    “One of the world’s leading fund managers has been forced to resign after the BBC discovered he had broken investment rules.

    Mark Denning helped to manage more than $300bn (£229bn; €265bn) of investors’ money at Capital Group.”

    https://www.bbc.co.uk/news/business-50089887

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  • @ Wily

    Yes we have bought time but at the price of now owing more in principal and interest combined over the next 7 years than we did before the restructuring. Basically we have kicked the debt can down the road and bought some time.
    Our reality was we had no real choice as we couldn’t meet our payments anyhow.

    I still want to hear how much other debt was not rescheduled as the statement speaks only to $500M USD. There is clearly therefore other debt that we will now also have to find the money for as well, which may be 20 year old commitments now coming due.

    As an island we better start increasing our foreign exchange earning capacity quickly, or as you say we in deep dodo!

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  • @ Wily

    You know the old saying Banks never really lose is so true here.

    The banks will book the 26% debt forgiveness which also includes the 18 months of interest and payments they didn’t receive and use that to reduce their tax liability. So in real terms they lose nothing there. They will then give us 7 years at 6.5%/yr interest and make 45% roughly in profit on the net amount after the discount they gave.

    WO will walk away with $27M for themselves and we the Bajan Public will end up owing more in principal and interest combined than we did before the restructuring, even after the 26% discount is taken into account.

    So basically it’s a win for some and a loss for us. We must also realise the fault is not that of this government. The debt can that others kicked down the road just happened to stop at Mia’s feet. Just as the can she has now kicked down the road may stop at some one else’s feet in 10 years to come.

    Lord what a price this little island will now pay for years of financial mismanagement.

    Liked by 2 people

  • So after all the song and dance from the spinners the foreign debt holders come away with an increase in PV and a reduction duration?

    Or is the Dullard missing something?

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  • Jesus take de wheel. The usual vapidity for the most part.🤫

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  • @ Dullard

    No sir you just about summed it up correct. You want their loans restructured no prob, you will now pay more interest over a extended period. That along with what ever new fees they charge for renegotiation etc.

    The old saying was always money comes with a price. The longer you borrow it the higher the price.

    But what was our alternative?

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  • I would say the best way of summarising it is we manouvered using the little space we had and got spanked for the 18 month delay, which was taken into account first in the 26% debt forgiveness. This therefore severely reduced the amount of real physical debt we were forgiven.

    Secondly Dr Worrell and his side represented their clients well and ended up making up the 26% discounted debt and more with the 7 year Loan at 6.5%. To him I say a job well done even though we ended up paying the price.

    Look let’s be honest to walk away saving money we would of needed a debt forgiveness in the area of 45%, or taken the 26% and then borrowed over the 7 years at roughly 3.8% and we knew neither of these would ever of happened.

    So let’s take our licks put it behind us and start earning more foreign exchange as of today in all ways possible!

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  • All said and done A spining wheel of debt
    When would it end i guess in another fifty years
    Btw the squatters were promised 25thousand.
    How msny are there in number

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  • @ TLSN

    Sorry for not getting back sooner, but yes we have to now pay much closer attention than ever before on how we spend and where the money goes. We have found ourselves kicking debt down the road as we couldn’t pay it. The only ways we can fix this is to be more prudent in our spending while at the same time earn more Fx as we go forward.

    Liked by 1 person

  • @ Northern Observer,

    I have deliberately kept out of this discussion partly to see how it flows and partly because there is very little I can say. But, it proves a point I have been making for some time. We interpret everything politically. I have been waiting for even the academic economists to comment on this event, but there has been little light.
    Our media have once more been found short. Again, it is not in the interest of the Trinidadian owners of the Nation to appoint, or train, a proper financial journalist so that in cases of events such as this we can get a mature conversation.
    Finally, I can see the fingers of the keyboard warriors ready to scream, why don’t I offer such comment. No. I am out. All I will say is that this is a Ponzi scheme and the government has been brow-beaten in the negotiations. What value has White Oaks added? Has any government minister or adviser benefited in anyway from this deal? Remember, it is an agreement in principle. Still someway to go.

