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.
This blogmaster is in record blaming a catastrophic failure by the regulator. You should note however it does not absolve the various actors from wrong doing. Some of are very aware.
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WURA-WAR-on-U
How many TIMES must we post that the REGULATOR DID HER JOB….re EXPOSING CLICO/Leroy Leper, Thompson and the gang of THIEVES….AND WAS punished by being PLACED ON PERMANENT LEAVE AT TAXPAYERS EXPENSE…BY BOTH CORRUPT GOVERNMENTS…ah beleive she is STILL ON LEAVE…
TRY to REMEMBER…
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Hal Austin
@ William
I do not want to trivialise people’s experiences, but I am being asked to accept that public servants of integrity, knowing that a company is out of control, turned a blind eye for whatever reason, including fearing the sack. I do not accept this. Just look at the senior US diplomats giving evidence against Trump.
If our civil servants allow themselves to be politicised then that is their problem, but it is not an acceptable excuse. I will give you an example of what I mean. One year I arrived at the airport on the same flight as a friend when a former minister walked through the customs section, picked up the friend’s luggage and walked out.
Not a word was said by the duty customs officer. And that was shortly after the Bird family were accused of all kinds of things in Antigua. Ethically trained officers would have challenged him.
If we accept the allegations surrounding Clico, how then are we going to clean up the mess? It is not inevitable. But if people allow a job, status, a mortgage to destroy their morality and professional ethics then what can we do?
May I suggest calling in an outside organisation to investigate Clico specifically, and at how financial regulation operates generally? Is this a policy the Mottley government can adopt?
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WURA-WAR-on-U
Even Miller is fedup of reminding yall about what really took place under all these thieves..
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WURA-WAR-on-U
“but I am being asked to accept that public servants of integrity, knowing that a company is out of control, turned a blind eye for whatever reason, including fearing the sack. I do not accept this.”
no one is asking you to do or accepting anything…it is what happened, and Vernese Brathwaite is LIVING PROOF….so who gives a shit what you accept…ya CANNOT CHANGE REALITY…
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WURA-WAR-on-U
Ah don’t think even after all these YEARS Hal understands that Mia is god mother to David THompson’s children, what call in outside organizations what..DBLP in an incestous criminal organization…PRETENDING TO BE ENEMIES for the benefit of their ignorant, backward, emptyheaded FOWLS…
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Donna
WURA,
And what happened to the Financial Controller at Harrison’s Cave again, when she attempted to blow the whistle on a certain attorney’s $750,000 legal bill?
PS. He was a DLP minister’s cousin and in great financial difficulty.
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WURA-WAR-on-U
Donna…that was ALSO discussed here on BU multiple times….these decades OLD corrupt practices have brought the island to its KNEES….both governments have WILLINGLY, VOLUNTARILY participated in destroying the island and believe they were and STILL are ENTITLED…
and this present government got the goddamn NERVE to believe that it is black people should PAY FOR THESE CRIMINALS IN PARLIAMENT CRIMES AGAINST THE PEOPLE….and their criminal minority BRIBER friends should CONTINUE to get rich off the same people like the goddamn parasites that they all are..
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Lorenzo
Hal Austin got to be DLP koolaid drinker to try to shift the blame away from Mr Thompson who prior to being PM was also Clico, s lawyer and a close friend of Mr Parris.After becoming PM took up 10 million dollars of taxspayer, s money and pumped into Clico.All the while had ties to a 3.3 millon dollar transaction through his company while his wife was office manager and this jackass believes Mr Thompson did not know of the goings on in Clico?Why because he met him and considered him bright without being able to produce evedence of any thing of significance he has ever done except being a pretty talker and bullshitter in my view.Clearly you did not know the man or you believe in fairytales.
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William Skinner
@ Hal
The game is simple: the politicians engage in shady dealings and then blame the civil servants. Not absolving civil servants but I still maintain that we have one of the best civil services in the commonwealth.
Everybody is now castigating civil servants but we find time to castigate nurses for the problems at
QEH ; police for rising gun crimes; teachers for education problems; bus drivers for lack of buses; sanitation workers for the piles of garbage and never holding the powers that be responsible or accountable.
