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”
john2
A.
Continue to push you NIS
But this foolishness bout saving a lump sum is not what the restructure was about. it was about Debt relieve in the short term = that is where our saving are
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John A
@ david
You can’t compare them. The NIS in Grenada was not forced by its past ministers to hold practically 50% of their total assets in government paper.
The blow we forced on the NIS was massive. Stop and think if I took 40% of half your savings the effect it would have on you. That is even before we factor in what they lost in round 2 that was just completed.
Plus Grenada moved on their issue way earlier than we did on ours so the return to growth came easier.
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John A
I never spoke to a lump sum saving so you need to review my comments. What I said was the final restructuring cost will see us owing with interest no less than we did prior to the restructuring.
What we bought was time and we need to now use that time to implement a growth plan and address the NIS. If we don’t the entire exercise would have been pointless.
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Walter Blackman
David,
As we wind up (or wind down, take your pick) debate on this very important issue, I would like to take this opportunity to make a few points:
We have not been “inconvenienced” by a hurricane since Janet on September 22, 1955. This has given us a false sense of security. I see many houses in Barbados that cannot withstand wind speeds of a mere 5 mph. It is extremely important to bear in mind that our country has a history replete with stories of thousands killed as a result of hurricanes. Those who are involved in this debt restructuring exercise should therefore be congratulated for inserting a natural disaster clause which gives the country 2 years of breathing space, debt wise, should a major calamity befall us. I wish that we could have gotten five years instead of two.
The financial world has made allowance for the risks and uncertainty which flow from the volatility of interest rates. It abhors any other type of uncertainty. Therefore, the Government of Barbados must be congratulated for taking our unmanageable debt problem by the horns and hammering out an agreement with domestic and some foreign creditors. The agreements were not arrived at along conventional lines, but they now afford us an opportunity to plan and move forward.
Although we have been justifiably strident in our criticism of the press release produced by the ministry of finance, mostly because of the inadequate data presented, we still should take some time out to let them know that we really appreciate their attempt to inform us, and that our constructive criticism is our way of encouraging them to improve the standard of their output as they continue to communicate with us.
We view going to the IMF as a dreadful step. In this case, however, our agreement with the IMF has implicitly gained us a 26.3% discount on our debt. If we default on our debt payments before our programme with the IMF comes to an end, then that 26.3% of debt gets re-instated. We therefore have to earn enough foreign exchange to pay our debt if we want to keep the sword of Damocles a respectable distance away from our throat.
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Vincent Codrington
Patience is a virtue. In the process of time all things will be made clear.
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john2
A
You did not use the word lump sum but u seem to be look for one. Ex – if the debt was 500M for us to save (do not have to pay the creditors) 50M
I am saying no, our saving is from the debt relief in that the totals we have to pay in the now and it the near future wouldn’t be as high as it was before.
The creditors are right to negotiate to get back all the money owed to them and Barbados will come out better by repaying all the money that they had owed to the creditors. Its just that now it will take a little longer.
The “Debt forgiven” seem to me to be structured for the creditors to assist us with an “ease” up front.
nothing wrong with them getting it at the back end – its the money that is owed to them.
It would have been good if we could have made a lump sum saving (I could be wrong that we didn’t but I am just saying that was not the main objective).
But no one can blame the investors/creditors for getting back whats owed to them.
we both won!
PS. what will happen to the value of NIS bonds/coupons when the economy starts to grow?
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john2
Walter
Becareful with congratulations before you get labelled a government supporter
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John A
@ John 2
I think it is too early to try to arrive at the NIS real financial standing. As Walter confirmed earlier we can’t even check their Oppenheimer portfolio to see how badly that was affected by this restructuring. They haven’t filed financials for years and we don’t even know if their current asset valuation represents market value.
All we know is that they took a massive blow in the local restructuring as they were forced to hold half their assets in government paper. The worry for me is that we can’t depend now on the NIS to help with growth when we need growth the most. I don’t think many people understand the amount of good the NIS did to grow this economy, when it was properly managed and not used as the last government’s piggy bank.
