The Central Bank of Barbados economic review of the economy was delivered today by Governor Cleviston Haynes.
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The quarterly report also deals with the current situation. Like every chattering in the Caribbean, this report is characterized by a lot of whitewashing and distraction. The figures presented in the report are far too optimistic if we expect a second pandemic wave in the autumn. We should assume that by October 2021 at the earliest we will have 50 percent of regular tourism again and by the middle of the decade at the earliest we will be back to the 2018/19 situation.
As I said, the stimulus package will only slightly mitigate the recession and massively increase our debt. As always. The fundamental problem remains that the BBD is overvalued and the civil service is far too large and too expensive.
In detail:
The stimulus package dispenses the usual alms to the native masses. However, the package does not tell us what will happen to the unemployed when unemployment benefits expire.
Excessive taxes for tourists are maintained, so that our competitiveness in the tourism industry suffers permanently.
New industries are not developed, the reference to agriculture has only a folkloric function.
The package also includes many gifts to our contractors, the real masters of the island.
Some announcements like the Hyatt have only fictional value at all. We should remember that for 10 years the Freundel admin announced numerous construction projects. Even today, the ruins of the Four Season are rotting and desecrating the beach.
To sum up: the package contains the usual ingredients for economic disaster. With this programme, the government is ensuring that we will soon switch to currency devaluation. I therefore FULLY support this programme.
What decline what, more like a tornado.
https://www.nationnews.com/nationnews/news/245279/imf-caribbean-economy-shrinking-62-2020-pandemic
What do you expect?
It would be totally dishonest to blame our Most Honourable Prime Minister for this disaster.
She is not responsible for Corona, nor for Chris Sinckler as MoF, nor for the idleness of the Aborigines or the low productivity.
Even the best leader in the world can only work with the material she finds. The Prime Minister’s hands are tied in a reform of the civil service. Senator Caswell, the unions, the DLP and all the other sinister forces that want to destroy Barbados will prevent any reduction in public service pay or layoffs.
Our leader is caring and tries, against the will of the destructive opposition, to make the best of the situation for the people.
@ TronApril 30, 2020 1:55 PM
“The quarterly report also deals with the current situation. Like every chattering in the Caribbean, this report is characterized by a lot of whitewashing and distraction. The figures presented in the report are far too optimistic if we expect a second pandemic wave in the autumn. We should assume that by October 2021 at the earliest we will have 50 percent of regular tourism again and by the middle of the decade at the earliest we will be back to the 2018/19 situation.”
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
It seems the present creature of the MoF has learnt rather well from his former master of numerical manipulation to satisfy a political agenda set by the political principal at the High College of statistical gerrymandering.
What is a bit puzzling is how much of this massive decline in GDP occurred prior to the Lockdown or the closing of the ports as a result of Covid.
Should never have banned the sale of alcohol or the night races on the Garrison; the two activities that grease the economic wheels to make them spin in both the ghetto and heights.
Even the people in the underground train (like Adonijah) couldn’t hold or muster a smoke of the imported weed in keeping with their sacrament.
Not even the regular visits to the betting shops (in stark breach of the lockdown curfew) to play the numbers game by way of the daily Double Draws could make up for such a massive fall in revenues from those sin taxes.
Some of them are getting delusional and need to stare REALITY in the face…they are still on this tourism kick instead of making sure the PEOPLE have access to the funding that will make them SELF-RELIABT instead of being on the dependency kick to nowhere…
“While most cruise ship passengers have now made it back to land, another crisis has been growing – with no safe haven in sight.
Around the world, more than 100,000 crew workers are still trapped on cruise ships, at least 50 of which have Covid-19 infections, a Guardian investigation has found. They are shut out of ports and banned from air travel that would allow them to return to their homes.
Many of these crew are quarantined in tiny cabins, and some have had their pay cut off. They have in effect become a nation of floating castaways, marooned on boats from the Galapagos Islands to Dubai port.
Many of the crew have only minimal communication with the outside world, making their situations hard to scrutinise. But at least 17 cruise ship workers are confirmed to have died from suspected Covid-19, and dozens more have had to be evacuated from ships and taken to hospital, the Guardian found.