These two parties have wrecked the country and then pretend they are arch enemies. It’s the old play book and we fall for it every time.
From Greenland to CLICO same old crap.
While the debate on the foreign debt on BU was enlightening I picked up a fair amount of naïveté.
Too many of us are pretending that we don’t know the political monster we call the Duopoly. We expect leopards to change their spots. This country presently belongs to the Barbados Labour Party and the Democratic Labour Party and they will collectively destroy anybody in their path.
Notice the editorial of Barbados Today asking Atherley to pass on any information he has about drug pushers backing politicians. Notice he hid in parliament and challenged his former political friends to dispute what he said and not a man moved.
Caswell will soon need police protection if he pushes much further and bet all your life savings that Atherley will ask him to leave.
Notice Owen Arthur now accepts hands out from the same woman he said was a dictator and unfit to be the Prime Minister. It’s a game.
Pay attention Piece…..pay attention .
I am backing WURA
The Duopoly Rules
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Mariposa
Ryan Straughan trying to fill in the glaring holes in the agreement
Guess. He tells all the agreement has not be finalised because it needs to be seen by ministers of govt
Any bets that anyone of these duffus would use the principal of combing through the fine print details of the agreement
No bets
Yeap just a bunch of nodding bobbing heads
As discussed above the matter will be debated next Tuesday in the House. Hopefully relevant details will be shared to better understand the deal made with the Committee..
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Piece the Legend
@ Mr William Skinner
De ole man is paying attention very closely.
So much so that the very morning that the Nation carried the comments de ole man had a submission written for Barbados Underground which the Honourable Blogmaster will publish in his scheduling
The graphic which is shown below took a day longer but you can be assured that I am not missing a heartbeat in this one.
In the article you will see a thread that sheds light on your warning
The issue in Good Governance lies with the governed NOT HOLDING TRANSIENT GOVERNMENT ACCOUNTABLE.
people are frightened to tell de Minister yah doing shy$e raw like de ole man does do it.
I doan eat at none of dem and since I does doan BREADFRUIT and rice at a feller, dat got all of dem fraid de ole man mouf.
What is de right ting to do Mr. Skinner?
You done put in de years to get a pension and you cud go home and relax BUT WHAT DOES CAUSE YOU TO COME BOUT HERE and contend with the Rented Jackasses?
Men like you and Mr Austin and the Sage Miller, and Mr. Codrington and Dr GP and many others DONT NEED THIS STRESS wunna pensions are assured.
So why fuss up?
Its because it is the Right and Honourable thing to do Mr Skinner and the type of man that you are WILL NOT DO LESS
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William Skinner
@ Piece
Well said.
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John A
@ David.
That debate will be based on politics and not economics. It would not surprise me if one of them will claim the process saved us millions, totally forgetting to deduct from the savings what the new loans will cost us.
John A
October 23, 2019 11:05 PM
“@ john2
…..we in fact may owe more after the restructuring…”
john2
October 23, 2019 9:51 PM
“A
You did not use the word lump sum but u seem to be look(ing) for one.”
John2,
I might be wrong, but I suspect John A is trying to make the following point:
Assume that I am an international creditor, holding $300M in 6.625% Barbados Bonds with a maturity date of 2035.
You are the Government of Barbados, and after unilaterally refusing to pay me my money on the dates agreed to, you summon me to the negotiating table.
Before any discussions start, I tell you that market interest rates have dropped considerably and I want my $300M in bonds to be revalued at October 1, 2019 using a market interest rate of 3%, before any debt restructuring can be considered.
My bonds now valued at a market rate of 3%, instead of 6.625%, mean that the government owes me $436.7M instead of $300M.
Looking through John A’s eyes, I have gained an additional lump sum of $136.7M, and this is the price you have paid for missing the payments you owed me.
At the negotiating table, I tell you that it is okay to repay me my $436.7M (a lump sum gain of 136.7million) using an interest rate of 6.5%, and a maturity date of 2029.
The Ministry of Finance then issues a press release stating the following:
“Eligible debt” – 6.625% Notes with a maturity date of 2035.
Restructured debt – A bond with annual coupon rate of 6.5%, maturing in 2029, with a face value in excess of $400M.
