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”
John A
@ David.
I can’t remember if we have short term FX commitments or if they were part of the negotiations. Nor did they say if they were short term commitments remaining outside of the restructured amount.
We can only discuss unfortunately what was stated as it speaks to the $500M. Your concern though is a genuine one and is indeed a grey area for sure.
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John A
@ Vincent.
Yes there was a ” 5 yr grace period on the original Principal ” as a condition of the new bonds, at least that was what was stated in the statement David shared.
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Walter Blackman
John A
October 20, 2019 8:30 PM
“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.”
John A,
I am not sure you are looking at this from the right angle. Keep in mind that the Government of Barbados unilaterally defaulted, without discussion with the creditors, on its foreign loan repayments.
Now that they have come to the table, they have to “sweeten the pot”.
We are dealing with bonds. Let us assume that the value of a bond is reflected
in what it can be sold for. That is, the bond price.
You are holding government bonds at 7.4%, and with all things being equal (the well-know ceteris paribus assumption), the government of Barbados wants to exchange them for bonds at.6.5%. Remember, the higher the price of the bonds you are holding, the better for you.
Is the government of Barbados trying to cheat you?
Would you accept the new bonds at the lower interest rate?
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Walter Blackman
*well-known
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John A
@ Walter.
From what was stated it appears the creditors want to offer us a little better rate in the 6.5% but extend the loan period. To me I read it as what they lose on the corners they want to make up on the straight. The thing is though without knowing the old bond due dates and the rates for each bond issued, it is hard to state how much exactly this new deal will cost us.
To he honest I don’t think it even matters now as we didn’t have the money anyhow to pay under the existing contracts so as they say beggars can’t be choosers. We needed more time and hence we will pay more interest.
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Donna
Crusoe
Re: 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.
+++++++++++++++++++
I had that idea just yesterday and while speaking those exact words I wondered if I was just being too simple.
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Mariposa
Lorenzo stay of the koolaid yuh sound drunk
Who u want to belive with that comment that govt going release details
Here i am still awaiting govt to release the cabinet ministers portfolio under the banner of transparency
A year later and nothing is said
Yuh think people foolish to believe more of Mia promises
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Donna
Piece,
John A makes the common mistake of using ‘of” for “have”. For example, he always writes “I would not of” instead of “I would not have”. Walter does not do that. His English is usually flawless.
Not the same person.
No offence John A. It is just that Piece is being annoying.
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NorthernObserver
@Blogmaster
I am not intimate with The Grenada model; memories which stick relate to sharing passport sale revenue and they had a CAC clause which forced all to take the deal once a large majority agreed.
Tis election day!!!!
@Hal
While I am all for varied investments, Junior, as you call him, reminds us, public open tender is not a concept frequently used in Barbados, under the watch of any group. They like no bid contracts. I cannot support large infrastructure investments under these terms, as they only spell a continuance of feeding at the political trough, and excessive cost to build anything.
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Walter Blackman
John A
October 20, 2019 10:37 PM
“@ Vincent.
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! ”
John A,
The statement does not tell us how much past due and accrued interest payments amounted to at October 1, 2019.
However, from the statement, we know that past due and accrued interest at October 1, 2019 = 7.5m (to be paid now) + 32.5m (we don’t have the cash right now, so we gave the creditors PDI bonds with 6.5% annual coupons and will pay them 30.0m in October 2020 + 2.1m in coupon payments in October 2020 + the rest in 2021) + an unknown amount which goes into the more than 500 million dollars of bonds maturing in 2029.
If we ignore the amount that was cancelled, the amount of outstanding interest payments at October 2019 was USD40 million + an unknown amount converted into bonds maturing in 2020.
Cash flow wise, the government paid out only USD 7.5 million this year for missed payments.
Next year, they have to pay 32.1 million (missed interest payments} + at least 32.5 (annual coupon of 6.5% on USD 500 million bonds maturing in 2029).
