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.
We come full circle. Tuesday will reveal all. Until we speculating.
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Walter Blackman
John2,
If you have money for anybody and don’t repay them, they will become furious. Ask Contone.
Given our unilateral decision to default, the creditors would naturally have their advisors making demands of the Barbados government to rectify the situation. They would try to get as much as they could from us.
The government of Barbados, on the other hand, suffering from a reduced ability to pay, would have to seek out advisors who can secure annual debt repayments that are manageable, and who can hammer out an agreement with the “angry and ravenous” external creditors to the satisfaction of all concerned.
This confrontational situation was captured in Barbados Today on November 30, 2018:
“Amid signs of growing impatience among Barbados’ foreign creditors – represented by the umbrella Barbados External Creditor Committee – Government’s Special Advisor on the economy Professor Avinash Persaud is accusing them of trying to pressure Government into submission.”
We have been recently informed that an agreement has been reached by the two contending parties. From all appearances, the government believes that it is now better positioned to make its debt payments going forward. The creditors presumably believe that they have gotten as much as they could under the circumstances, and they are happy.
You, John A, I, and all patriotic Barbadians are breathing a sigh of relief to hear that the uncertainty has disappeared, and for the most part, we are all glad to know that government’s efforts have borne fruit and it has managed to achieve its objectives.
Of course, many of us will baulk at the amount of fees paid to White Oak, but that is a different matter.
What John A seems to be peeved about is the fact that our local politicians will undoubtedly now try to impress upon Barbadians that they saved the country so much money, and that the fees paid to White Oak were worth the effort. To his mind, they will try to do this in a deceptive manner, and will make sure they hide the amount of monetary concessions that they had to make to the creditors.
In the final analysis, the two of you agree on the major points.
I hope that I have encapsulated John A’s views accurately.
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John A
@ Walter.
Yes sir you have spoken to my concerns correctly. I feel that if you are going to ask the public to accept austerity, the very least you own them is honesty. We must not hide the facts behind doors while opening Windows. If it was me the road I would take when talking to the people is below.
” peoples we did not have the money to pay the debts as scheduled because of the fact the payments bottled badly in some years ( pause blame sinkler etc). What we therefore did was reschedule the debt which in the long run will cost us more, but We had no option(pause all hail white Oak) . To you I ask that you understanding that we had to do this to protect the bajan dollar and although it will be an increased burden for us, the sacrifice was worth it as we had no option. ( pause blame sinkler now and Worrell for the run away printery).”
In Bajan terms now wunna brace for prolonged austerity and don’t blasted well complain neither or we dollar and the guayanese one might of ended on par.
How I would of loved to of heard the greats like Errol Barrow and Tom Adams debate this in the house! It would of been an experience few could of matched.
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John2
Walter
I am now on my phone so forgive any junk
Walter u are a diplomat
A opinions or what he is talking about seen to be evolving day to day, hr by hr
A
If bim did paid the creditors on time for the last 18mnts we would probably be on pay with Guyana/ venz by now or at least heading there
The fact that we didn’t pay allow our economy some breathing room
Now calculate where we would have been if we had paid. Vs where we are today without paying
U will see that all we have saved so far is way more than 10x the extra the creditors will make at the end
Stop blocking out the gains we are making at the front end(and have already made)
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John2
A
Is being blinded by the extra profit the creditors are making which IMO is not a problem
Subsequently, their fees will have to be included in any determination of the financial conclusions of the restructuring.
At some point, they will have to submit an invoice to claim their “success fee”? Possibly multiple.
Given the agreement in principal to date with foreign creditors, only covers 50-55% (??), it seems early to project/assume all other agreements reached will be the same as those being reported.
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John A
@John 2
And who do you think will have to find the money to pay their extra profit but us the taxpayers?
Without going over everything that was discussed yesterday can we agree on at least a few points.
The formula Walter used to revalue bond worth and cost is a globally accepted formula used by all bond traders, he did not create a formula to support my argument. Can we therefore agree on that?
Secondly based on that globally accepted formula can you agree that when interest on bonds fall the bond price increases. Can we agree on that?
Thirdly seeing that we have to honour the bonds as they are state held liability it means that we have to pay the bond holders the increase value of the bonds at maturity. Can we agree on that?
Fourthly do you not think it is grossly misleading therefore for a politician to speak Only of the savings on the 26% right off and lower interest rate, but totally refuse to subtract the future interest cost and higher bond value from the front end saving to arrive at a true net cost to the state?