Based on that press release, no one would ever be able to figure out that I had a lump sum gain of $136.7M from the restructuring exercise, simply because they have not been informed that the Face Value was $300M before the restructuring.
PS: As a Barbadian, I believe that I would have really enjoyed being part of that negotiating team representing the interests of Barbados. I suspect some of the commenters here would have enjoyed it also.
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Walter Blackman
John A
October 24, 2019 8:59 PM
“@ David.
That debate will be based on politics and not economics
John A,
The debate should be based on neither politics nor economics. it should be based on finance.
I expect the PM to be well briefed, and I would love Ryan Straughn to grasp this opportunity and perform well. Marsha Caddle should also be able to make a worthwhile contribution.
The lawyers will find “something” to say. Hopefully, they have been reading BU over the past few days.
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Hal Austin
@ William
I have spoken before of the Bajan Condition, part of which s to wallow in myth-making while ignoring the reality. In terms of Clico, all the president has to do is appoint a judicial commission (headed by a foreign judge, with a workers’ representative and a regulator from another jurisdiction), with a team of advisers made up of a lawyer, an accountant and an actuary.
It will have powers to subpoena evidence and witnesses and will report back in public in six months; all evidence will be given in public. If the commission finds evidence of a prima facie criminal offence, then that individual or corporate will be prosecuted.
In policy terms, out of the report will come recommendations for improving the system. One I can suggest now is giving the regulator the authority to prosecute corporates, leaving the DPP to deal with individuals.
@Willam, you are right. The political system is rotten and that is contagious, infecting all institutions. Is Barbados a failed state?
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Enuff
There’s nothing I enjoy more than seeing folks vacillate and capitulate. Egofowlism exemplified.
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John A
@ Walter.
Thanks for trying to further explain where our additional cost will come from to some who only see fields of flowering orchids ahead.
I hope the debate as you say is open and honest with the Bajan Public, but I sincerely doubt any present will do what you just did above and breakdown the true expense of the restructuring. It would not be politically beneficial for the Bs to do it and I don’t see anyone on the other side capable of it either.
I think we need to appoint you advisor to Atherly for that sitting so you can go and as we say ” skin out” the facts. We can’t pay you much but you will at least get free catered food and I know I will enjoy the spirit of enlightenment you would leave those present with.
It’s the revaluation of the bonds that I was telling john2 was going to murder us with cost exactly as you confirmed. In a way the delay worked for the creditors nicely, as not only did they get back every cent but during the 18 months interest rates fell hence increasing the bond value. So they are smiling now all the way to the bank. As you say the face values were never shared nor do I expect them to be as that will be bad politics. However I will still listen to the debate out of share interest.
The point I was begging people to understand is that the fall in interest actually means the bond values have increased hence pushing up our liability. When that and the protracted period are coupled together we by share maths will now owe more than we did before.
Anyhow who want to bury their head in the sand feel free access to the beaches still free.
You want me call Atherly and beg him for a seat for you at the table Tuesday?
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John A
@ David.
Remember last night I told you some politician was going to jump up and talk about the millions saved without deducting the cost of the extension from the savings?
Well glad to see they didn’t disappoint. Lol
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WURA-WAR-on-U
That is how dumb they are, they would never tell you that if they were 1/8 as intelligent as they pretend to be, they could have done the same thing themselves, how hard is it to keep ya own people in poverty to appease creditors and IMF….and would not only have saved the taxpayers 85,000 US a month, but the 54 million paid to white hoax, which could have bought BUSES and GARBAGE TRUCKS…..but now, here they are boasting and gloating and showing up how they never knew what they were doing to begin with and LIED TO THE ELECTORATE while wasting millions hiring consultants…….as usual.
“Government’s was vindicated in its decision to pay the London-based consultancy firm, $27 million to negotiate this country’s local and foreign debt. This is the position of Minister in the Ministry of Finance Ryan Straughn even as he revealed this afternoon that the Barbados External Credit Committee did not represent the entirety of the external debt stock.”
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William Skinner
I am at the Garrison Savannah. The results of the race have been announced ; people have lined up and cashed their tickets and within forty or so minutes the next race is going to run.
I go and sit with some friends and we discuss the race that is over. We talk about how the race was lost; the strategy of the jockeys; the condition of the tracks.