    Liked by 1 person

  • Vincent Codrington

    @ Hal at 10:29 AM

    You have said it all. You have said a lot. What else is there to say that has not been said on this Blog from the day the Strategic Default was declared?

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  • @ Hal

    Well said and that is why I too only outlined the facts and fall out based on data. I will not enter into any discussion on the Bs or D’s or who did this or did that.

    Like you I agree we were out manouvered by Dr Worrell et all and badly punished for the 18 month delay of payments and grandstanding some did. Other than that I hope we can discuss the facts and leave the party loyalty and yardfowlism out of the discussion.

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  • @ Vincent Codrington,

    Your expertise would be appreciated but not in ( (Latin, Greek , Histories of Greece And Rome ). lol

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  • @ Enuff October 21, 2019 9:40 AM
    “Jesus take de wheel. The usual vapidity for the most part.”
    +++++++++++++++++++++++++++++++++++++++++++++++++++++

    Instead of ‘blaspheming’ your way out of purgatory why not examine if Hal Austin and Vincent Codrington could advise your administration regarding the settlement of the country’s overseas debt obligations.

    Why not use the foreign reserves sitting idly in some foreign currency account to settle the interest payments and principal repayments under the old arrangements instead of shooting in the dark by putting future generation of Bajan taxpayers into eternal financial purgatory.

    The question to be answered, in the final analysis, is whether the taxpaying residents of Bim would be faced with a bigger ‘overall’ debt bill in NPV or real forex terms under the negotiated ‘new’ arrangements.

    Should your’ new’ BLP administration have bitten the foreign reserves bullet and pay the vultures what was the original dues instead of going the debt-default route while saving US$ 27 million in fees paid and payable to the ‘drunken’ peddlers of bullshit called the old White Oak with your slick-talking professore walking away with his cut to be shared with his university mate(s).

    Liked by 1 person

  • “Barbados is just full of talking buttheads pretending to be policymakers.”

    who hire questionable “consultants” and even more questionable 2 men teams at taxpayer’s expense, pay them millions of dollars to do work 3rd year university students in SPECIALISTS PROGRAMS can do…ha!!!

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  • Miller
    Boss I ain’t no expert, but listen to what the same Jeremy Stephens, that the experts in here sought to belittle previously, have to say from anout 6:00. A read of a previous thread on this blog titled “Does White Oak Have A Plan B?” is instructive about the BU personalities.

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  • @ John A
    @Vincent

    I am not trying to deny the political aspects to this event, the most important of which is our obvious democratic deficit. This is a matter that should have been raised in parliament and a proper debate ensued. That is the weakness of a 29/1 parliament.
    There is also another issue, which is the media. There is method in the Trinidadian owners of the Nation’s madness in that by depriving its editorial team of a proper investment (and freedom) is not just to increase profits, if any, but unintentionally, by depriving the Barbadian public of information is, ipso facto, to weaken our democracy.
    We still want to know the impact of BERT on long-term standards of living in Barbados, on household pay packets, on job opportunities, on young people’s life chances, on so-called economic growth, and how is that measured, etc. This is the price of ignorance. A heavy burden to carry.
    There is no economic logic or coherence in the hysterical, hand-waving, evangelical, proselytising speech making that seems to hypnotise so many sensible Barbadians, but that is not good policy making. It is humbug.
    Plse note the good behaviour clauses in the agreement in principle – both in the default and BERT. The negotiators have tied our hand by linking the two separate events..
    By the way, the prime minister, the appropriate minister, attended two of the meetings. What value did she take to the meetings, and what did she take away?.

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  • @ Hal

    Like you I am amazed at the fact that an opposition that wants my vote has done such a piss poor job at breaking down the small print on this restructuring. As for the press, as we have said before they are a dismal failure good only for promoting fetes.