“We all have family, we all want to go home,” said one crew member who has been isolating in his cabin onboard the MSC Seaview off South America for nearly a month, but is no longer being paid.”
IMF Reaches Staff Level Agreement on the Third Review of Barbados’ Economic Program under the Extended Fund Facility
April 30, 2020
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a review mission. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
- A staff-level agreement was reached between IMF staff and the Barbadian authorities on the third review of Barbados’ Extended Fund Facility-supported economic reform program.
- Since May 2018, international reserves have increased from a low of US$220 million to more than US$850 million at end-April 2020.
- Supported by an augmentation of the Extended Fund Facility of about US$90 million, the Government has lowered its primary fiscal surplus target to 1 percent of GDP for FY2020/21 to fight the coronavirus pandemic.
Washington, DC – At the request of the Government of Barbados, an International Monetary Fund (IMF) team led by Bert van Selm conducted a mission via videoconferencing during April 27-30, 2020 to discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF). To summarize the mission’s findings, Mr. van Selm made the following statement:
“The ongoing global coronavirus pandemic poses a major challenge for the economy, which is heavily dependent on tourism. An economic contraction of more than 10 percent is projected for 2020. The shock will have a large impact on the fiscal accounts and the balance of payments. The Government aims to accommodate the loss of government revenues and additional emergency outlays on health facilities and medical supplies, as well as provide income support to the most vulnerable groups in society.
“In response to the pandemic, the Government of Barbados is now targeting a primary surplus of 1 percent of GDP for FY2020/21 (compared to 6 percent previously envisaged). Staff supports this easing of the fiscal stance and, subject to approval by the IMF Executive Board, proposes an augmentation of the extended facility in the amount of SDR66 million (about US$90 million).
“Following productive discussions, the IMF team and the Barbadian authorities reached staff-level agreement on the completion of the third review under the EFF arrangement. The agreement is subject to approval by the IMF Executive Board, which is expected to consider the review in June. Upon completion of the review, SDR101 million (about US$140 million) will be made available to Barbados, bringing total disbursement under the program to SDR 206 million.
“Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program. International reserves, which reached a low of US$220 million (5-6 weeks of import coverage) at end-May 2018, have sharply increased since then, to more than US$850 million. The completion of the debt restructuring in December 2019 and meeting the primary surplus target of 6 percent of GDP for FY2019/20 have been very helpful in reducing economic uncertainty and reducing public debt.
“All program criteria for end-March 2020 under the EFF have been met. The program target for Net International Reserves was met by a wide margin, as was the target for the Central Bank of Barbados’ Net Domestic Assets (NDA).
“The team would like to thank the authorities and the technical team for their openness and candid discussions.”
IMF Communications Department
MEDIA RELATIONS
PRESS OFFICER: Randa Elnagar
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Nothing surprising in these two quarterly reports. Targets are still overly ambitious and probably are not addressing the substantial issues.
@Vincent
The targets will have to be revised because of COVID 19?
And what are the 2 major suggestions worth pursuing in the governor’s opinion today? Agriculture and alternative energy. Thank God he said so cause I been begging that they be put on the front burner for well over a year now.
@ David BU
They will be revised because they are unachievable with or without COVID – 19. COVID – 19 is an opportunity to revise. COVID also provides an opportunity to build some flexibility into the new economic structure. What we cannot do is build an economy with immunity from external shocks.
@ Vincent
Economic activity fell by 3% ending March 2020 said the governor. Now up to March 15th it was business as usual. So am I to believe that the last 2 weeks in March, which is when the Covid issue started to affect us and the cruise industry was closed, that we lost 3% of the last year’s total ecomomic activity in just the last 14 days of March 2020?
Truth is even if we didn’t have Covid, we could not of seen true economic growth in the year ending March 30th 2020 based on the figures shared today.
Going forward it will be truly tough and while I heard of all of the millions that will be put into the economy for growth, I am yet to hear how government plans to reduce their expenses to balance the $400M in lost revenue the MOF spoke about.
John A April 30, 2020 8:21 PM
“And what are the 2 major suggestions worth pursuing in the governor’s opinion today? Agriculture and alternative energy. Thank God he said so cause I been begging that they be put on the front burner for well over a year now.”