That is, they have to pay a total of at least USD64.6 million next year.
Note that we are discussing an agreement that involves just over half of government’s total foreign debt.
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Walter Blackman
John,
I wasn’t putting you on the spot. I simply wanted other readers to think and understand what is happening.
The first point I want to emphasize is that there is an inverse relationship between bond prices and interest rates. If interest rates go down, bond prices rise. If the creditors sold their 6.5% bonds, they would fetch a higher price than the 7.4% bonds.
So government was not trying to trick or cheat them. Government’s main objective was to ease the debt repayment pressure in the short term so it had to give up something.
The combined David Thompson/Freudel Stuart administrations did untold and possibly irreparable harm to the economy of Barbados.
Government, with no money to meet its debt obligations, had to come up with something to please creditors on one hand, and ease its cash flow pressure on the other.
They made an effort, and they succeeded in this endeavor.
Congratulations are in order.
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John A
@ Walter.
Yes the amounts are burdensome but what I am also concerned about is the amount that was not covered by the restructuring. Are those loans going to remain as is? Do we have any large repayments due on these non restructured amounts in the short term?
I am glad we bought some time on the $500M, but we need some insight on how much the amounts not covered under the new plan will add to the cost you outlined above.
That $64M USD payment next year is a tough bullet to swallow. I wonder now how much we need to add to that to cover debt service not covered in the restructuring. Then of course we have to remember the cost of the “unknown amounts” you mentioned that have to be accounted for somewhere. Lord this would drive a man to drink!
Agree we need a more granular report especially from the Creditors. Especially concerned with our 1 year forex obligations.
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Walter Blackman
John A
October 21, 2019 6:14 PM
“@ Walter.
The thing is though without knowing the old bond due dates and the rates for each bond issued, it is hard to state how much exactly this new deal will cost us”
John A,
We were given the old bond due dates and their rates:
7.8% bond, maturing in 2019
Floating rate loan maturing in 2019
7.25% Note* maturing in 2021
7.00% Note maturing in 2022
6.625% Note maturing in 2035
They did not give the amount we borrowed, for each loan.
The maturity dates have been extended 7-10 years into the future. Note that there is not much interest rate reduction in the loan that was supposed to mature in 2035. This loan will now mature 6 years earlier.
2029 – that might very well be the year when pensioners who rely solely on government pensions and NIS pensions really begin to feel the squeeze.
Notes are bonds are practically the same thing. However, notes tend to have shorter maturities than bonds.
These maturities do not represent the total government bond holdings right?
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Yatinkiteasy
Dont worry folks, remember, Barbadians can now have US dollar accounts in Barbados, so there will be a tremendous rush of Bajans, bringing in tens of millions of greenbacks they have in US, Cayman and Panama Banks.I also have a Waterfall known as Niagara Falls for sale, if you are interested.
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Walter Blackman
John A
October 21, 2019 7:16 PM
“@ Walter.
Yes the amounts are burdensome but what I am also concerned about is the amount that was not covered by the restructuring. Are those loans going to remain as is? Do we have any large repayments due on these non restructured amounts in the short term?”
John A,
If you and I had this cash flow problem to deal with, we would make sure that the repayments which are large and most pressing are the ones we renegotiate. We have to hope that the officials representing the government of Barbados did the same.
It certainly would not look good if government were to tell us they have to miss a debt repayment next year because it was not renegotiated, and they have no money.
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John A
@ Walter.
One can only hope.
You know what i can’t help but wonder on? The agreement says if we default on any of the loans under the restructuring the full 26% discounted will be added back.
So if we default on amounts due that are not covered under the new agreement, would that be acceptable still?
The devil is in the details.
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Walter Blackman
Walter Blackman
October 21, 2019 6:50 PM
“Note that we are discussing an agreement that involves just over half of government’s total foreign debt.”
David
October 21, 2019 7:38 PM
“@Walter
These maturities do not represent the total government bond holdings right?”