    The team on the side of the lenders have definitely tied us up well here and again I commend them for doing their job. As for the details of the unrestructured debt I personally do not expect to hear any more on that, just as I don’t expect to hear the new liability inclusive of interest at 6.5%/7yrs as compared to the old pre agreement liability. That just wouldn’t make for good politics.

    So basically the mouthings of a few nuisances like you Vincent, Wily and myself will not break the vow of silence being held on the full picture. Thankfully some of us can extrapolate enough from existing data to form an informed opinion.

    Liked by 1 person

  • @ Mr Hal Austin

    Hal

    You asked and I quote

    “…By the way, the prime minister, the appropriate minister, attended two of the meetings.

    What value did she take to the meetings, and what did she take away?…”

    While for many this will seem as if I am joking I AM BEING DEAD SERIOUS WHEN I ANSWER.

    All she brought was a deep male voice emanating from a female? body.

    And you need to understand what such a manifestation means Hal.

    In all eastern fighting disciplines there is a cry that focuses “the chi”

    And that my friend is central to disrupting the state of mind of the enemy much like the final cry of the army of Joshua at the Walls of Jericho. It is natural resonance and speaks to metaphysical vibrations that are purposed to disrupt.

    And what did she take away?

    Does US$27 million at least sound familiar to you?

    By the way, has anyone seen part two of the White Oaks agreement?

    Oh dear, de ole man disclosing secrets dat only certain people supposed to know heheheheh

    Like

  • Vincent Codrington

    @ Hants at !0 :50 AM

    Please do not underestimate the value of the Classics in my understanding of the Black- Scholes – Merton Model nor the machinations of political minds.

    @ Hal

    I think John A and I understand fully your positions on these two matters. It is the lack of transparency that is infuriating. Unintentionally, we do get some trickle downs such as the application of stochastic processes in the Strategic Default Model.

    Like

  • @ “John A” aka Walter

    Up until today, you kept you two identities separate and did not commingle them.

    Up until today, you were unbiased and made no statement of political bias in your customary pelucid opinions

    Up until today all of your insights were not partisan

    So why did you have to say AND DE OLE MAN QUOTES

    “…Like you I am amazed at the fact that an opposition that wants my vote has done such a piss poor job at breaking down the small print on this restructuring…”

    Is that utterance true?

    Or, does not a careful look at the Facebook page of the People’s Party for Democracy and Development not put you lie to rout?

    It becomes evident that you, not content to have lost a Seat As Leader of the Opposition, Now are committed to destroy that Party!

    Few here realize that Walter.

    Were it not for the campaign here on Barbados Underground YOU WOULD HAVE BEEN THE LEADER OF THE OPPOSITION!

    That is why you hate me so much AND CAN NEVER RECONCILE WITH ME, even in this virtual space!

    Of a truth Walter, I know that you are a brilliant man BUT MY GOD HAS SHOWN ME YOUR SPIRIT and therefore it was not possible to “let you slip pass”

    Like

  • @ Vincent.

    Very true and if we could only get the support of the press in breaking down the data into small bites so that all can grasp the severity of our problem, that would go a long way.

    How can we expect our people to understand and support something when vital information is withheld from them? This must be presented to them in simple terms so it can be absorbed. Yes we can try and do our part on this blog, but where are the opposition, the press, UWI and the all the rest?

    This is what really vexifies me!😊

    Liked by 1 person

  • @ pieces.

    First I am not Walter although we have similar views on many issues.

    Secondly not every body looks at Facebook pages but many read the Nation. If the paper does not publish their views then buy a full page and print it. I am not on Facebook so I would never of seen it.

    Simply state in the press “Party Xs break down on restructuring. ” Just make sure and stick to facts and don’t wAste our time with political brownie points.

    If you want me to read your view publish it in the press, be it either the Nation or Barbados Today. If you can’t afford that then ask David for little space here.

    Like

  • You both use the plural pronoun, it’s “your signature” and rebuttal style.

    You are both brilliant accountants John A. and your understanding of our economic challenges is legendary.