I told you a week or so ago, to pull up a front seat and watch the magicians. There is a still a reluctance to be bold and innovative with agriculture. We have been playing around with the energy thing for nearly twenty five years.
BTW, there is a reason why PLT’s views are being read throughout the island. People are forwarding his ideas because they seek a new path.
Once more, I invite you to pull up a front seat and watch the same old political nonsense return.
I read recently on BU that there maybe a second wave of the COVID-19 and our tourism numbers would increase because people may decide to come and hang out in Bim.So, within a second wave of the virus we would benefit automatically. That is the kind of thinking we have. Magicians. I actually fooled myself that we will have decided to really come with new creative bold ideas but sadly , we seem to like warmed over soup. Enjoy the show!
Mia could boost agriculture by sending 10,000 public servants to the plantation. COW and Baloney would certainly be happy about forced laborers 🙂
@John A
Are you sure the millions in stimulus is to generate growth?
@JohnA
“expenses to balance the $400M in lost revenue”
I think ‘to partially offset’ is more realistic. The projections will be massaged frequently, this being a very ‘fluid’ situation.
@ David April 30, 2020 11:39 PM
The so-called stimulus will minimally dampen the deep recession, but no more. It will take 5-10 years until we reach the 2019 level again. But since 2019 itself is hardly above 2008, we will have lost 20 years. In the meantime, many developing countries have passed us by, especially in Africa.
@ Mr Vincent Codrington
When you and Wily Coyote speak people listen.
You said and de ole man quotes
“… Vincent Codrington April 30, 2020 7:24 PM
Nothing surprising in these two quarterly reports.
Targets are still overly ambitious and probably are not addressing the substantial issues…”
Would you care to comment about the substantial issues? Just for ole menses like me to absorb these big reports and ting.
By, the way, There is a suspicious thing that is resurfacing on the form of Pandemic Bonds.
De ole man sort of slow but I was wondering if these are the same thing that we had to deal with in 2018?
And if not what is the difference?
HomeNewsGovt may have…
Govt may have to print money after all
SHAWN CUMBERBATCH, shawncumberbatch@nationnews.com
Added 30 April 2020
Print
central-bank-review-april-2020
Central Bank Governor Cleviston Haynes delivering his report on the first quarter performance of the Barbados economy.
Faced with an expected revenue loss of about $500 million, Government is banking on receiving a $600 million injection from multilateral financiers.
But Central Bank Governor Cleviston Haynes, who outlined the plan yesterday, said given the likely reduced tax intake, the Mia Amor Mottley administration might have to reverse its policy of not relying on his institution for funding.
He made the suggestion while noting that the Central Bank, which saw its capital reduced by $1.6 billion in the domestic debt exchange, had delayed its recapitalisation plan in light of the focus on the coronavirus (COVID-19).
Haynes was speaking online during the bank’s first quarter economic review. (
Did Mia say that the NIS would soon be seeing a shortage of funds in paying out money to the unemployed
Here is what she said about the NIS Fund. It is recorded, no need to speculate or misinterpret.
The NIS has more than sufficient assets to meet these demands, but they are not liquid or in the right divisions. The Government will support the NIS whether through existing funds being held at the Central Bank from loans we have received or by purchasing the bonds that the NIS holds to the tune of $250m. In essence, we will prepay the NIS early and Finance it through the issuance of a Pandemic Solidarity Bond.
Govt getting US$140m in funding from IMF
GOVERNMENT IS IN LINE to receive US$140 million in funding from the International Monetary Fund next month.
The international financial institution’s Barbados mission chief Bert van Selm also said yesterday that subject to Executive Board approval, Barbados’ Extended Fund Facility (EFF) would be expanded by US$90 million.
These announcements were made after an IMF team led by van Selm conducted a mission via videoconferencing between April 27 and 30.
The talks were to “discuss implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the EFF”.
“Following productive discussions, the IMF team and the Barbadian authorities reached staff-level agreement on the completion of the third review under the EFF arrangement,” van Selm said.
IMF approval
“The agreement is subject to approval by the IMF
Executive Board, which is expected to consider the review in June. Upon completion of the review, about US$140 million will be made available to Barbados.”
News of the additional funding came as he noted that the coronavirus pandemic posed a major challenge for the economy, which was heavily dependent on tourism.