You my friend are falling into the exact trap that the politicians want you to accept as gospel and that is we saved $1billlion dollars on a $500M debt restructuring.
I don’t see the sense of prolonging this point as Walters formula clearly shows the true cost per bond. We all know that the longer a loan is the more interest one pays so what exactly is the point of your rebuttal?
If you are trying to say we had no choice maybe we didn’t. If you are trying to say the process saved a devaluation, you could possibly be right yes. But to attempt to say we should not be put out because the creditors going make ” a little something extra” in the end and that’s fine, just remember we are the bond holders and every single Bajan will have to pull pocket to pay them their “little something” on and above what we are now paying.
If you want to see the true cost of the exercise then use this formula which I have simplified. Although both Walter and Vincent will cuss me for doing it, as I have omitted the formula extensions in my example. Only did it this way so as to keep it simple guys.
So it would be:
A:
Front end saving $
Less WO fees. $
Less other fees. $
———
Total gross saved. $
Now from that we will deduct the following.
B:
Interest cost to 2029. $
Increased bond cost. $
Tail end fees& penalties $
————
total cost of extension. $
NET FINAL OUTCOME = A -B
This is my final attempt to explain this so all those who don’t accept it then please feel free to drink from the Koolaid truck, but ad we say here ” I dun talking bout dese figures.”
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Hal Austin
Chief Executive Officer of the Barbados Tourism Marketing Inc. (BTMI) William ‘Billy’ Griffith is leaving the post.
In a statement released this morning, the Board of Directors of BTMI announced that Griffith, tendered his resignation today, and it would become effective December 31, to give the organisation an opportunity to recruit a new leader and ensure a smooth transition as his contract comes to an end.
Chairman of the BTMI Board, Sunil Chatrani, thanked Griffith for his significant contribution to the organisation since its inception in 2014 and wished him the best in his future endeavours. Chatrani added that the search for a new CEO will commence immediately as the organisation transitions into a public or private sector partnership (PPP).
“I am extremely grateful for the opportunity to have given back to my country by contributing to its most valued sector,” Griffith said upon his departure. “I am also extremely proud of what we have been able to achieve in the past five years. Barbados is a truly unique destination with so much to offer, and it is with pride that we have worked as a team to showcase that to the world.” (Quote)
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Vincent Codrington
We have indeed strained out a gnat and gulped down a camel.
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John A
@ Vincent.
Lord you going now get call anti party and be in the boat with WAlter me and a few others! Don’t mind you conscience would be clear so you in good company.
But the other thing is some here saying they don’t mind if the creditors get ” a little something ” for themselves in the end. But you know if I asked them how much ” the little something” is in dollars, not a man that so genourus with my tax dollars can give me a figure!
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NorthernObserver
@HA
I am surprised someone with your experience is still harping on regulation, rule of law etc etc, and the parallels across several areas are not being connected.
Another thread addresses matters related to 1) Governance 2) Transparency. At times it appears, the interpretation of Governance is whatever the government does, and transparency refers to others being able to see the hidden agenda from light years away.
Yes Clico, and other groups, were required to annually file financial reports. Have you noticed how many governmental bodies have failed to do so? Is this a lack of professionals available to do that work? Or some form of intentional concealment?
And while we focus on public bodies, I will note that from about the same time the NIS ceased reporting (2005), GEL began a dark period in its Governance. Year after year, the Board was bolstered with another senior executive joining. Because Barbados is all about skin tone, this was occasionally welcomed, instead of condoning the obvious governance principles which were being ignored. It took them several years to rectify these glaring errors, and the shareholders paid, for they undertook one of the worst acquisitions in their near century old history, while failing to execute several others.
The NIS? So by 2018 we all know ‘they are issues’. What is done? A current member of the Board, Mr Jordan, is a newly elected MP, he gets the Ministry which is responsible for the NIS. Another current membe, Mr Gooding Edgehill, also a newly elected MP, is made the Chair. And the Government picks, are Mr Carrington, the recently minted Director of Finance, who prior to this was the CEO/GM of the NIS, and Mr Haynes QC, a well known BLP loyalist. Is this how one gets change?
We all knew when Dr.W made an unusual TV appearance, and uttered what he did, he would be fired? Did the Board make this decision? Did it come from a Minister? The same Minister who while he was not a Board member of the NIS, nor on their Investment committee to the best of our knowledge, nor did the NIS as a body fall under his remit, could assure all via various public utterances the NIS would be rolling over its holdings of GoB paper.