    But your “form factor” is unmistakable and your progression of points is the same.

    Your response was quickly goaded from you but I promise to leave you alone because Noyone can fault your competencies here Walter.

    Like

  • We still want to know the impact of BERT on long-term standards of living in Barbados, on household pay packets, on job opportunities, on young people’s life chances, on so-called economic growth, and how is that measured, etc. This is the price of ignorance. A heavy burden to carry.

    @Hal

    A member of the BERT monitoring committee is one Ms. Wellington, managing director CIBC First Caribbean who said the following in September 2018

    ““Events such as these demonstrate that we in the financial services industry remain confident in both the motor services industry and in our economy and our ability to develop offers and solutions that are tailored specially to them,” said Wellington.

    “Our strongest message to you our clients this evening is therefore, that you need not place your aspirations on hold even within a climate of economic uncertainty because we are committed to helping you achieve financial success,” she said.

    FINANCIAL SUCCESS is OWNING A CAR according to Ms. Wellington

    That such a person with a clear conflict of interest would be given the responsibility of monitoring the effects of BERT says all you need to know about the sad state of affairs

    https://barbadostoday.bb/2018/09/14/bank-to-consumers-buy-a-car/

    Like

  • @ pieces

    I going ask David to confirm I ain t Walter to put your mind at ease 😊

    Thanks for your kind words also.

    Like

  • Wily hears lots of references in the blog & video to payments being stretched out over 7 years, Wily thinks this is not TRUE, principal payments are deferred 5 years until 2024. which in Wilys OLD MATH is 5 years. Also there is the up front payments due 2020/21.

    Another Agreement Clause that is being brushed over may have significant impacts owing To Barbados lack of past integrity on its obligations,

    • A clause providing for the reinstatement of forgiven principal and
    past due and accrued interest upon the occurrence of a payment
    event of default prior to the successful completion of the ongoing
    International Monetary Fund program.

    This agreement has BARBADOS by the Short Hairs and the other side of the table is holding giant scissors waiting for the gonads, like David said “Barbados is in some deep dodo”.

    It also has to be remembered that this agreement is only covering a little more than HALF the Foreign Debt, the remainder is still outstanding and there is presently no agreement. Were all assuming that this agreement is for the Credit Suisse loan, Foreign Bank Debts in the form of Bad Certificates which amounted to some $1.2B to $1.4B Bds dollars. There are all the other Foreign loans coming due or are due, Prison, Chinese, CDB, Canadian Government for Water Infrastructure development, IDB etc.

    Like

  • Yet with all the money borrowed the streets is in major need of repair
    As if no money in the past thirty years was used to rebuild the roads
    Not to mention an aged watersystem that seems impossible to maintain

    Like

  • @ John A
    @Vincent
    @Redguard

    Have you noticed Mr Yarde of the stock exchange calling for people to withdraw their savings and invest in equites? But despite this bit of irresponsible advice, not a word from the regulator, not a word from the politicians, not a word from the DLP.
    As to the so-called agreement in principle, have you noticed that there is a natural disaster clause, but t s restricted to earthquakes, tropical cyclones (who can tell who wrote this agreement), or rainfall events. But there is nothing about epidemics, which are more likely to hit the country than earthquakes.
    However, the piece de resistance is the choker: all the so-called forgiven debt will be reinstated if the government defaults again. As we used to say in the Ivy, brugdung.
    Where is Mr Jong, the Chinese magician? Where are the great smoke and mirrors tricksters? Where is the great leader? All combining to tell us what a great achievement.
    Barbados is a failed state. It is all going to end in tears and n ten years the President will be president of the world and Prof Persaud will be living in his London mansion..