“An economic contraction of more than ten per cent is projected for 2020. The shock will have a large impact on the fiscal accounts and the balance of payments,” he said.
“The Government aims to accommodate the loss of Government revenues and additional emergency outlays on health facilities and medical supplies, as well as provide income support to the most vulnerable groups in society.”
The IMF representative also said that in response to the pandemic, Government “is now targeting a primary surplus of one per cent of GDP for financial year 2020/21 (compared to six per cent previously envisaged”.
Good progress
He reported that the IMF’s staff supported “this easing of the fiscal stance”, adding that Barbados continued to make good progress in implementing its comprehensive economic reform programme.
“International reserves, which reached a low of US$220 million (five to six weeks of import coverage) at end of May 2018, have sharply increased since then, to more than US$850 million,” said van Selm.
“The completion of the debt restructuring in December 2019 and meeting the primary surplus target of six per cent of GDP for financial year 2019/20 have been very helpful in reducing economic uncertainty and reducing public debt.”
He also said by the end of March, the criteria Government needed to meet under the EFF was met. (SC)
@ Piece
Is the pandemic bonds the same as a government bond or will it be differently structured? What will the money be used for? Plse tell me if you know, who are the members of the CoVid economic council, apart from Owen Arthur and Chris Sinckler? And, is t he president back at work fulltime?
The blohmaster finds this story interesting. Many years ago the Barbados Public Workers credit union promised members a buyers club was to be launched. More than a decade later what are we hearing?
Credit unions to consider buyers’ club
BARBADOS’ CREDIT UNIONS may be preparing something special as the COVID-19 pandemic continues to attack people’s pockets.
In light of the lockdown, some Barbadians have found themselves in dire straits. This has led to former parliamentarian and community activist Hamilton Lashley calling on credit unions to step up, suggesting they form a buyers’ club.
President of Barbados Co-operative & Credit Union League Ltd) Hally Haynes told the DAILY NATION such a suggestion was not unheard of and the board met recently to consider the matter.
“We’ve been known to have buying clubs before but that is something which we would have to discuss as a movement. We know we have to do much more,” he said.
Recently, during Voice Of Barbados’
call-in programme Down To Brass Tacks, businessman Andrew Bynoe said financial institutions were not doing enough and would have to take a “hair cut”. He added that the business environment would forever be changed and the current level of debt would be unsustainable.
In a statement last month, Haynes said they were already speaking with Government and other stakeholders on the issue of “how credit unions, like other financial institutions, can assist members to navigate this period of uncertainty”.
In a recent interview, Lashley said credit unions had a major part to play, now more than ever.
“Most credit union members are among the most vulnerable in society. While I realise credit unions do not have an endless supply of money, it has to be about creating policy to protect those vulnerable people. My suggestion is a buying club within credit unions,” he said.
Lashley said while he was heartened by the moratorium offered by financial agencies, more had to be done.
He also called for churches, service clubs and the Barbados Association of Retired Persons to join together in a national social protection effort.
“A cooperative approach now is important, rather than talking about equitable distribution. It will not be business as usual after COVID,” he said.
The mechanics of how the bonds will work is not public knowledge. She floated the idea in her address. Here is what she stated.
What do I mean specifically? If we isolate those who are earning $3000 a month and below, how best can the rest of us agree to take a relatively small portion of our salaries in pandemic solidarity bonds to be repaid in 4 years or sooner to allow us to support this extraordinary effort. I am not going to go further on this not but I want every Barbadian to sleep on this. My brothers and sisters, we have to agree that we must work together to guarantee food on the table of every single Barbadian household.
Here is the Jobs and Investment Council
Jobs & Investment Council Set Up & Working
by Sharon Austin | Apr 30, 2020 | Top StoriesFormer Prime Minister, Professor Owen Arthur, chairs the Industrial Transformation group of the Jobs and Investment Council, which is looking at ‘How to create 20,000 jobs in 18 to 24 months.’ (BGIS Library)The Jobs and Investment Council has been established, and the members of its eight committees are hard at work undertaking their mandate of preparing a guide for the survival and transformation of Barbados.
A wide cross section of persons has been called upon to serve on the committees, including Barbadians in the diaspora.