The buildings they built that spurred construction, the investments they made in the private sector and the good they did for this island is amazing. I must confess I have a soft spot for them, as above all I just mentioned they also secured thousands of Barbadians a humane retirement. To see all that put at risk now because of the arrogance of the last MOF truly annoys me.
All I can ask is when not if, the PM has to increase deductions to the Bajan worker they support her and understand what is at stake here.
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William Skinner
@ David
I posed a few questions to you and you did not answer any of them. Let me answer you directly. Suggesting that something should be done in a transparent manner does not mean it’s not being done or will not be done in a transparent manner. You agreed with me that the taxpayers took the hit. I am merely saying that any windfall should be disposed of in a transparent manner taking into consideration that we took the hit.
Next time you send a political guard dog after me kindly send a Doberman , German Shepherd . Please don’t send any poodle.
BTW I have a friend who has some pit bull pups. He’s taking orders.
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John A
@ john2
My final point as to why it is critical for us to accept that we in fact may owe more after the restructuring is this.
Once we accept that then it becomes critical for us to do all we can to increase our foreign exchange earnings. We will have to review things like the holding of USD accounts by residents as well as non residents, to try and make it easier for them to access one. For example we may need to make provision for the water sports guys, taxi men and other small businesses to have access to this facility easier as well, either through the SBA or on an individual basis. Government may also need to look back at quotas for car imports and such like. In other words once we accept the reality we then need to secure its success.
My point in identifying the true cost of the exercise is not to criticise anybody or party, but to quantify the amount net that we as a people must now either generate in increased fx activity or save on imports, so as to secure the 26% discount by not defaulting on 1 single loan going forward.
Sadly what it boils down to is numbers. If we cant generate it by increasing future FX activity, then we have to introduce measures to cut imports and try and save it there. All this however must start by first identifying the number we as a people must now aim for. Unlike before we don’t have the option to default again, so its critical we get our numbers dead right this time around.
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Piece the Legend
Touché Mr William Skinner
“…Next time you send a political guard dog after me kindly send a Doberman , German Shepherd . Please don’t send any poodle.
BTW I have a friend who has some pit bull pups. He’s taking orders…”
Class… no ad hominems but bitingly sharp
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Lorenzo
Skinner expected childish response from you.Alike Davif BU i see right threw you despite your duolopy nonsense.Perhaps that is why as Gabriel posits you are bitter with politicians since your one foray with the NDP where he stated i believe you lost your deposit.As for John A i see John 2 got you boobing and weaving to the point where you resorted to calling him a party loyalist then tell us what are you?All the points he made of you calling for a settlement regardless of the outcome for the country are true.Now without the facts you are speculating.Go figure.
Walter BlackmanOctober 23, 2019 9:38 PM
Well summed up.
A ways to go. My hope is when the 2029 bonds are due, we don’t have some former MP/PM asking “how did we get back here”.
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WURA-War-on-U
“DavidOctober 23, 2019 7:44 PM
@Vincent
Can you explain why on a blog of this import we have commenters interjecting with nonsense about smuggling drugs in horse bellies?”
the SECOND ECONOMY…that HELPED DESTROY the FIRST….that STAGNATED GROWTH and WEALTH for the majority population, when it was transferred with the help of two corrupt governments into the hands of minority criminals just like the ONE HORSE TOURISM…..effectively stagnating the majority population from any significant economic empowerment and progress.
…that no one wants to discuss, including Vincent, Walter etc..
That will return to BITE everyone in the ass…because it has ALWAYS BEEN a multimillion dollar industry….OVERLOOKED by those who SHOULD’NT….who thinks it will GO AWAY ON ITS OWN.
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WURA-War-on-U
Ignore it at your own PERIL…but do not COMPLAIN LATER..
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William Skinner
@ WURA
Here we have millions coming in from the CLICO windfall. Why can’t we use it to create a progressive enfranchisement program for small businesses etc and have it properly managed. We have already taken the hit so we could at least try to make lemonade from the lemon.