    Liked by 1 person

  • What there to break down
    Govt owes was given a couple breaks here and there
    Not enough to make the load sufficiently lighter
    Govt now has to come up with a game plan to pay the debt
    In meanwhile all await with baited breath to here what are Govt plans

    Like

  • Hal the only people who would see this agreement as a master stroke would be the blp flat footed koolaid drinkers
    Makes me wonder why did Mia hire White Oaks
    In my opinion White Oaks should be asked to give a refund to the taxpayers
    That agreement was so simplified that any local economist could have provided the same technique to get the same result

    Liked by 1 person

  • Possibly the questions we should be asking ourselves, relate to our expectations, While a layman like myself, will use debt restructuring, debt refinancing, debt re-profiling etc etc to refer broadly to an exercise in liquidity improvement, they are in fact different things. They may, or may not, include debt concession.
    This thread only refers to the foreign currency denominated debt. In addition to local official debt instruments negotiated before, the GoB had much more Debt. Nearly every SOE had used every available credit extension from suppliers. So concurrently, suppliers who were owed monies for a long time, were also being asked to forgive a portion of those monies owing, for a full payment of the remainder. This was apparently managed by the IMF. The largest debtor in this area was likely the NIS. And since the GoB has payments to a much wider group, I have no idea of the full list of arrears.
    So…what are our expectations?

    Like

  • @ Mariposa
    You are right. With our QCs, top economists and top negotiators, we had to hire White Oaks. Here is a lesson I learned as a young man: in negotiations, ‘both sides agree on more than 80 per cent of the issues; the only difference on a small parts. Good negotiators can overcome that. White Oaks was a waste of taxpayers’ money.

    Liked by 1 person

  • when i tell fowls and false leaders how IGNORANT THEY ALL ARE…there is always weeping, wailing and knashing of teeth…steupppss…

    KNOWLEDGE WILL ALWAYS BE POWER..

    .ya can’t make up knowledge,

    ya can’t get it from some false title or shite degree..

    .ya have to seek it…

    i hardly ever quote but ah tired calling that lot of public nuisances and parasites by their real names, let someone else tell them..

    https://barbadostoday.bb/2019/10/18/bteditorial-where-ignorance-is-bliss/

    “Knowledge will forever govern ignorance, and a people who mean to be their own governors must arm themselves with the power which knowledge gives.” – James Madison

    A retired United States Supreme Court Justice, David Souter, when asked what in retirement kept him awake in his native New England log cabin home, replied: “pervasive civic ignorance”.

    Speaking in 2012, in an eerily prescient comment at the University of New Hampshire that on reflection was harbinger of the Age of Trump, he said: “What I worry about is, when problems are not addressed and the people do not know who is responsible … some one person will come forward and say, ‘Give me total power and I will solve this problem.

    “That is how the Roman Republic fell.

    “That is the way democracy dies.”

    With crackling perspicacity, the appointed-for-life justice of the US high court who decided instead to retire at the relatively early age of 70, captured the zeitgeist of a subsequent age – the present.

    We live in an era in which Western democracies seem to lumber along with the weight of proud know-nothings.”

    Liked by 1 person

  • worth reading and repeating TWICE…

    “What I worry about is, when problems are not addressed and the people do not know who is responsible … some one person will come forward and say, ‘Give me total power and I will solve this problem.”

    has corruption been addressed??

    has thefts of public funds been addressed??

    has anyone taken responsibilty or HELD ACCOUNTABLE???

    has anything to do with the future progress, wealth creation, job creation for the majority population been addressed?

    and they all fully expect to move forward with another bunch of “some one persons”..now BEGGING for total power CLAIMING they can fix the problems…

    the island is NOT going forward, it’s going BACKWARD…..lead by the miseducated who all OOZE LACK OF KNOWLEDGE..

    Like

  • Dude is totally CLAIRVOYANT…

    “We live in an era in which Western democracies seem to lumber along with the weight of proud know-nothings.”

    Liked by 1 person

  • “pervasive civic ignorance”.

    “A nation that skimps on teaching the basic mechanics of governing endangers itself”

    this ignorant lot NEVER KNEW the basic mechanic of governing, everything was created for them, the constitution, the system, the social environment and they NEVER KNEW how to change it or make it better……due to too many decades of IGNORANCE, GREED, BACKWARDNESS…and FALSE PRIDE…

    Bajans should NOT be accepting any of this in this ERA….get them GONE..