Former Prime Minister, Professor Owen Arthur, chairs the Industrial Transformation group, which is looking at How to create 20,000 jobs in 18 to 24 months; while Professor The Most Honorable Eudine Barriteau chairs the Services and the Creative Economy one, examining How can we train everyone to world class standards in the delivery of goods and services?
Dereck Foster is chairing the Retail and Commerce committee, which will undertake How can we guarantee food on everyone’s table? and Senator John Rogers chairs that tasked with Securing Food for Every Table.
Dodridge Miller chairs the Finance and Insurance group, which will address How can we fuel investment for the next 18 to 24 months? while Tony Hoyos is chairing the Housing and Infrastructure committee, which is looking at What facility can be used to leverage the capital in the Housing Credit Fund to provide low-income houses?
The Digital Transformation committee, which is chaired by Dr. Annalee Babb, will examine How can we use technology and innovation to solve common everyday problems for Caribbean people? Former Minister of Finance, Christopher Sinckler, will chair the Trade and Logistics group.
The Job and Investment Council met last week, and according to Prime Minister Mia Amor Mottley, the members are expected to report back to Government within two to four weeks, depending on their areas of concentration.
https://gisbarbados.gov.bb/blog/jobs-investment-council-set-up-working/
@ Blogmaster could you translate his for a dullard
The NIS has more than sufficient assets to meet these demands, but they are not liquid or in the right divisions. The Government will support the NIS whether through existing funds being held at the Central Bank from loans we have received or by purchasing the bonds that the NIS holds to the tune of $250m. In essence, we will prepay the NIS early and Finance it through the issuance of a Pandemic Solidarity Bond.
Sounds like Mariposa is on to something.
@Dullard
What could it be except that the NIS is holding too much government securities. The NIS has been successive government’s ATM especially abused under the last administration. Ironic that former minister of finance Sinckler is a member of the team charged with coming up with a plan to transform how we do business.
The government will have to come up with a plan to facilitate early redemption of government paper or some alternative approach to inject CASH in the NIS f7nd.
@John A.
“Agriculture and alternative energy. ” ….. agree with you but we’ve been hearing this promise from successive governments, for years……….. its repeated to sooth the ears of those in favour of this approach but nothing significant is ever done.
Our oil based automotive, energy producing & polluting sectors currently provide too much taxes and jobs to our economy thus our governments don’t want to upset the apple-cart by granting 100% exemptions to the AE sector.
Its a no-brainer … we have the Sun, almost 300 days per year, to harness and I would like to put solar panels on my roof but cannot afford it with the current situation.
Let us hope they ‘mean business’, this time!
Exactly! Govt paper that, when marked to market, aren’t enough (by a long way) to fund the liabilities. Therefore Mariposa’s earlier comment is not that far off the mark, no?
@Dullard
Check BU archives, how many blogs have been written about the NIS fund? The point in this case is that the government should be able to find the cash to service short term claims/top up unemployment fund. We have always agreed on the blog the NIS fund needed to be protected. The government is last resort for funding anyway , we will see how it plays out. Unlike the US that can turn on the printing press and dump trillions in the economy, can we do similar? The challenge of managing a small open economy.
>
“Former Prime Minister, Professor Owen Arthur, chairs the Industrial Transformation group of the Jobs and Investment Council, which is looking at ‘How to create 20,000 jobs in 18 to 24 months.”
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Is the immediate goal to create 20,000 (new) jobs or to first recoup the 20,000 or so jobs lost as a result of Covid?
The only new jobs capable of being ‘created’ within the next 2 years are those associated with agriculture, renewable energy and ecological / environmental pursuits like replacing the importation of stale water in plastic bottles with locally sourced still water, even if it’s ‘purely’ Bowmanstan, specially treated.
These are not areas socio-economic development which reflect the forte, experience or commitment of the Chair.
Under whose portfolio would the immediate rehabilitation of the former CLICO plantation lands and that of the 40 acres ‘gifted’ as a form of reparations by the Edghill family to the UWI fall?
@Miller
The importation of water one assumes is associated with the tourist industry.
Then it became fashionable for locals to buy bottled water like many other products.