You will note that we are going to sell the CLICO corporate Centre and then go and rent government offices.
Of course in this forum any idea or attempt to influence government policy is seen as a direct attack on the nation.
This is the same forum that was used to talk about corruption , transparency and good governance but all of that has gone through the window. We are now hearing that it’s expedient to by pass dialogue because decisions are to made and then information would come.
All the fulminations about citizen involvement and the need to keep the politicians on their toes has been abandoned. Caswell is now finding himself persona non grata because he is trying yo speak truth to power.
John A is a Dem because he is trying to enlighten; Hal Austin is really an Englishman, who has no rights speaking and you are now some rabble rouser disrupting BU; Piece who was the most popular cartoonist in the world a few months ago is now a political leper.
And we insult the yardfowl by actually describing some of the most despicable party apologists as such. At least the yardfowl when properly prepared is extremely sweet. Those being described as yardfowls are not fit for human or political consumption but should be on the dump condemned as unfit for any form of consumption.
They give yardfowls a bad name.
The Duopoly Rules
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Hal Austin
@ William
The president needs you as an adviser. You are one of few on BU speaking sense. For an addict to fully recover they must first admit they have a problem. For Barbados to recover we must first admit we are often incompetent and lacking in knowledge and not as clever as we think we are.
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JOHN2
John A 1105pm
Agreed that we must generate/ save as much FX that we can at all point in time BUT…..
The restoring of the 26% if we default again PRIOR TO THE COMPLETION OF THE ONGOING IMF PROGRAM (another three years).
We have over a billion in FX reserves and, with upgrades, may be able to return to the/other creditors IF NEEDED TO (but I hope not).
Relax!
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Hal Austin
@ John A
Once we accept that then it becomes critical for us to do all we can to increase our foreign exchange earnings. (Quote)
What is the purpose of this objective?
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Dullard
So the question remains. What purpose did White Oak serve?
If at the end of the day the overall cost to the taxpayers is higher and all the govt managed to do was delay some payments, what is all the song and dance about?
I’d be frankly embarrassed if I were any where near the so called negotiating team.
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Lorenzo
Skinner it seems from your rambling above that i mashed your toes by calling you out for who you are. Too bad you along with Austin , Mariposa, John A have been trying your utmost since May 2018 to pull down and criticize every effort made by this government to pull this country around after inheriting a total mess from the in my view worst government in Barbados history. Tell me you believe any government would default on loans except as a last resort?Use your common sense and take off the political blinkers.As stated i support this government why don,t you declare your support although we all know you all sing in the same choir so stop with the pretense, ain, fooling no one.The details will come.
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WURA-War-on-U
William…glad you see the UPHILL battle to KEEP REALITY…as a FOCUS.
contrary to what some may think…it is not over just because an agreement was reached to FURTHER STAGNATE the economy and FURTHER REDUCE the most vulnerable into pPOVERTY FOR A MUCH LONGER DURATION..
only dumber than dumb leaders and expectedly emptyheaded FOWLS would believe something has been achieved…when they have DELIBERATELY DELAYED THE INEVITABLE OUTCOME FOR NEARLY 18 MONTHS…..and according to the fake professor…were planning to for at least 4 more years…steupppps ×3.
Only the truly dumb would consider any of that progress in their perpetually developing but NEVER DEVELOPED small island.
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WURA-War-on-U
What many are STILL to learn is that posting pretty $50 words don’t mean a thing…when ya can so easily be SLAPPED WITH REALITY.
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Walter Blackman
William Skinner
October 24, 2019 6:31 AM
“Here we have millions coming in from the CLICO windfall. Why can’t we use it to create a progressive enfranchisement program for small businesses etc and have it properly managed.”
William,
I view the situation differently.
At the time of the meltdown, CLICO had massive liabilities. To get an idea of the value of the assets, the Judicial Manager (JM) tried to discuss the matter with CLICO’s top officials. These officials proved to be intransigent, evasive, and un-cooperative.