The “condition” of which you speak is not specifically Barbadian. It is what happens to humans when they reach a position and the power goes to their head. Magically, they believe they are now somehow beyond all constructs and principles which applied to them before. In simple language, they can do as they please. And you are damn right those below them fear the sack. I am told, it took a revolt within shareholders, to cure the governance issues at GEL. And they had a yearly AGM where the stakeholders could have made a statement, by not electing one of the nominees to the Board. Not a 5 year hiatus between visits to the polls in an attempt to get accountability.
“WE” are the only ones who can cure these ills. And why “we” need to toss our differences, and find a common ground to attack the enemy. That enemy is a total lack of accountability, and the gradual disassembly of all the checks and balances to help ensure that accountability.
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William Skinner
@ Hal
David Ellis asked today : if there was all that great advancement under Billy Griffith why are we letting him go ?
Tourist arrivals increased
Tourist spend increase
New destinations
Awards were won
Why are we letting him go……………..
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Hal Austin
@ Northern Observer,
What is your point? I am calling for the supremacy of the rule of law and due process; it appears as if you are saying that in Barbados there is a culture of corruption, and that is inevitable. Or maybe you think you have discovered something about Barbados that no-one else realises.
I do not agree. Corruption, as you and others, call it, will continue until brave men and women stand up to it. Questions of corporate governance can be dealt with in new company legislation; questions of the crisis at NIS can be dealt with through competency tests; the NIS is not an issue of corruption, apart from keeping square pegs in round holes IT IS INCOMPETENCE, from ministerial level to chairmen to senior staff. Let us start by sorting out the incompetence.
Since May last year we have had a new government yet things continue as they have always done; maybe the idiotic claim of government being a continuum is true.
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WURA-WAR-on-U
“To focus on what was saved and omit the cost of the extension is lunacy even if it does make for good politics.”
exactly..but the genuises with their white hoax are nice and comfy and gloating, taxpayers are paying out millions so they don’t have to strain their tiefing brains….
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NorthernObserver
@HA
Did I ever use the word corruption? That must be in YOUR mind, not mine.
I said across the board there is a vacuum in ACCOUNTABILITY. And a systemic avoidance of any of the checks and balances which lead to accountability.
Is this incompetence? Possibly in some areas. But for example, with financial reporting, we have the requisite brain and person power, so here it isn’t incompetence? For some other reason it is not happening. And it once did.
Is the lack of proper governance, due to incompetence? Possibly, it is a newer concept. But we have a number of local professionals who are trained in this area, and could advise if required. To not seek, or accept such advice, is tantamount to intentional avoidance? Persons in senior positions must know good governance matters?
Transparency is much easier. Also much broader. But the GoB, whether under a B or D admin, loves to sole source contracts for example. Why? Many reasons, one of which avoids accountability. An RFP was issued and the contract duly awarded…now shut up and move on?
So no sir, I said nothing about corruption. And clearly both the legal and regulatory systems, plus others, are essential to the checks and balances which provide accountability.
Agree that it is not incompetence, we have well trained local professionals in the public service – CGA, ACCA, FCA etc etc – many leave and are productive in other jurisdictions. We have nurtured a culture of mediocrity and disregard for holding people accountable. Much of it has to do with being a small society that invites incestuous behaviour and political influence.
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WURA-WAR-on-U
I have been hearing about this for years, but doubt the pretend leaders and their bribers would be interested, it will mean no more paving the roads with inferior quality crap every three years, no more scamming the treasury every three years, no more bribery and corruption with shoddy road work every three years……they certainly would not want to save the taxpayers a dime let alone hundreds of millions of dollars.
“By mixing recycled plastic bottles with chewed up asphalt, the new process repaves a road without adding any new asphalt—and makes it from a material that lasts longer.”
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john2
A
the following is part of what WB said:
“.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”
Let me see if I can break that down to simpler form for you
You are the creditor/s. your business is to take other people (shareholders) money, loan it to me for as much profit as you can get and share that profit between you and the shareholders.
Now you loan me a different amount of money at different times and I agree to pay back at different dates but all my debt to you (p+I) would be pay back in full in five years.
At the end of year two my remaining debt (P + I) to you is $20 which I would have had to pay in the remaining three years.