Then the boogie sounds ; last call to place bets. The next race is soon going to run.
That’s the beauty of the races.
In the meantime all the losing tickets are being tossed about by wind. Bright and early the next morning, usually a Sunday , the ground staff will pick them up and dispose them.
And suddenly just so it’s Saturday again or maybe a bank holiday and we are back at the track.
And then…………….
@ Hal
I still cannot agree that Barbados is a failed state. But your position gets more ominous by the minute.
BTW I see that Attorney General Marshall has taken Atherley to task over the drug connections with politicians. The AG is correct. Atherley should not expect that we are paying him in excess of $150 000 per year to be sensational. After the lashes the DLP got , the people maybe a bit more demanding and Atherley should be advised to only come when he’s prepared to expose corruption. He is already collecting a huge salary under false pretenses. In real terms he hit the political lottery. I await his response to Marshall. But I am scoring one for the AG.
Not a failed state yet but………..
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John A
@ waru
Ask yourself one question how can you restructure $500M in debt as outlined by them and save $1 billion in the process when as Walter pointed out in Great detail the cost of the debt has in fact increased?
Forget the window dressing and tra la la and think for wunna self.
To focus on what was saved and omit the cost of the extension is lunacy even if it does make for good politics.
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John A
@ William.
We will see what Atherleys true worth is on Tuesday at the debate. Will he be a Koolaid drinker or does he have people in his party capable of breaking down data and educating the public?
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Mariposa
What else can be expected of Atherley a lame foot donkey trying to exploit the political good will of barbadians
After all he has proven he can be a tricked pony
Like his past political teacher and leader
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Hal Austin
@ William
You cannot have it all ways. If the institutions are failing and the duopoly is corrupt, how then can the state be functioning. If our democracy is flawed then the state is flawed. Is that not correct?
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William Skinner
@ John A
Surprising that you don’t know Atherley’s worth. It’s $150, 000
Per annum.
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William Skinner
@ Hal
I think that it is possible to be flawed but flawed cannot be in the strictest sense mean failed. I still think that we are some distance from a failed state. The Duopoly is politically corrupt and its policies are just warmed over soup but the state itself still functions. While I understand your position and I recognize it’s gaining currency , I beg to differ at this point.
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Vincent Codrington
@ John A
Wunnuh too like to mek mock sport at poor black people. I hope wunnuh are prepared for the consequential collateral damage.
All sport aside,do you really expect to get any better answers on Tuesday than you had on Thursday? The Good Book advises that we read, mark, learn and inwardly digest.
If we engender any such hope we are part of the problem ,not the solution.
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John A
@ WillIam.
Well played sir. Lol
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John A
@ Vincent.
I like you see Tuesday as an event for political grand standing, pontificating and an opportunity for those involved to score brownie points.
I still waiting to hear how you can save $1 billion on a $500M restructuring though.
Wuhloss I deading here 😂
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Miller
@ John A October 25, 2019 9:20 AM
“Ask yourself one question how can you restructure $500M in debt as outlined by them and save $1 billion in the process when as Walter pointed out in Great detail the cost of the debt has in fact increased?”
++++++++++++++++++++++++++++++++++++++++++++++++++++
Something just does not add up here!”
Where is Jepter “Physical Deficit” Ince when he is needed most?
You mean not even a drop of verbal diarrhea from the garrulous mouth of the former MoF now ‘lying’ even lowe(r) than Lowedown the denizen Denis(e) of the drained swamp?
Shouldn’t a comparative analysis be made between the future ‘forex’ cash outflows under the old debt repayment arrangements over the life of the ‘old’ bonds and the revised forex cash outflows as negotiated under the new repayment schedule(s); all expressed in ‘real’ hard forex terms?
Only where there are savings in future outflows expressed in real or discounted terms can that “$ 1 billion” figure of ‘savings’ be promoted and indeed confirmed.
It would be more easily ‘sold’ to a discerning public if the benefits accruing from the renegotiated foreign debt were promoted more in terms of opportunities of flexibility (more like exploiting the opportunity cost of time) to ‘buy’ wiggle room so that the foreign reserves are not unduly stressed and fiscal maneuvering not significantly compromised.