As time went by, Barbadians started to read horror stories of how some of CLICO’s assets had been sold to “family and friends” at prices determined, not by market rates, but by the whims and fancies of top level CLICO decision makers.
This situation produced a yawning gap between the value of the assets and the liabilities. As taxpayers, we were never really given a proper analysis of the size of the CLICO deficit by the Freudel Stuart administration. We were simply told that Leroy Parris was a friend and client of the PM. Our taxes were ruthlessly ripped from our pockets to make up the shortfall.
Shortfall, not windfall, is the operative word here. The less cash you collect for these CLICO assets, the greater will be the final shortfall. The greater the shortfall, the more taxes we have to pay.
We should therefore be demanding that government sells these assets for as much money as they can get.
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John A
@ Hal
To increase the FX earnings you mean?
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Hal Austin
@ Walter
All of what you say may be right. But had the judicial management review been given powers to subpoena evidence and witnesses we won’t be where we are. Even now it s not too late for the Mottley BLP government to correct these wrongs.
On the other hand, with a proper regulatory system, every senior appointment (people of influence) appointed by Clico would have been approved by the regulators; the design and actuarial assumptions of every product would have been approved by the regulator; the marketing of every new product would have been approved by the regulator; the company would have been stressed-tested every year.
in short, alarms would have been raised a long time before the final collapse. Then, of course, in a micro state the fusion of political decision-making and business is blurred.
We can either grow up as a nation or continue to shout from the side lines like a drunk worker on a Friday evening..
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Hal Austin
@ John A
The need to increase our foreign exchange earnings. What for?
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John A
@ William.
The rumblings of the yardfowls I pay no attention to as they contribute nothing but background noise. As you say if you step off the train you is a Dem. If you question anything you is a Dem. I have no time for the blinkered sheep who will will follow the shepherd even if he walks off a cliff.
What I practice is support of policies and one policy at a time. So if the shepherd puts forward some thing workable I support it. If later today another proposal is put forward that I can’t support then I am a Dem. If tomorrow I support another idea I am back as a B again. Lord It must be real work for some to keep my ledger updated. Lol.
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John A
@ Hal
Ok got you.
Based on what happened over the 18 month period when the creditors were not paid a blind cent, when the settlement was reached this amount was taken up first. From what I understand we couldn’t even find the money to pay that, so it was part paid and a bond issued for the rest. We brag we have a billion dollars in reserves and so we should as we haven’t paid a debt for 18 months. When that billion drops to 500 million as a result of debt service we have to make sure some buffer is there going forward.
Default is not an option this time around.
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Hal Austin
@ John A
So, if under the agreement in principle, we know our commitments. So there is no financial or practical reason why we could not process those payments through credit default swaps, de-risking our payments? Wouldn’t this be a better form of debt management, or do we prefer Russian roulette?
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Donna
Walter BlackmanOctober 23, 2019 7:49 PM
My apologies to BU readers for this highly technical comment, although somebody somewhere in the world might find this helpful, homework wise. You get to see what some of my work entails and I can picture most of you scrolling past and saying “yuck”.
++++++++++++++++++++++++++++++++
No apologies necessary, Walter but I have to admit that though I have been exposed to your subject matter I have to put your posts here on hold for a moment when my brain is functioning at full capacity.
So,,,,, scrolling past and making a mental note to return. It is good stuff.
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John A
@ Hal.
I agree with you but in the absence of details on the restrictions laid down by the creditors and the IMF I don’t know if such options are possible.
In the absence of such we may be back to as you say Russian Roulette
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John A
@ Hal
Also I believe the creditors may have boxed us in on this too because they are banking on the 6.5% over the extended period to make back what they discounted. Sadly we may well only have one track to run on this time.
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Piece the Legend
@ Mr. William Skinner
Earlier toy said a d I quote
“Of course in this forum any idea or attempt to influence government policy is seen as a direct attack on the nation…”
You are ironically correct.