    Like

  • Oh plse stop clogging up the blog with nonsense.

    Like

  • shut up Hal..you are another idiot…do you have WORKING SOLUTIONS….all of you EXCEPT A FEW.. dance around and skirt the CORRUPTION…issue..that has DESTROYED THE ISLANLD…..all you do is ask for some REGULATOR…that you have been REPEATEDLY TOLD by multiple bloggers in the last 5 YEARS…does not exist in Barbados…but yet you continue asking…equally MISEDUCATED…

    Like

  • See what happens when you HATE THE TRUTH…ya IGNORANCE is highlighted..

    i look forward to hear you asking for a non-existent regulator in Barbados AGAIN for the 6th YEAR…

    Like

  • @ Hal.

    The right to reinstate forgiven debt due to default was a move I expected. Right now Barbados has a credit rating that is junk and a record not only of default but of a prolonged period prior to settlement. Well we got spanked for the 18 month delay already, but the fear of future default by creditors will be with us for a while so there is little we can do here.

    I still want to hear about the unrestructured debt and how it will affect the restructured debt payment in terms of cash flow. I also want to see if government will now take the 5 year breather to go and borrow more money short term thus loading the Ponzi scheme further.

    Liked by 2 people

  • John A everyday you were on here bellyaching about paying the creditors. Now an agreement has been reached your cry now is for all the details.Tell what is your haste the deal was reached friday last week. The government will release the details when they are ready so this orchestraded effort by you, Austin, Mariposa etc will not make any difference.Just cannot please so.e bajans at all!If you do a they want b if you do b they want c binch of complainers.

    Like

  • Remember WHO is paying yall SALARIES…ya acting like ya put yaselves there…and will have the NERVE and gall to come BEGGING VOTES in 3 short years….maybe ya can’t see it, but those NOT BLIND…can see ya teetering…right on the edge of that PRECIPICE that ya so EXPERTLY BUILT……..you only require one nice PUSH…

    Like

  • @ John A

    This is a really sad moment in our history. We can do a lot better. Govt must stimulate the economy with an infrastructural programme. It is not too late. Re-develop the City, build over the Transport Board site, renovate the old housing areas, improve our educational system from nursery to post-graduate, control the number of vehicles on our streets, re-launch the Evening Institute and make it free, launch a Sovereign Wealth Fund and link it to a new pension system, refurbish the dry dock, introduce a network of budget hotels based on a new investment model – I will end there. .

    Like

  • John A
    October 21, 2019 12:05 PM

    “@ pieces.
    First I am not Walter although we have similar views on many issues.”

    Piece uh de cock yeah tight,
    That explains why he might be so anxious for you to name the 3 valid political parties which you stressed on BU that Barbados has.

    I am staying out of it. I am no credibility expert.

    John A,
    I vainly tried to stop myself from giggling.
    Piece uh de cock recognizes, knows, accepts, and concedes that John A. is not Walter Blackman. Yet, paradoxically and inexplicably, your mere use of a plural pronoun and some type of “form” have convinced him, far beyond the shadow of any doubt, that Walter Blackman is John A.

    He refers to his new type of wildcat, scatterbrained thinking as “Diversification”.

    Like

  • Look out Salemite v Former Senior Editor. I tell wunna go read the last blog on White Oak. Morning and evening words don’t match up.🍿🍿🤣🤣🤣

    Like

  • @Walter.

    Lord next thing he going accuse me of now is talking to myself. Lol

    Good to hear you Walter.

    Like

  • There is an understanding tactic and otherwise not to discuss or probe the anonymous identities of commenters, let us respect it.

    @Northern Observer

    Mia seems to be following the Grenada model.

    Like

  • @ Enuff

    It is nice to see you are up to your usual level of discussion. You must change. It is not funny, it is stupidity. Is this how you behave when you chair your all-white meetings?.