The issue is not locals liking for bottled water per se but the ‘taste’ we have developed as a people because of our adoption of foreign is better. The messaging via the Internet, TV, travel, studying overseas etc.
@ Northern.
Yes the new word for when what you doing don’t work and you got to change it is “fluid.”
So plan now is for central government to buy back the worthless government bonds that Sinkyuh sold the NIS, so as to give the NIS cash to pay the severance etc with. Thus the worthless government paper now will come home to roost at central government.
End result being the bond that Sinks sold say for $100M that was worthless, will now be bought for $100M from the NIS using tax payers money and then shredded, as government would have purchased their debt back. Wunna understand when some of us quarrel real bad about this worthless paper being held by the NIS being a dangerous move, what was meant now. What has now happened is that when you hear government talk about the NIS being sound, what they are not telling you is that roughly half of the so called assets of the NIS are made up of Sinkyuhs worthless bonds. Everytime now that the NIS needs cash now, we the taxpayer will pull our pocket and buy back worthless bonds from them, hence reducing the worthless paper held by the NIS while at the same time refinancing them with cash from central government. This is tax payers money yet again being used to fix the folly of Sinkyuh. Then we reward the same clown by making him an advisor on a task force to revitalise the economy. I deading here with laughter.
Lord not even David Copperfield, one of the worlds best magicians could of make $100M disappear so on his stage in Vegas. Lol
@ David
See John A’s comment.
@ John A
The whole thing is just a mess.On top of the useless paper remember as well the “investments” in non-performing real estate.
@ David May 1, 2020 7:56 AM
So whose ‘borrowed’ forex is used to buy the imported stale water?
We can understand why the tourists would want to feel comfortable seeing their Evian or Buxton stills on their tables because of fear of Montezuma’s revenge.
But how can the locals justify this ‘addicted’ taste for foreign water when they like to boast about having the cleanest clear crystal water piped to every household compared to the rest of the Caribbean while trying to maintain a life of Riley out of the IMF loan-shark pockets?
Where is the foreign money coming from to pay for the imported water while the BWA underground mains turn into sieves? The IMF or the CDB?
It’s time to put a stop to this wastage, both scarce (borrowed) forex and the fast becoming precious local potable water.
@ Dullard
Yes that is also a major issue as not only is it non performing but booked at a grossly overstated values, based on the massive cost overruns that occurred at places like the Grotto.
So we have real estate assets based on massive cost overruns that if valued at market value would drag down the funds true value immensely, but then we have rental incomes based on market conditions trying to give us a return on the same grossly overpriced asset.
God help the day the NIS fund is every valued on true market value of their hard assets and the saleable price on the open market of their garbage paper!
@Dullard
What did the blogmaster post that conflicts with John A?
@Miller
We are followers. It is no different across the Caribbean. We have become slaves to the tourism industry.
@ John A May 1, 2020 8:06 AM
“Everytime now that the NIS needs cash now, we the taxpayer will pull our pocket and buy back worthless bonds from them, hence reducing the worthless paper held by the NIS while at the same time refinancing them with cash from central government. This is tax payers money yet again being used to fix the folly of Sinkyuh.”
++++++++++++++++++++++++++++++++++++++++++++++++
Don’t be surprised if such a dire situation arises where the government has to commandeer the savings sitting idle in low interest bearing cash deposits accounts especially in the credit unions to meet the payroll of the public sector workers especially those in the so-called essential services.
This might be done under the guise of doing it for the national good and the salvation of Barbados. After all, Barbados now finds itself trapped in a war with an unseen and unforeseen enemy.
@ David May 1, 2020 9:06 AM
So you must agree now with the ex-blogger the wizard Bush Tea that Tourism in its present form is merely high-class prostitution on the national level instead of watching it run at night on the Garrison?
@ David
It is my view that a well planned and implemented agricultural and alternative energy project, will easily replace the loss of a sizeable amount of our tourism generated FX.
IF you can cut food imports and fuel imports by say 30%, that right there would replace the shortfall in FX from less tourism activity. Most importantly though, is the fact that both of the above are 100% home based activities not subject to external shock.
As I said before I am not saying forget tourism, instead let us take say 20% of what we invest in tourism and put it in the other 2 sectors as a start.