I realize I cannot pay you as agreed over the next three years and ask you to reduce my payments and stretch the payments time out to by three more years.
As an investor would you still be expecting me to only pay you $20 in the six years?? HELL NO!
If I had paid you the $20 I had owed you on time you could have reinvested it for the six years and probably make another $2 in profit for you and your share holders. (so in six years you would now have $22 instead of $20)
Now translate that $2 to equate to WB $136.7M or my “little extra” for the creditors
Now would you say the creditors doesn’t deserve this money?
I cannot give you a figure for how much extra the creditors should get. that is something the two parties at the table would have had to negotiate. But for allowing us to keep their money over a longer period of time and then still making the same sum that was owed to them (in the shorter period) the creditor would only be robbing themselves – of the extra profit they could have gained if they were allowed to reinvest their money for over the extended period.
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john2
Politicians will do what politician do.
Would you think that Worrell is dishonest etc if he give a report that the agreement allow the government to save a billion dollars and save 26% etc?
I don’t agree that the restructuring saved us a billion or 500 000. or $5.
I look at it this way – if we had used up our FX and pay our debt as it was due and then did not have any to pay for good and services, where would we be? or if we had devalued our dollar (these are other options)
How many more would have been laid off?
How much higher would we be paying for our good/food
How much more would we be paying in taxes (direct and indirect).
How much would our economy further contracted? if it had contracted by a further 1% how much would that be in dollars.
The above are what I look at as saving (even before the restructure agreement was completed).
Unlike you or the politicians I cannot put a $ value to that(savings).
YES, I am aware that it is us the tax payers who have to pay the extra money. You have to pay for what you use.
Like it or not the investor want what is due to them and is not about to give us any free ride/money.at their expense.
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john2
A.
Why do you try putting yourself and others with WB? Are you trying to pull yourself along on his coat tail?
You always claim to leave out this party thing yet you seem to be the first one who usually jump on party this and party that.
You want to pretend now that Walter(because of his good contribution) will be called “anti party” (BLP) like other will call you. With the amount of congratulations and well wishes and agreements WB extended towards the government you would have to be really delusional to think that he can be considered “anti party” like you.
Go back and read his comment of praise for the government and stop fooling yourself and trying to pull along on his coat tail. He is much to cleaver for you. WAKE UP!
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john2
David
I wrote a piece on what I consider to be our savings but it seem to have gotten lost. If you find it please submit it. if not I may have to redo it if I have the time tomorrow
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NorthernObserver
@Blogmaster
Every society has a size. There will be many behaviours, and influence of many types will be peddled and sought. This is life; everywhere.
Accountability is a top-down thing, because you cannot demonstrate success if your down isn’t performing. Yet you can muddy the waters, by avoiding the systems which are there to measure. Many provide the opportunity to explain results. But if one simply refuses to comply, then we all lose.
Agree with your concern about the talking point about a billion in savings. It is not dissimilar to when the government boasted the speed an IMF BERT was negotiated. There is no value to such a position except to gain political advantage in the eyes of the ignorant. It detracts from the work of government.
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Hal Austin
@ Northern Observer,
This is not a discussion between the two of us, it is a blog and corruption is the allegation – today and on everything said about Clico. It is part of the narrative. I have said, and continue to say, that incompetence (including lack of experience) is a bigger problem in Barbados than so-called corruption, and this includes the Barbadianisation of every position. A degree or paper qualification has nothing to do with competence.
Accountability is systemic, part of good regulation, which sets the parameters. All the questions you ask are due to competence. Good financial reporting is an outcome from good regulations, from the reporting requirements (IFRS to GAAP, to auditing), good governance and accountability are outcomes from good company law, including modernising the outdated model of the company, a legal structure from the 1920s; if directors had to be held individually accountable for the bad management of the company instead of hiding behind the nonsense of separating corporate from individual, they will act more responsibly. Directors should not be able to walk away from failed companies without paying a penalty. That is ACCOUNTABILTY.
About procurement, all that is needed is open competition and transparency; that can be written in to law. The same for public sector appointments. It is not rocket science. I say again, you might not have mentioned corruption, and | agree, but plse define intentional avoidance.
In Barbados we are obsessed with degrees, diplomas, and other bits of paper; we do have the brain power and person power, but lack COMPETENCE, which comes through experience. This is what Junior has been saying on another blog about Malcolm Gladwell’s theory of 10000 of experience. Competence comes from practice, practice, practice, not talking, talking, talking, or getting useless pieces of paper.