And why does the ole man say ironically?
I will tell you why.
Because, the government yardfowls come here and make derogatory statements against the people and their ideas.
Yet, 3 months later, the inept BLP ministers come to the Bajan Public with the EXACT ideas that we float here POSSIBLY WITH A JACKASS NAME but it is the exact thing people float here.
Well not exact, but bastardized imitations which they strut around and their equally dumb colleagues thump the tables in Parliament when they present their stolen goods.
De ole man will prophesy this.
Nothing will come of this Mugabe led recovery.
Not because Barbados DOES NOT HAVE THE TALENT TO TURN AROUND OUR MISFORTUNES that the BLP and the DLP have crafted together BUT BECAUSE MIA IS A SELFISH WOMAN and she has surrounded herself with selfish men and women whose greed WILL PUT BARBADOS FURTHER INTO DEBT & DESPAIR
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William Skinner
@ Walter
Your position is understood. Just one question. Is it really wise to sell off the CLICO corporate Centre and then pay rent elsewhere.
Second questions: Even if it is a shortfall and not a windfall would pumping this money into a long term investment in an identified program or project to uplift the disadvantaged be retrogressive or progressive?
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Walter Blackman
Hal Austin
October 24, 2019 8:38 AM
“@ Walter
All of what you say may be right. But had the judicial management review been given powers to subpoena evidence and witnesses we won’t be where we are.
On the other hand, with a proper regulatory system, every senior appointment (people of influence) appointed by Clico would have been approved by the regulators; the design and actuarial assumptions of every product would have been approved by the regulator; the marketing of every new product would have been approved by the regulator; the company would have been stressed-tested every year.
in short, alarms would have been raised a long time before the final collapse.”
Hal Austin,
You need to wake up quickly.
The raid on CLICO was conceptualized as far back as 1988. The desired regulators were handpicked and installed from then onwards. Name one of the regulators that had actuarial training. Do you honestly believe that is mere coincidence? Don’t we have Barbadian scholars, year after year going off to do actuarial studies? Where are there? Why are they not allowed to make a contribution in their country?
By 2003, David Thompson was waving a cheque for $75,000 from a subsidiary of CLICO (Caribbean Commercial Bank) which was written personally to Owen Arthur. Owen Arthur was PM of Barbados at the time and Minister of Finance with a sacred responsibility to defend and protect the interests of financial institutions operating in Barbados. As PM, he could provide no services or goods to CCB.
From the moment Owen Arthur cashed that cheque from CCB for $75,000 written to him as an individual, he foolishly placed himself on a legal hook for the rest of his life. That is my personal view.
David Thompson proved to be even worse. One of his first major acts as PM was to betray CLICO policyholders and to help rob the company out of $3.3 million through collusion and chicanery. His company’s phony invoice charged for legal services provided by Sir Maurice King. Sir Maurice publicly denied that he had performed these services. The severity of PM Thompson’s CLICO sins and transgressions turned out to be more than 40 times greater than those of Owen Arthur.
By the time PM Freudel Stuart decided to open the door and let in the Judicial Manager, the “dog was already dead” as intended. The JM could only concentrate on what little meat was left on the carcass. PM Freundel Stuart said they scraped off “dizzying millions”. No Barbadian company or individual was allowed to tender for the job. The Judicial Managers did not possess any special skills or experience to give them a monopolistic hold on the assignment.
The CLICO debacle should make all of us feel ashamed to be Barbadians.
As Winston J. Messiah used to say: “I sincerely hope that I have helped you”.
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WURA-War-on-U
Well…to hear Hal tell his version…NO corruption took place by the thieves…Leroy Leper, Thompson etc in the Clico scam….despite there being an actual lawsuit filed against the former directors of CLICO Haynes et al for various crimes against policyholders..
Walter we have been telling him the very same thing for 5 straight years…..don’t hold ya breath that he will believe you.