In the land of the financial blind the one-eyed bull-shitter is king.
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Hal Austin
@ William
Are you accepting that the state is flawed? If so, plse point out some of the flaws.
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William Skinner
@ Hal
As you often suggest there is a glaring lack of proper regulatory practices. We have an electoral system that a party can secure forty per cent of the vote and end up with representation that does not reflect its popularity; an educational system that is essentially out of step with national needs; political interference in law and order and the judiciary; an Auditor General Report that is laughed at by politicians ; flawed housing; public transportation and health policies; a lack of legislative teeth to counter corruption.
I think you get the picture. However nothing above is indicates a failed state.
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Piece the Legend
@ walter Blackman tHB – you dun know that, while truncated because of the depth of your commentary, the letters still have to be shown.
Your submission at 1.29 am has earned you an Honorary Stoopid Cartoon Walter.
Well done!
The fact is Walter, you are real RH bright, notwithstanding your character flaws, you are real sharp.
Like I recently been saying, de grandson get a big promotion from de *** Bank and he does doan get nuff time to do much tings for de ole man.
So I does have to wait pun he.
But be assured Walter dat you gine get your Stoopid Cartoon done!
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John A
@ Miller.
Agree with you 100% but the true cost is not politically beneficial to do what you and others like me would like and see done.
What the process bought us wad time and at a price. If the Bs stick only to that argument they will be on safe ground.
Egos are however big here and you can expect more unfounded statements Tuesday like the one we already were ” blessed” with.
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John A
@ pieces.
The reason Walter went to such depth is to show by way of formula that when the interest rate falls on a bond the bond cost increases and because we have to honour them our cost will imcrease. For those that want to open their mind he gave them the facts. For the other ” hard ears people” they are free to create a new reality in la la land where cows fly and pigs talk.
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Hal Austin
@ William
According to the BU senate, the rule of law does not function in Barbados – from Clico, to accused people being remanded for ten years, cases normally taking two to three years to come to court, white accused not being prosecuted, etc; we have an educational system which is not only out of step with national needs, it is dysfunctional for a modern world; we have a crisis in social housing if the squatter problem is anything to go by; the NIS has been abused by both governments and, even more, its lending policies are chaotic; the financial sector, in particular banks, is in bandit territory; public transport is a mess; the health service is in melt down; the government, like the previous one, has no vision.
In short, there is no rule of law and our administrative class has failed us. Put simply, the state has failed. Or, if you prefer, it is in intensive care.
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john2
@ WB
I don’t have time to go through the calculations but from what I understand from A.
The creditors are getting more in the long term than they would have IF we were ABLE TO PAY them.
I have no problem with them getting more in the long term… After all they have to pay they advisors and they have to adjust their expectations to accommodate us .
What I think A is pushing is that WO was hired to save us money so if in the long run the creditors profits are increasing then WO/gov has failed.
In others words instead of the creditors gaining 136M extra in the long term ( or we having to pay more), he wanted to see the we had to pay less = instead of 300m maybe we ended up having to pay only 250m after all is done giving us a lump sum saving of 50m on total debt (P +I)
I am saying no you cannot look at it like that. Although we have to pay more in the long term (10yrs), WE/BARBADOS are not paying/saving X amount NOW(short and medium term).
That is X amount of money that is not going into the creditors pockets as was first schedule.
It is also X amount of money that is not coming out/reinvested in our economy.
Now can you calculate the amount of profit we will generate from this “reinvestment” into our economy over the ten year period?
The difference between what we make with the savings up front minus what we end up paying the creditors will determine if we made a profit or a lost (at the end of the restructured period).
As I said before, we won up front and the investor won at the backend I don’t see anything wrong with them getting a little more in the long run.
You have to look at both ends of the equation not just one. Both sides are profiting from the agreement.
I have to run,
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Donna
Those figures always seemed suspect to me. Couldn’t understand how that could be. Walter and others have broken it down nicely.
Don’t think many Bajans have fallen for it either. They just would not be able to back up with calculations.
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William Skinner
@ Hal
It has been in intensive care for over forty years. It will now according to the IMF be comatose for at least 15 years.
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Walter Blackman
Donna
October 25, 2019 8:18 AM
“https://barbadostoday.bb/2019/10/24/vindicated-2/
What say the experts?”