I had a Guyanese friend, sadly now dead, who had a good economics degree from University College, and he worked on London Transport as a ticket inspector. A decent job, but one for which he was over qualified. Competence comes from post-qualification experience, trial and error.
As a nation we need to be humble and accept we are not as competent at managing a modern corporation of economy as we think we are. Just look at the mess we are in. We brought in White Oaks because we thought they had the competence. Just go in to any of our banks and look at the long queues and tell me if that is the result of competence. Look at the long lines queuing to renew their driving licenses and tell me if that is competence; look at the mess at the QEH and tell me if that is competence; look at the 70 murder trials waiting to be heard, is that competence? The list is endless.
Let me end here: plse do an audit of all those aged under 30 (in other words who had their education under the 14 years of Arthur, and ten years of Thompson/Stuart) and tell me if the outcomes are good enough to propel us in to the modern world? All we got for our money is an army of lawyers, and ask BU what they think about local lawyers.
Barbados is a failed state and the failure is caused by lack of competence compounded by a failure to accept our shortcomings.
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Mariposa
When Ryan Straughan opened mouth and tried selling that political pitch of a billion in savings
My first response was to say to him that i needed a refund of taxes paid for social services
Govt promised that monies saved would put money in the pockets of people
Ryan Straughan and this govt take bajans for fools
When he speaks of savings most barbadians think of value which would be of service to them
However this govt have been good on selling political propaganda for ten years so not unexpectedly Ryan Straughan would deliberatatley massaged the mentality of bajans to serve govt purposes
A billion dollars is indeed a big savings in theory but the practicality of this savings is yet to be delivered in the form of saving people from more dracanion measures food prices and severe taxes
The practicality in the savings as you referred to it is that the former government you supported left a small pot of foreign reserves to comfortably honour commitments in the short term.
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Mariposa
A small pot which has grown bigger and executed by more borrowing more taxes and not to mention belly hurting austerity measures
David pray please tell where are the savings and most importantly when will this hell of endless suffering end
Time will tell. The country was left in a hard place by guess who? There was no easy solution after years of mismanagement and an electorate satisfied with ceding its civic responsibility. Hopefully the third (alternative) movement gains traction in the next three years.
Understand the point being made. The nuance of a small society. We are at the point to trigger a wake up call, let us see if the message is received by the people.
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WURA-WAR-on-U
No one beleives the billion in savings shite…FOOD IS TOO EXPENSIVE, the cost of living is too expensive…the vulnerable ARE STARVING…so a billion dollars in savings sitting in the treasury with the greedy, covetous ass ministers watching it and waiting for their bribers and an opportunity to TIEF… is no help to anyone.
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Mariposa
Time has already been telling the hardships barbadians are facing with having a govt bound and determined with a deliberate movement of repaying debt by any means necessary
The wheels of propaganda will continue to spin
Time will move on and the changes will come but not those govt promised
Pain has a way of opening the eyes of people and seeking resolution by any means necessary
So David as you continue to be a reminder of past govt ten years in office dont forget the future is now and can be resilient and also resolute in doing things its way
Present govt has now placed barbados on a path of severe hardship which cannot be reversed and looking back also would not formulate a remdy and a path guided by govt promises of better
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WURA-WAR-on-U
A billion dollars saved through STARVING THE PEOPLE by them and white hoax…vs a BILLION DOLLARS she and DLP allowed their BRIBER friends to TIEF FROM THE PEOPLE and no one goes to prison.
…..no one is impressed so they can take their lying sound bites and shove it.
Barbadians have been living high on the hog, a lifestyle it does not earn enough to support, add mismanagement and a lack of awareness about civic responsibility and the people will get what they deserve. If you were spending and mismanaging in your household what would happen eventually?
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John A
@ David
Well said there but we took the mismanagement even further.
When we couldn’t pay the Light bill we borrowed $200 from Joe till next month. When next month came we didn’t have Joe’s money so we went down the gap and borrowed $400 from Mary to pay Joe his and next month light bill. We did the same when the water bill came in etc.
All this didn’t stop us from eating at Chefette every day though nor putting gas in the big ride we bought on credit too. Then when we couldn’t pay the big ride payments we ended up at the local loan shark begging for a loan.
Have we learnt anything from all of this, maybe or then again maybe not.
It gets worse. Even as we are in the predicament we find ourselves many want to support this unsustainable consumption expenditure. We are addicted.