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Walter Blackman
William Skinner
October 24, 2019 9:29 AM
“@ Walter
Your position is understood. Just one question. Is it really wise to sell off the CLICO corporate Centre and then pay rent elsewhere.”
William,
Take a look at this hypothetical example of CLICO on the date of dissolution:
Liabilities = 4 billion
Assets (including estimated monies to be collected from sale of property) = 3 billion
Amount to be charged to “innocent” Barbadian taxpayers = 1 billion.
I am sure that everyone of us could come up with ideas as to how we should use the monies from the CLICO sale (e.g. build a new stadium, give each squatter a house and land, purchase ferry boats to transport us through the Caribbean etc)
The monies are earmarked to settle the CLICO fiasco and that is how they should be used. If they are not used for that purpose, taxpayers will have to pay more to settle the CLICO debt.
We need to close off this sad chapter of our country’s history forever.
I will take a look at your second question next.
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Walter Blackman
in my response to Hal:
Where are they? (not there)
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Walter Blackman
I haven’t heard my friend Pachamamum recently. I am getting worried because I know that he really enjoys discussing these types of topics.
Pachamamum are you ok?
Not coming out to play today?
LOL
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Hal Austin
@ Walter
First, financial regulators do not have to be qualified actuary. In fact, how many CEOs of insurance companies are actuaries? All a good regulator needs is actuarial expertise on the staff or access to an independent actuary. It is like saying to be a company CEO you must be a qualified accountant.
Nor, for that matter does a financial regulator has to be a lawyer, although there are lots of lawyers. Equally, financial regulators have access to legal advice. Was financial regulation part of your training as an actuary, apart from as an introduction?
I am surprised you are joining in the nonsense about Clico, the usual Bajan hysteria. Even if all of it is true, we had a judicial management review, why was it not given the necessary powers to subpoena evidence and witnesses? Barbados is a nation of lawyers.
Why has Mr Parris not been interviewed under caution? What about Mr Thompson’s probate report, which is a public record? How about the financial records of the company? Under company law every company, limited liability or listed, must file annual financial reports. Why not Clico? Who were the company’s auditors? What did their reports say?
Cut out the gossip and stick to the rule of law, unless you are saying the rule of law does not exist in Barbados? As to the raid on Clico being ‘conceptualised’ in 1988, absolutely nonsense.
It is still not too late for a proper judicial examination of the failure of Clico, in fact it is important, even if not to prosecute individuals, but to learn lessons.
In fact, I recommend the lessons of Equitable Life, and the tens of thousands of pages written about it, including an inquiry report by a Scottish judge (I can send you a copy of the 700 page report, if you want) and a PhD thesis by a bright, young Jamaican woman, who would certainly love to come to Barbados to talk to our officials.
We must get real. Clico failed largely because of administrative failure. For Heavens’ sake, Clico allegedly offered a product for sale when it was told by the regulator not to. It was reported to the DPP and nothing happened. We have the people, the scholars, the titles, the degrees, but not the competence.
You patience knows no bounds. You may recall a Richie Haynes in his zenith referring to Clico companies in Barbraâs marginally run at best. It supports your point that the authorities were in the know about the failing operations.
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Walter Blackman
William Skinner
October 24, 2019 9:29 AM
@ Walter
“Is it really wise to sell off the CLICO corporate Centre and then pay rent elsewhere.
Even if it is a shortfall and not a windfall would pumping this money into a long term investment in an identified program or project to uplift the disadvantaged be retrogressive or progressive?”
William,
If you were to take a close look at the government estimates of expenditure, you should see a line item called something like “maintenance of property”.
Taxpayers pay millions of dollars yearly to maintain government buildings and properties, but based on the amount of buildings that are condemned as being “sick”, and the unkempt appearance of many of them, we naturally have to ask: “where is the money going?”.
Is it possible that some businesses are receiving cleaning contracts from government and doing shoddy work? And the managers of these departments and ministries are remaining silent?