David,
I get the impression that they do not. The way the politicians were borrowing, there must be many bonds with maturity dates beyond 2022.
I misspoke above.
The statement said that the bonds and maturities identified are the “eligible debt” and the committee represented more than half of “the eligible debt”.
It gave us no idea how much the “ineligible debt” is.
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Vincent Codrington
John A
There are too many grey areas in the official communique. One can speculate ; but I prefer to work with hard facts/information. This is worse than BERT.
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Miller
@ Walter Blackman October 21, 2019 7:35 PM
Wouldn’t it be rather informative if we could identify the assets or public sector investments (either in physical or human capital) which could be associated with the same bonds, notes and loans which the poor taxpayers and hardworking tourism industry workers now have to repay with their sweat and tears; and in some cases, blood?
Where in Bim can we find the assets to match these liabilities in order to balance the accounting equation? Should we search in the new Capital of the rabbit hole for a town called Warren(s)?
This is a transparent government the information you need to support a stern conclusions will be delivered.
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Walter Blackman
The committee functioned for 16-17 months and their work cost Barbadian taxpayers USD 3 million. Are those expenses reasonable? What was most of the money spent on?
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John A
@ Vincent.
I agree they are enough holes in this to drive a bus through. Like you I only can speak to what we were given. It is impossible to measure the true cost of the restructuring as too much information has been withheld. I also doubt we will be given further information in any real detail either.
So we must move forward now and hopefully we can focus on an economic growth plan that unlike BERT will actually work.
Why would the Committee representing the creditors not be forthcoming with details of the deal? Hard to believe there is a NDA in place.
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Walter Blackman
Miller
October 21, 2019 8:09 PM
“@ Walter Blackman October 21, 2019 7:35 PM
Where in Bim can we find the assets to match these liabilities in order to balance the accounting equation?”
Miller,
Put bluntly, every Barbadian company or individual who can earn foreign exchange for the country of Barbados must now be allowed and encouraged do so.
The government of Barbados has been consistently providing support and contracts to foreign companies doing work that Barbadian companies and individuals can do. These contracts are not put out to tender, and whereas these foreign companies repatriate millions of dollars in foreign exchange yearly, the Barbadian companies are left to wither and die. This is one singular act of government which continues to drive a stake through the heart of our national development. This self-destructive practice must stop! Now!
Mind you, these Barbadian companies and individuals are willing to accept Barbados dollars, whilst they earn foreign currency. Import substitution is going to be a major exercise.as we seek to grow our national economy.
The blogmaster appreciates the dispassionate way many of you on this blog have debated this matter up to now.
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John A
@ David
I don’t think the creditors are the ones responsible to ensure transparency. They guided by their advisors will ensure confidence is kept from their end.
We must now place our energy solely in working towards true growth if we are to finance what is ahead of us.
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William Skinner
The economy will only grow when there is a decrease in the food import bill; when foreign exchange earnings increase by at least ten to fifteen percent and when multi million investments take place.
Any further decrease in economic activity will lead to : increase taxation; more public sector lay offs ; further decrease in social services and increased pressure to attract investors and meet debt obligations.
The question which arises is whether we can overcome these challenges with the current economic direction.
Until this is clearly known and understood, the hope for growth is just that- hope.
We talk about changing directions yet today I heard those who should know saying on brass tacks that several bottle necks to doing business are still there. Tossing about numbers and trying to interpret deals that we remain in the dark about will not solve any problem.
Jeremy Steven tried his best to be magnanimous in assessing the current debacle and still concluded that we simply can’t identify any definite solutions to our economic predicament.
The country is in a mess and sugar coating the situation is bordering on intellectual hypocrisy of the greatest magnitude. That in itself is a bigger problem than our current economic challenges.
Let me state for the last time: the economic mess reached its zenith under the last administration. However the road to our current predicament was there for more than forty years.