    Like

  • John A
    October 21, 2019 4:07 PM

    “@Walter.
    Lord next thing he going accuse me of now is talking to myself. Lol
    Good to hear you Walter.”

    John A,
    Chuckle.

    I read and follow all of your arguments.
    Keep up the good work, my friend.

    Liked by 1 person

  • @ Hal

    I agree with you now that we must move with haste to implement a real growth plan and take advantage of the 5 year breather. We have to use this time and grow our FX earnings so that when the loan payments start we are earning more foreign exchange as opposed to borrowing it. If our FX earnings don’t increase substantially over the next 60 months at a sustainable level, we are going to find ourselves in serious problems. This time around default will not be an option either.

    I hope all involved understand a growth plan is not only needed now, but critical in order to honour our new loan agreements.

    Like

  • @ Walter.

    Thanks for the encouragement and take care.

    Like

  • @John A

    We are comfortable that we have no short term forex commitments?

    Like

  • Vincent Codrington

    @ John A at 4 :28 PM

    Where is this “5 year breather” that you refer to? Even Pachamama, in an earlier Blog, cautioned that we are not yet out of the woods. You ,yourself, claim that there is no growth plan.
    I am just trying to discern the strategy.Am I too linear in my thinking?

    Like

  • @enuff

    Let us move passed the bluster – please say if you agree with the deal as outlined in the GIS release and why. Forget the usual suspects for a change. We all bring different perspectives to bear.

    Like

  • • Equal semi-annual principal amortisations commencing in April
    2025 through the remaining term of the bonds; • A fixed annual coupon of 6.500%;

    Like

  • (Quote):
    Govt must stimulate the economy with an infrastructural programme. It is not too late. Re-develop the City, build over the Transport Board site, renovate the old housing areas, improve our educational system from nursery to post-graduate, control the number of vehicles on our streets, re-launch the Evening Institute and make it free, launch a Sovereign Wealth Fund and link it to a new pension system, refurbish the dry dock, introduce a network of budget hotels based on a new investment model – I will end there. (Unquote).
    +++++++++++++++++++++++++++++++++++++++++++++++++++++

    Of course it is too late for a “failed state” whose burial would be one marked by a mourning Atlantic Ocean of tears.

    All patriotic Bajans- whether at home or scattered across all corners of the planet- would support to the hilt such altruistically high-sounding infrastructural developments reminiscent of the 1950’s economic takeoff.

    The question is who would be prepared to lend Barbados the foreign exchange needed to underwrite such lofty projects to propel Bim into a 21st century ‘developed’ country with the commensurate growth in the ‘habit’ of discipline which is a sine qua non.

    The stuttering one-cylinder economy is very heavily dependent on that fickle fuel for an industry called tourism which is generating forex just enough to pay the day-to-day bills (except foreign debts) but certainly not sufficient to go on an infrastructural spending spree at this time.

    As you so often point out, without even appreciating it, Barbados, like England, has had her day in the sun of economic hedonism.

    So take a word of cautionary advice from one of Dr. Hook’s famous songs:

    “I guess the dance is over now
    So you just courstey, and I’ll bow
    And ask the band to play us Auld Lang Syne
    And I’ll just take whats left of me, right ba(c)k to where it used to be
    And you’ll go sail your magic carpet far across the sky

    I wish I could have made it more like the movies for ya
    Some pretty technicolour way that’s never been
    Im sorry when I kissed you, you only heard me whisper
    You never got to hear those violins
    Did ya girl?
    No you never got to hear those violins, no..”

    Like

  • @ Vincent.

    I thought I read that we had negotiated a 5 year period free of debt repayment. If I didn’t my apologies as old age must be fooling me.

    Did we not get a 5 year moratorium on debt repayments? Or did I hope we did. Lol

    Like

  • David
    I await the people in the know explaining the deal. You know I don’t push muh head where muh body can’t pass.
    Hal
    Actually I am delighted that you’ve finally said what you said about the clogger.🤣🤣

    Like

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