Apparently, the new craze in government is to have civil servants work in new, high rise buildings. Consequently, many structurally sound, but abandoned government buildings dot the landscape in Barbados. I believe that all off these buildings can be repaired, repainted, and leased to enterprising Barbadians at concessionary rates.
I have no problem with identifying programs and projects to uplift the disadvantaged (whatever that means or whoever they are) but like every responsible Barbadian, I have to ask: “where is the money coming from?”
If we use the money from the sale of CLICO assets to fund these programs, where is the money going to come from to repay CLICO’s victims?
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WURA-WAR-on-U
“unless you are saying the rule of law does not exist in Barbados? ”
We have also been telling Hal that for 5 STRAIGHT YEARS…..and that BOTH GOVERNMENTS HAVE ALWAYS BEEN CORRUPT…so don’t answer it, the ? is rhetorical..
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Walter Blackman
WURA-War-on-U
October 24, 2019 10:42 AM
“Well…to hear Hal tell his version…NO corruption took place by the thieves…Leroy Leper, Thompson etc in the Clico scam……
Walter we have been telling him the very same thing for 5 straight years…..don’t hold ya breath that he will believe you.”
Hal Austin
October 24, 2019 11:01 AM
“@ Walter
I am surprised you are joining in the nonsense about Clico, the usual Bajan hysteria.
Cut out the gossip and stick to the rule of law…
As to the raid on Clico being ‘conceptualised’ in 1988, absolutely nonsense.
We must get real. Clico failed largely because of administrative failure. .”
Hal Austin,
You have proven WARU to be correct.
As far as I am concerned you have also had the last word on this CLICO issue.
I am now going to pick up “Alice in Wonderland”, replace Alice with Hal, and reread the book very carefully.
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walter Blackman
David
October 24, 2019 11:17 AM
“@Walter
You patience knows no bounds. You may recall a Richie Haynes in his zenith referring to Clico companies in (Barbados) as marginally run at best. It supports your point that the authorities were in the know about the failing operations.”
David,
If we were able as Barbadians to sit down and discuss some of our experiences dispassionately, the scales would be removed from our eyes.
In 1988, I was interviewed for a job in Barbados.
The interviewer told me: “Walter, you worked in the civil service and we have no respect for civil servants. You worked at CLICO, and we do not view that company as a legitimate insurance company. If you come to work for us, you will have to start at the bottom of the ladder and work your way up.”
I told her, “if you view me as being so useless, why would I want to work for you? To be exploited forever? You are better off searching for a modern day slave.”
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Hal Austin
@ Walter
Good bye, but before I go are you saying there is no rule of law in Barbados? I am aware that Bajans like smear and gossip, but I thought you were above that. My mistake. I say again, Clico failed largely because of administrative incompetence, not corruption. Corruption is an excuse. If the allegations are true, the state allowed Clico to continue functioning like a bandit.
How then do we explain Sagicor investing in illiquid residential property and the CEO of the stock exchange advising people to invest in equites? Where is the regulator? Give me a single example of a model financial regulation in Barbados. I say again, read the various reports on Equitable Life (by the way the CEO was an actuary; it was the biggest insurance scandal we have had in the UK for years). READ IT.
I hope you have also read Alice in Wonderland and fully understand it.
I say again, Barbados is a failed state.
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William Skinner
@ Walter
Thanks for your response. However there was a school of thought that suggested that the policy holders should not have been bailed out by the taxpayers.
Mr. Straughn , who is now a minister in the ministry of finance said that the government should not have rescued the policy holders.
In the interest of the taxpayers let us hope that we get reasonable offers for CLICOS assets.
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William Skinner
@ David
Both parties allowed CLICO to get away with malfeance. I recall Leroy Paris saying to Owen Arthur: “ I have given you what you want now you give me what I want.” I had never heard any corporate person address a PM like that in public.
Then we had Thompson throwing money toward CLICO.
With proper and enforced regulations this travesty would not have occurred. And if it had , somebody would have been in a minimum security cell.
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