Too Much Debt Man!

Recently the blogmaster received an email expressing concern about Barbados’s foreign debt stock as the economists refer to it. A look at Central Bank’s Review of Barbados’ Economic Performance (January to December 2021) listed the following.

Gross Central Government Debt stood at (BDS $millions):


Gross Central Government Debt = Domestic Debt + External Debt+ Domestic and External Arrears

Of the gross debt owed by government, external debt stood at (BDS $millions):


According to the central bank report the uptick in in external debt was due to an increased reliance on policy based loans, the benefit of which kept the average interest rate on debt stable. The blogmaster assumes the benefit of a policy based loan besides its purpose of targeting specific sectors for reform and strengthening is the low interest rate. 

In the period 2018 to 2021 the government borrowed as seen on the central bank graph, total debt to GDP was recorded at 136.3% with foreign debt being 33.9% of total debt. It should be obvious a large component of USD1.5 billion in foreign reserves is the result of heavy inflows from policy based loans contracted in the pandemic years of 2020 and 2021. 

Ministry of Finance and Central Bank of Barbados

From the following graph it should be clear Barbados’ debt load should not be viewed through a political lense. Successive governments have accessed heavy borrowing – both local and foreign to finance government’s operations over the years. The slowdown in the global economy caused by the ongoing pandemic has had a devastating effect on the economy of Barbados by eroding gains from the debt restructure administered in 2018. With the fickle tourism sector the major foreign exchange earner, Barbados has to be hopeful it continues to rebound to be able to honour its external debt obligations. Hopefully our planners at the strident insistence of the citizenry will make this a strategic priority.

Ministry of Finance and Central Bank of Barbados

This raises the point of concern indicated in the email received from a concerned BU family memeber, who are our foreign creditors and are Barbadians comfortable that having mortgaged the future of our great grand children, there is sufficient capacity of the country to service its debt. In 2018 local and foreign bondholders suffered a ‘haircut’ because debt to GDP was too high and the country suffered several downgraded by credit rating agencies. 

The blogmaster does not have a listing of our local and foreign creditors. However the concern China has aggressively been increasing its stock in the island has been refuted by financial consultant to the government Avanish Persaud, evidencing that China’s exposure in Barbados represents ‘only’ $300 million or less than 3% of the 13.3 billion gross government debt.

While it is comforting that foreign debt as a % of GDP is low, in real terms in represents a liability the country will struggle to honour given our heavy dependence on one sector to earn foreign exchange. To make matters worse, in the short – and possibly medium term – the ongoing conflict in the Ukraine will create additional economic pressure with the price of commodities forecast to spike. 

The government owes it to the country to implement a plan to disrupt consumer behaviour. The typical Barbadian aspires to buy a car, travel and to engage in a level of consumption spending on durables that is inimical to the national interest. The blogmaster is not suggesting that individuals should not aspire to acquire material things to appease a sense of aggrandizement. However, if it means Barbadians are being encouraged to cut off the nose to spite the face then we are spitting in the air.

Are Barbadians aware of the perilous state of affairs we are operating in?

101 thoughts on “Too Much Debt Man!

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  2. Critical point, how long will the conflict last. It has the potential to decimate our economy to mirror 2008.

