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.
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503 responses to “Barbados Government and External Creditors Announce Agreement”
Hal Austin
@ 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.
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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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John A
@ 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.
Your expertise would be appreciated but not in ( (Latin, Greek , Histories of Greece And Rome ). lol
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Miller
@ Enuff October 21, 2019 9:40 AM
“Jesus take de wheel. The usual vapidity for the most part.”
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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).
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WURA-WAR-on-U
“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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Enuff
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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Hal Austin
@ 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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John A
@ 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.
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Piece the Legend
@ 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
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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.
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Piece the Legend
@ “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”
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John A
@ 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!😊
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John A
@ 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.
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Piece the Legend
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.
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Redguard
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
I going ask David to confirm I ain t Walter to put your mind at ease 😊
Thanks for your kind words also.
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Wily Coyote
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.
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Mariposa
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
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Hal Austin
@ 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..
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Mariposa
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
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Mariposa
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
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NorthernObserver
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?
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Hal Austin
@ 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.
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WURA-WAR-on-U
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..
“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.”
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WURA-WAR-on-U
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..
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WURA-WAR-on-U
Dude is totally CLAIRVOYANT…
“We live in an era in which Western democracies seem to lumber along with the weight of proud know-nothings.”
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WURA-WAR-on-U
“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..
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Hal Austin
Oh plse stop clogging up the blog with nonsense.
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WURA-WAR-on-U
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…
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WURA-WAR-on-U
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…
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John A
@ 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.
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Lorenzo
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.
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WURA-WAR-on-U
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…
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Hal Austin
@ 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. .
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Walter Blackman
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”.
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Enuff
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.🍿🍿🤣🤣🤣
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John A
@Walter.
Lord next thing he going accuse me of now is talking to myself. Lol
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.
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Hal Austin
@ 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?.
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walter Blackman
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.
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John A
@ 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.
We are comfortable that we have no short term forex commitments?
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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?
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.
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Hal Austin
• Equal semi-annual principal amortisations commencing in April
2025 through the remaining term of the bonds; • A fixed annual coupon of 6.500%;
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Miller
(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).
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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..”
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John A
@ 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
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Enuff
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.🤣🤣
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