All Wily can see is that Barbados present “POOR” financial position has now moved into DEEP BANKRUPTY TERRITORY and can no longer meet it’s daily operational funding requirements, ie NIS, employment insurance welfare etc. Prime Minister is now floundering and suggesting things such as a PANDAMIC BONDS which are totally unrealistic, who’s going to purchase any type of bond being promoted by a Sovergien FAILURE government. Government cannot rely on its usual purchasers, local populace has NO MONEY and last bond fiasco still remembered.
Not a sure thing that IMF EXECUTIVE BOARD is going to approve new money. Remember IMF is significantly funded by USA Trump whose on a reduce funding to these organizations that are a drain on US funds.
The term ROCK AND A HARD PLACE is now becoming a reality and DEVALUATION is now becoming the only thing that can bring the country back to REALITY.
@John A and Miller
For 10 marks are you able to align your view with what the Governor and the PM stated in their recent addresses to the nation?
#askingforafriend
@Miller
Yes you are right the NIS has a value on what would best be described as a ponzi base of worthless paper. The problem they face now is that they need liquid cash and fast. So if let’s say the NIS had a genuine asset base, they could sell some assets and generate cash or liquidate bonds on the open market. The problem is all their hard assets suffer from cost overruns and their paper assets are owned mainly by central government. The fact that master of Finance SINKYUH also gave us 20 downgrades, makes the NIS paper only buy able by central government.
If central government buys over the worthless paper as time goes by as cash injections are needed, then in real terms all they have done is “given” the NIS our tax dollars as they have bought no tangible asset with any value.
So the Ponzi scheme now will unfold with government honouring Sinkyuhs worthless paper so as to give old Mrs Jones from St Lucy hard cash to take into Carlton Supermarket.
You see in a normal economy the ponzi scheme could of been kept going, but now the need for that little 4 letter word CASH has caused it to fall apart. This plus the fact that the 30,000 laid off will not be paying In their payments come May, also means that a serious negative cashflow crisis will also now be thrown in the mIx as well, creating what could best be described as the perfect economic storm for the NIS.
@ david.
The governor said basically what we are saying but couched it in financial terms and projection based wording. After all you can’t expect the Gov to come out and say the NIS fund is grossly overvalued based on cost overruns and worthless paper. You want the Gov lose the little pick and the nice office!
What do I mean specifically? If we isolate those who are earning $3000 a month and below, how best can the rest of us agree to take a relatively small portion of our salaries in pandemic solidarity bonds to be repaid in 4 years or sooner to allow us to support this extraordinary effort. I am not going to go further on this not but I want every Barbadian to sleep on this. My brothers and sisters, we have to agree that we must work together to guarantee food on the table of every single Barbadian household.
Seems to me, based on what little the PM says that the pandemic bonds will be funded by a tax on everyone making over 3000.
Am I missing a trick? Whose idea was the economic stimulus announced by the president? We are told the CoVid economic council, now re-named the Jobs and Investment Council, is now up and running. But who are the members? Were these names announced in parliament? Who appointed the members and what is their brief?
We may joke at this one-party nation idea, but it is getting serious. The president ignores parliament, looks as if she also ignores her Cabinet colleagues and rides roughshod over the wishes of the people of Barbados. This should raise alarms.
Before we get down to discussing the content of the stimulus (the destination), let us admire the journey (how we got here).
What is the structure of the pandemic bonds? What will the money be used for?
@Dullard
It looks that way.
@all
Do you still remember my proposals at the very beginning of the crisis, for example salary cuts, pension cuts, etc.?
At that time the blogmaster wanted to censor me. Others slandered me as a slave driver.
And what about now! LOL??? Should I demand an apology now?
For those of you who still don’t get it: pandemic bonds are nothing more than a massive pay cut for the middle-class. Of course the naive Aborigines won’t get it, so it’s a cover, a political euphemism for it.
Even mathematically, these bonds cannot be repaid.
POLITICAL DISCLAIMER:
I am not saying this to criticize our gov. On the contrary, I am very much in favour of a salary cut because the Barbados dollar is totally overvalued. If it were up to me, the entire salary over the $3,000 limit would be paid in bonds. Let people wallpaper their toilets with it.
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