The other obvious hypocrisy is that those who would have contributed to the destruction are now pretending that they were oblivious to the decadence .
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Vincent Codrington
@ David BU at 8 :13 PM
As usual , I will be guided by you. But my professional motto has always been :” Trust, but verify”.
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NorthernObserver
@WB
Thanks, you are a better mathematician than I, so you can place the unknowns in the appropriate place, where I just appreciate we are missing info.
You are correct about the inverse relationship with bonds on prices and interest rates, yet these relate to the bond coupon rate versus the market rate. It appears you have been comparing two different bond coupon rates from the same issuer, while the market rates haven’t changed much?
Truth be told, there has been little demand at almost any price for Barbadian bonds for many years. The risk adjustment was simply too much.
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WURA-WAR-on-U
“The other obvious hypocrisy is that those who would have contributed to the destruction are now pretending that they were oblivious to the decadence .”
And got the nerve to be pretending they are WORKING WONDERS…and doing the people a huge favor…steupppsss.
“Miller,
Put bluntly, every Barbadian company or individual who can earn foreign exchange for the country of Barbados must now be allowed and encouraged do so”
they better RELEASE that marijuana to the PEOPLE…and stop holding on to it for their BRIBEMASTERS and themselves only…no one who is aware in the majority population is allowing anymore disenfranchisment and OUTRIGHT THEFTS of their children’s futures by the usual CRIMINALS..in the parliament and private sector…they want growth right, either RELEASE IT OR GET NONE….. and then ANSWER TO THE CREDITORS…
the Rasta community has all the time in the world…but the pretend government has only 3 years to prepare for elections…
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Hal Austin
@ Walter
The combined David Thompson/Freudel Stuart administrations did untold and possibly irreparable harm to the economy of Barbados.(Quote)
You cannot be serious. Plse detail the evidence. The truth is that Stuart should not be leader of a scout group, far less a nation, but the decay started on November 30, 1966. Thompson was not around long enough to be rationally criticised.
@ Northern Observer,
An open, competitive procurement process should sort out any perceived corruption in the process. Don’t let the perfect be an enemy of the good.
@ John A
We now need, and urgently, an impact assessment from the ministry of finance, one which discards the redundant outdated 1970s economic models. Will we get t? We must cut out meaningless speeches and concentrate on policy-making.
If government is thought to be a continuum than the Thompson Stuart combination had the opportunity to address the rot. It is no different with the Mottley administration, it has been given a mandate to reverse the rot, this will be their legacy to build.
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Mariposa
The blp flat footed koolaid drinkers with David in tow would continue to blame Stuart for the demise of batbados economy which is simply a continuum of the fake news Mottley started 10 years ago
Honesty no longer is the golden price the bigger the lie the bigger the price
Now why wouldnt the blp tell the people how much money they borrowed collectively over the years of this staggering 15billion dollar debt
How much was wasted on projects that never started
How much was given away in tax breaks and concessions
When one look at the infrastucture of a decaying barbados the answer can be found
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TheOGazerts
On a next post, I was commenting that the “big brains” with the exception of two bloggers were not explaining what this “agreement” meant.
This blog addresses that inadequacy, I will read all of the comments later in the week, but as I scanned through the comments I saw that the four stalwarts and others were providing explanations and disseminating useful information.
Good job guys.
Have a Great Day Barbados.
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Walter Blackman
NorthernObserver
October 22, 2019 1:42 AM
“@WB
You are correct about the inverse relationship with bonds on prices and interest rates, yet these relate to the bond coupon rate versus the market rate. It appears you have been comparing two different bond coupon rates from the same issuer, while the market rates haven’t changed much?”
NorthernObserver,
Your question is justified.
We are dealing with an esoteric topic here, and the press release from the Ministry of Finance does not allow us the opportunity to see the full picture. I don’t know if this act is deliberate, or if the ministry is underestimating the level of financial understanding of Barbadians.