Donna,
Thanks for the link.
I am not parading myself as an expert. I am simply trying to give something back to my country and its people who spent thousands of dollars to educate me.
After reading the article produced by Barbados Today and noting the figures given by the Minister of Finance, we are given new information on the debt involved:
150M (bonds due 2021) + 220M (bonds due 2022) + 119M (bonds due 2035) + 225M (credit Suisse) = 714M total*.
* The Minister said that there were a few smaller issuances to the BADMC and the BIDC. No figures given, so we shall exclude them.
The Minister is reported as saying that the threshold with respect to what the credit committee held on that debt was about 60%.
I don’t know what this statement really means, but if it is saying that the government is only considering 60% of that debt in the restructuring exercise, then the total face amount of the restructured debt should be $428.4M (714M x 60%)
The press release from the Ministry of Finance said the face amount of the restructured debt was in excess of $500M.
Were the bonds revalued at October 1, 2019 before the debt restructuring took place? If so, did the external creditors experience an increase of at least $71.6M in the value of their bonds as a result of the revaluing exercise?
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Piece the Legend
@ Walter tHB said in low tones,
De ole man notices that John A (who is ***) is now begging for a job for you at the seat of the People’s Party for Democracy and Development!
Heheheheh
It is a very interesting development for two reasons
The first is that I here deading with laughter not only about the VOLTE-FACE that is being promoted on your behalf, by him, For you…
But, in addition to the cross compliments that the two of you are expressing to each other, what I note is the fact that your single/dual faced message, an oxymoron superlative to be sure, IS REALLY QUITE SENSIBLE.
as an “advisor” to the PDP, as long as your political aspirations are ***, the fact is that your perspective, HAS ITS BENEFITS.
But I also need to caution you about the superlative skills of the PDP’s Bruce Hennis.
Dat man IS NO SLOUCH! He is damn bright too, and, whereas you have a few Sandiford back stabbing demerits, HE HAS NONE OF THAT BAGGAGE.
One can be assured that when the Leader of the Opposition the Reverend Atherley rises on Tuesday, his message will reflect the genius that resides in the PDP in the form of Mr. Bruce Hennis.
De ole man encourages you to go to the PDP facebook page and peruse his contributions there.
They are fantastic.
If you had listened to de ole man 2 years ago, you would not have spent “your seed” on the waste foops DLP Walter but you chose not to listen
You AND ALL THOSE HERE WILL STAY STILL and see how GOD will bring the People’s Party for Democracy and Development to Ascendency!
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John A
@ Walter
Good question but without the face value of these bonds being given to us at say September 30th 2019 we can only surmise certain data. Hence the following undeniable facts.
A. The closer the old bonds were to maturity those said bonds will now cost us the most to restructure.
B. If we accept that the rule is once interest on a bond drops, then the bond value in this case must increase, for anyone to therefore claim different is misleading to say the least.
C. The true cost WILL end up being higher based on formula not assumption, simply because we have to honour the bond in tens years time.
This is a case of where one can win shorterm but lose long term. All I want those Tuesday to do is speak to the full reality. We deserve more than half truths like the one that has already surfaced, where it was claimed we will save $1 billion on a $500 million debt reschedule. Please on Friday if wunna going stand up and talk about the front end saving, remember to deduct the total cost inclusive of the added interest cost over the next 10 years and the cost to us of the revalued bonds.
I know that is wishful thinking but please wunna try, I beg yuh!
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Donna
Walter,
You do qualify as an expert, I suspect. It is always better however, to let somebody else give you the title. Respect is better earned than demanded. But your behaviour has shown that you know that.
So…possessed of a good night’s sleep I have revisited your calculations and full brain capacity has allowed me to absorb them.
I appreciate your enlightenment in these matters as I do Dr. Lucas’ in others and Lord knows I miss the gentle brain stimulation of Jeff Cumberbatch on Sunday mornings.
“Just a spoonful of sugar helps the medicine go down in the most delightful way!” lol
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Hal Austin
@ Walter
The rule of law is the beating heart of our democracy and social policy the brain. Is the patient brain dead, or is the heart only working through a defibrillator?
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