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John A
@ David.
I see it every day my friend. Have you ever noticed when you go in some stores the cash price is printed somewhere in small print, but the monthly HP price is bold and in red?
The problem also comes because our leaders have never really levelled with us as to the severity of our problem. Therefore as a people we carry on as before. We continue to measure our progress by how big our TVs are instead of by which of us owes the least.
We have spend billions educating our people annually, what are you saying? They lack the ability to logically sum a situation and make smart decisions?
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John A
@ david.
No it has nothing to do with being well educated, it is in my view more a case of one’s personal values and how the North American consumption trends have infiltrated our small island via the same big TV’S.
I read recently of a minimalist movement im the USA that is however pushing back and is in fact measuring wealth based on freedom of debt and downsizing. Hopefully some of us here will see the wisdom and do the same. Their claim is a man living in a $100,000 cottage debt free is richer than the man in the million dollar house with a $900,000 mortgage and 2 car loans.
It really I guess boils down to what we value most. The material trappings of life and the ability to pose with them, or freedom from debt, a simpler life and the ability to travel and enjoy life.
If you define being educated as being ‘enlightened’ and not just receiving an instruction how something works, then an enlightened person should have the capacity to calibrate personal values to protect the collective.
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TheOGazerts
Good morning Barbados. A happy and prosperous day to all of Barbados
Weekend is here and I can catch up on all of these comments.
General comment for all topics: Some should assume that they may be interested in politics at some time in the future and do not leave a trail that they may regret: (later)
One thing is obvious, we have some good brains in Barbados
Have a great day John A
Have a great day Barbados.
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John A
@theogazerts
Same to you enjoy your day.
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John A
@ David.
Agree with you 100 percent but they are these thing called greed, ego and insecurity that have a way of getting in the way of rational thought. In the need some have to climb the social ladder all logic is lost in pursuit of acceptance and recognition.
I mean when one thinks logically do you really need $400K SUV to dodge the potholes in our roads? I find my 5 year old Toyota does the job admirably.
Point taken but personal choices can be greatly influenced by quality leadership. Should quality leaders emerge from an educated society?
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John A
@ David.
Yes they should and they should also lead by example. So why Is it then that these same leaders feel the need to drive around the same SUVS?
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Mariposa
One also would expect as govt hails a billion dollar savings on paper that the people would benefit from that saving
However the reality of that billion cannot be transferred to an automatic financial savings for the people because govts did not the wherewithal at any time to pay that money
In reality that money can be described as money that never existed in fiscal terms
It seems you are limited to reacting only to political rhetoric. Have you been following the exchanges? The benefit to the country is rescheduling debt payment schedule to give wiggle room until it can earn, we hope. If the country benefits the people benefit, capiche?
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Mariposa
What is there to follow .did govt need a million dollar advisor to present barbadians interest statingovt inability to pay recurring interst on debt
Did not govt have all this information on file
However in fiscal terms and planning i await to see this wiggle room and how it would be centred against a backdrop of growth
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Miller
@ John A October 26, 2019 9:58 AM
“Yes they should and they should also lead by example. So why Is it then that these same leaders feel the need to drive around the same SUVS?”
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Be careful here, now “John A”! You might soon find yourself classified as ‘persona non grata’ in the dictatorial books of the likes of “Enuff” & party of political yard-birds.
You are showing up the hypocrisy of these so-called leaders as they fly around in kerosene-driven aluminum tubes while shouting ‘No’ to climate change and envying the economics benefits from the exploitation of the same climate-change causing fossil fuels about to descend like a curse on poor Guyana.
How can Barbados have a balance of payments financing problem big enough to end up in the hands of the IMF loan-shark while telling its foreign bondholders to bugger off until we can pay you and using the same ‘saved’ forex to import gas-guzzling SUVs and stale water in plastic bottles?
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William Skinner
@ John A
What do you really expect on Tuesday? Having reached an agreement with the creditors, all the government has to do is explain and defend its position. You should expect the politically expedient response that the payments to White Oaks were justified in that the country saved a billion dollars.
Quite frankly the government is politically outfront in what is really a propaganda war. Already Solutions Barbados and the Opposition leader have signed on to the government’s position. The Democratic Labour Party has welcomed the signing of the agreement as well.
It is therefore mere wishing to expect that some bombshell or embarrassment will emerge on Tuesday.
I score one for the government on this whole White Oaks debate.
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