We have to make some assumptions to create a discussion that others can follow.
Remember that John A started out with an average market rate of 7.4% and compared that with a rate of 6.5%. In essence, he was assuming that the 7.4% and 6.5% were both annual coupon rates.
To create some discussion out of this and give another perspective, I assumed that the 7.4% and 6.5% (given as an annual coupon rate) were both market rates.
These are my words:
“You are holding government bonds at 7.4%, and with all things being equal (the well-know ceteris paribus assumption), the government of Barbados wants to exchange them for bonds at.6.5%.”
I used this assumption solely for the purpose of showing the inverse relationship between interest rates and bond prices, and to suggest that if a lower market rate of interest was used on the new bonds maturing in 2029, it should not surprise us. Nothing more.
However, in reality, the ministry of finance gave us market rates for the “eligible debt”, but no coupon rates. We do not know if the coupons on the “eligible debt” were paid annually or semi-annually, so John A is not in a position to calculate interest savings on the new deal, without making the assumption he did.
Additionally, the ministry of finance gave us an annual coupon rate (6.5%) for the newly issued bonds maturing in 2029, but gave us no idea of what the market rate is for these bonds.
Did the market rates for the 2029 maturities remain unchanged?
What is the market rate on the USD32.5 million PDI bonds which were issued on some past due interest payments at October 1, 2019, and which will mature in 2021?
What are the amount and market rate on the remaining, but unknown past due unpaid interest payments which were converted into bonds maturing in 2029?
We do not know.
Finally, I agree with you that our bonds have recently emerged from “junk” status, so there is little demand for them on the international market.
There are people and institutions who make a living from buying this type of debt so the market rates on these bonds still have a role to play.
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Walter Blackman
Hal Austin
October 22, 2019 3:30 AM
“@ Walter
The combined David Thompson/Freudel Stuart administrations did untold and possibly irreparable harm to the economy of Barbados.(Quote)
You cannot be serious”
Hal,
I am as serious as a fatal heart attack.
You hold a different view. That is good for democracy and debate. Carry on smartly.
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Walter Blackman
Mariposa
October 22, 2019 5:32 AM
“Honesty no longer is the golden price the bigger the lie the bigger the price”
Mariposa,
I agree with you.
It is almost next to impossible for a country to move forward if a critical mass of its citizens can be described as dishonest, deceitful, corrupt, and hypocritical.
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Walter Blackman
Hal Austin
October 22, 2019 3:30 AM
“@ Walter
Thompson was not around long enough to be rationally criticised.”
Hal Austin,
Trust me, you would be better off, and much more effective, preaching this message to CLICO policyholders.
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GP
@ BU October 21, 2019 8:49 PM
RE The blogmaster appreciates the dispassionate way many of you on this blog have debated this matter up to now.
WHEN THE EXPERTS IN THEIR DISCIPLINES OPINE ON A TOPIC ONE GETS INTERESTING AND USEFUL INFORMATION AND A PROPER DEBATE
WHEN THE MORONS AND WANNABEES AND YARDFOWLS EFFLUX FROM THEIR SHELVES OF HOUSTON, WE NATURALLY GET SHIT
BARKERS AND BRAYERS OUGHT TO REFRAIN WHEN THEY KNOW THEY HAVE NOTHING RELEVANT TO POST
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William Skinner
@ David October 22, 2019 4:44 AM
If government is thought to be a continuum than the Thompson Stuart combination had the opportunity to address the rot. It is no different with the Mottley administration, it has been given a mandate to reverse the rot, this will be their legacy to build.
Was the rot addressed before ? Just asking. As far as I can recall this is our third trip to the international loan sharks. By your own admission there was rot to be addressed by all previous administrations. By the way it’s better to remove rot than to “reverse” it. This whole scenario is like the advertisement on television where the crooks are advising on home protection.
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WURA-War-U
Let them keep their SLIMY SECRETS…we have secrets TOO.
