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.
Barbados Agrees On Terms With External Creditor Committee For Restructuring Of U.S. Dollar-Denominated Commercial Debt
The Government of Barbados (the “Government”) and the Barbados
External Creditor Committee (the “Committee”) jointly announced today
that they have reached an agreement in principle to exchange certain of
the Government’s U.S. dollar-denominated debt for new bonds to be
issued by Barbados. This includes Barbados’ 7.8% Fixed Rate Bonds due
2019, 7.25% Notes due 2021, 7.00% Notes due 2022, 6.625% Notes due
2035, and Floating Rate Loan with final maturity in 2019 (together, the
“Eligible Debt”).
The agreement in principle follows extensive discussions between the
Committee and the Government. These discussions have included a
number of meetings between senior governmental officials and
representatives from the four core members of the Committee, which
includes Eaton Vance Management, Greylock Capital Management, LLC,
Teachers Advisors, LLC, and Guyana Bank for Trade and Industry
Limited. Two of the meetings were attended by Prime Minister and
Minister of Finance, the Hon. Mia Amor Mottley.
In reaching an agreement with the Government, the Committee
considered information made public by the Government regarding the
country’s current financial and economic situation. The Committee also
considered the International Monetary Fund’s program and first review of
Barbados.
The agreement in principle includes a reduction of 26.3% in the aggregate
sum of the original principal amount of the debt obligations and past due
and accrued interest as of 1 October 2019.
In addition, the new bonds will have the following key terms:
• A final maturity of 1 October 2029;
• Five year grace period on repayments of original principal;
• A debt management provision through October 2024;
• Equal semi-annual principal amortisations commencing in April
2025 through the remaining term of the bonds;
• A fixed annual coupon of 6.500%;
• A “natural disaster clause” that, subject to certain conditions and
input from holders of the new bonds, will enable the Government
to capitalise interest and defer principal maturities due on the new
bonds for two years in the event that Barbados is adversely affected
by an earthquake, tropical cyclone or rainfall event under its
Caribbean Catastrophe Risk Insurance Facility Segregated
Portfolio Company insurance coverage; and
• 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.
The amount of past due and accrued interest as of 1 October 2019 that is not to be cancelled will be treated as follows:
• US$7.5 million to be paid in cash at closing to holders participating
in the exchange (subject to the deduction of the Committee’s
unreimbursed costs and expenses below);
• US$32.5 million paid in the form of PDI bonds with a fixed annual
coupon of 6.500%, with an amortization of US$30.0 million in
October 2020, and a final maturity of February 2021; and
• Balance to be capitalised into the new bonds that will mature in
October 2029.
The Committee’s unreimbursed costs and expenses incurred in
connection with the negotiation and implementation of the restructuring
transaction (US$3 million) will be deducted from the cash payment made
by the Government at closing in relation to past due and accrued interest,
so that these costs and expenses are borne equally and fairly among all
holders.
It is anticipated that the new bonds due 2029 will be issued with an aggregate face value in excess of US$500 million. These bonds have been
structured with eligibility for J.P. Morgan Emerging Market Bond Index
(EMBI) inclusion in mind.
The Government expects to launch a parallel exchange offer for certain
U.S. dollar-denominated instruments issued under Barbados law in the
coming weeks, effectively completing the comprehensive restructuring of
the country’s high debt burden, which included the successful closing of
the B$11.9 billion (equivalent to US$5.95 billion) domestic debt
exchange offer in November 2018.
The agreement in principle reached by the parties, and the support of the
members of the Committee for the proposed restructuring, is conditional
on the parties reaching agreement on mutually satisfactory documentation
setting out the detailed terms of the transaction and the new bonds. The
Government and the Committee have agreed to commence work
immediately on, and to work in good faith with their respective advisers
to reach agreement on, mutually acceptable documentation and the
implementation of the proposed transaction. The Government and
Committee members have also agreed to maintain an ongoing dialogue
on economic and financial developments in Barbados following the
conclusion of the proposed transaction which may include a provision of
the new bonds to facilitate bondholder organization and good faith
interaction with Barbados.
The Committee organized in early June 2018 and currently represents
more than half of the Government’s Eligible Debt.
The Government plans to launch the invitations to holders in the coming
weeks to participate in the restructuring.
This communication is not an offer or a solicitation of offers to exchange any securities. The invitations are being made solely by the relevant invitation memoranda that will be distributed in due course. The distribution of materials relating to the invitations, and the transactions contemplated by the invitations, may be restricted by law in certain jurisdictions. If materials relating to the invitations come into your possession, you are required by the Government of Barbados to inform yourself of and to observe all of these restrictions. The materials relating to the invitations do not constitute, and may not be used in connection with, an offer or solicitation in any place where such exchange offers or solicitations are not permitted by law. The new bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The new bonds will be offered in the United States only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States in compliance with Regulation S under the Securities Act.
“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.”
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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.
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Mariposa
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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TLSN
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.
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.
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John A
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.
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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John A
@ Vincent
You too bad! Lol
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John A
@ 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.
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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robert lucas
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.
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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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John A
@ 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?
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John A
@ 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.
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WURA-War-on-U
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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NorthernObserver
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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NorthernObserver
“Over fifty years of15 billon dollar debt to be paid off in a shorter time span”
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.
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Piece the Legend
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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Piece the Legend
@ 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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Piece the Legend
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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TLSN
@ 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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TLSN
@ 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.
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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Piece the Legend
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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Piece the Legend
@ 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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Wily Coyote
@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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Crusoe
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.
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Mariposa
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
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WURA-War-on-U
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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TLSN
@ 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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FearPlay
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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FearPlay
Surely a country allegedly in debt could not afford that kind of spend. Go figure
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WURA-War-on-U
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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Miller
@ 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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URA-War-on-U
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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WURA-War-on-U
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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TLSN
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.”
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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John A
@ 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.
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Dullard
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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Enuff
Jesus take de wheel. The usual vapidity for the most part.🤫
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John A
@ 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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John A
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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Mariposa
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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John A
@ 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.
The blogmaster invites you to join the discussion.