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Hal Austin
@ Walter
We have discussed this matter on numerous occasions on BU. There was no problem with Thompson/Parris and Clico that good regulation and the rule of law could not have resolved. It was the outcome of regulatory failure, a mixture of incompetence, fear and ignorance. I know some people like to blame so-called corruption, but that is a cop out. Just look at how Sagicor is now allowed to invest in illiquid residential property without any public warning from the regulator?
Remember, Mr Parris has never been interviewed under caution; the so-called judicial management had an opportunity to subpoena evidence and witnesses but was denied the powers (read it again: it requested evidence from banks and they refused, and it asked a GOVERNMENT department to take action and it refused); under a proper judicial system that would have been contempt and people would be sent to prison. Send one person to prison and see how quickly they would cooperate. And by now Mr Thompson’s probate hearing would have been held. That is a public record.
A lot of the hysteria about Clico is uninformed nonsense, including a lot of what you read on BU. There is the rule of law; why is it not working n Barbados?
Our financial regulatory system is bandit country. Look at Mr Yarde of the stock exchange asking people to invest their life savings in equities, yet not a word from the regulator.
By the way, BERT is not our only weak point, the entirety of financial services are. Doing a degree in a subject taught in an outdated way, taught by lecturers who have not read a recently published book since their PhDs and teaching from decades old notes, is not clever.
I am told Cave Hill is now advertising internally for law lecturers, I hope they look beyond the Caribbean for recruits.
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Miller
@ Walter Blackman October 22, 2019 7:58 AM
“Hal Austin,
Trust me, you would be better off, and much more effective, preaching this message to CLICO policyholders.”
+++++++++++++++++++++++++++++++++++++++++++++++
Wally boy, look what you have gone and done! You have stepped, purposely so, on Hal’s ‘left-footed’ big toe which controls his Achilles heel for a brain.
According to Judge Hal, the CLICO tragedy has nothing to do with the dead king Tomo but was entirely a failure of the ‘Regulators’ including the inactions of the dedicated church-going Christian Mrs. V. Braithwaite.
Doctoring invoices to cover unjustifiable legal fees is not a sin in Hal’s book but a simple oversight covered by the catch-all clause of “E&OE”.
Like you, Hal was ‘friends’ with the dead king who was not only a British-born Guyanese of Bajan heritage but he was first and foremost an honest politician prepared to listen to the ‘know-it-all’ Hal who has a solution for all the problems facing the failed state under the Bajan hot sun.
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WURA-War-on-U
“By the way it’s better to remove rot than to “reverse” it. ”
You are clearly getting the whole picture…REMOVE them all and their criminal minority trash…so the country can start to HEAL and GROW…it’s the ONLY way.
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Mariposa
Don Blackman comments gives the sum total of what this agreement entails when barbados cannot “liveup” to all which govt agrees upon
Sobering but true
While all whistle in the dark of accomplishment
The long and short of this agreements has ironclad clauses that can push barbados backwards instead of forward
Nothing in this agreement gives barbados any breathing room in the event another global collapse occurs
But what the heck
White Oaks smiles all the way to the bank
While the people pull the debt laden basket and wonders “what about us”
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WWURA-War-on-U
Miller…but the fool Hal clearly STATES…..WITHOUT SEEING ANY GOVERNMENT CORRUPTION……apparently he is clearly showing us that he KNOWS NOT (ignorant) what corruption is…we could not make this up.
“and it asked a GOVERNMENT department to take action and it refused); under a proper judicial system that would have been contempt and people would be sent to prison. Send one person to prison and see how quickly they would cooperate. “
It makes no sense splitting hairs. For one year the country stood still while Thompson was at deaths door. He knew it and refused to resign. Stuart and the others knew it but as a Party were unable to reach consensus on a way forward. Stuart the consummate introvert dithered while the country sank to depths never imagined. It is about holding those with the reins accountable. Mia must be held to account!
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