    The high fuel price in Barbados

    By Dr Juliet Melville

    Since the beginning of the year, there has been a sharp increase in international energy prices, mirrored in a similar movement in fuel prices here in Barbados. This has been a source of much concern and angst among the population, and has led to strenuous calls for some relief.
    The Government, in response, announced a cap on the value added tax (VAT) take from a litre of gasoline and diesel of 40 cents and 37 cents, respectively, for six months starting March 16, 2022, in a bid to cushion the effect of escalating fuel prices. Since then, there has been a further jump in fuel prices and yet again this has attracted the ire of the public and has led to more calls for relief.
    Since the end of last year, gasoline prices have increased by almost 27 per cent per litre, diesel by 37 per cent and liquefied petroleum gas (LPG) by 14 to 16 per cent, depending on the cylinder size in Barbados.
    Unfavourable comparisons
    Spiralling fuel prices have also led to unfavourable comparisons in Barbados relative to its neighbours. As at April 4, 2022, reported that around the world, the price of gasoline averaged $2.74 per litre and diesel $2.64 per litre. The average gasoline price in Barbados was 51 per cent higher than the world average and the average diesel price exceeded the world average by 31 per cent.
    Information from this same source reveals that fuel is indeed much more costly in Barbados than in other regional countries. Excluding the region’s established oil producers – Venezuela, and Trinidad and Tobago – the average price of gasoline in Barbados exceeded its neighbours by between 34 and 123 per cent, and diesel prices by 12 to 227 per cent.
    The prices of our energy supplies are undoubtedly tied to developments in the international market which we have limited or no control over, but the final prices in different countries are a function of the domestic market structure and more importantly, the taxation policy of various governments. To gain a better understanding of the impact of Government policy on the final price of fuel in Barbados, the retail price of gasoline, diesel and kerosene was disaggregated to identify the components contributing to this.
    The Customs Tariff Amendment Order of 2019 sets out the duties, excise tax and fuel tax (Government charges) that apply to fuel imports into Barbados.
    Industry sources indicated
    that the petroleum dealers apply an average markup of 25 cents per litre per product. Using the information on the Government charges and the petroleum dealers’ markup, the base price (the estimated import price) and the share of the overall tax take in the final price of a litre of gasoline, diesel and kerosene were estimated ( Table 3). Of note, VAT is the only charge that varies directly with price. All other charges and taxes, including the markup, are levied on a per litre basis.
    These charges are independent of price and constitute a fixed amount per litre of fuel irrespective of price. Even before VAT is applied, the Government gets an estimated $1.50 on every litre of gasoline, $0.91 on a litre of diesel and $0.12 on a litre of kerosene. VAT is applied after all other taxes, charges and markup are added to the imported base price. This means that the only component that changes directly with price is the VAT.
    Absorbed increase
    In January, with gasoline retailing at $3.99, the imported (base) price was estimated at $1.64 while Government charges accounted for 53 per cent ($2.10 per litre) of the retail price. With the introduction of the cap on VAT, the tax take on gasoline fell to 49 per cent ($1.97 per litre) as the Government absorbed the 13 cents increase in the imported price (through a reduction in its VAT take) in order to maintain the retail price at $3.99 per litre.
    The cap on VAT moderated the most recent increase in gasoline price, and consumers are paying $4.13 per litre instead of $4.30 per litre. The tax take as a share of the retail price fell by one percentage point to 48 per cent, but the Government is still collecting $1.97 on every litre of gasoline sold. Even before VAT is applied, custom duties, excise taxes and the fuel levy account for over 37 per cent of the final price.
    In the case of diesel, over 40 per cent of the final price consists of taxes. With the cap, this now stands at 37 per cent ($1.28) at a retail price of $3.45/litre. The cap on VAT is saving the consumer about $0.17 per litre on the latest price rise.
    Non-VAT charges make up more than 26 per cent of the final price of a litre of diesel in Barbados.
    Kerosene is the least burdened with Government levies with the tax take averaging around 21 per cent and non-VAT charges accounting for less than ten per cent of the final price.
    Fuel prices in Barbados are indeed higher than the world average and its regional neighbours. Given countries face similar international prices, notwithstanding any action countries may take to source at better prices, Government taxation policy does play a significant role in explaining the final price of fuel.
    Sizeable share
    Taxes and other Government charges account for a sizeable share of the final price of all fuel.
    The markup of the petroleum dealer, while contributing to the retail price, is relatively smaller by comparison.
    In a scenario of rapidly escalating prices, while seeking to purchase fuel at the best possible price, a re-examination of all statutory charges on fuel may be warranted.
    The Government has to perform a delicate balancing act of garnering badly needed revenue while trying to shield the population from the effects of rising energy cost and its adverse impact on disposable income and economic activity.
    Dr Juliet Melville is an independent consultant, former chief economist at the Caribbean Development Bank and former lecturer in the Economics Department at the University of the West Indies, St Augustine, Trinidad.

    Source: Nation


    Experts see possible erosion of lower midde class
    By Colville Mounsey
    With a significant spike in the cost of living following closely on the heels of the COVID-19 pandemic, three prominent academics are warning that this country’s middle class is in jeopardy of further significant erosion.
    In fact, head of the Sir Arthur Lewis Institute of Social and Economic Studies (SALISES), Professor Don Marshall, says that some of the lower middle class may now be in real danger of being “pauperised”.
    His view is supported by economist and Pro Vice-Chancellor of the Board for Undergraduate Studies of the University of the West Indies (UWI) Cave Hill, Professor Justin Robinson, as well as Professor Emeritus of UWI Cave Hill, Michael Howard.
    Marshall said that coming out of the 1940s, when the world went through a series of successive calamities, the current period should have been the solidification of intergenerational wealth transfer for the Barbadian middle class. Instead, those prospects have been greatly diminished as the country battles a series of events at the scale of those experienced in the ’40s.
    “The rising cost of living, which is linked now to rising electricity and fuel, simply now means that coping from the end of April onwards will be a struggle. We are also talking about an onward deterioration and decimation of large swathes of the middle class.
    Businesses in crosshairs
    “The middle class in Barbados . . . came into history after the 1940s, and before that largely black middle class could sink roots enough to allow for clear signs of intergenerational wealth transfer, we are faced with as deep a recession, as deep a level of economic uncertainty, as the 1940s,” he told the Sunday Sun.
    Marshall warned that as a result of the anticipated middle class slide, many small businesses are likely to also be in the crosshairs of the economic fallout, as it is the middle class that supports these enterprises. He said many may be forced to strip away certain
    expenditures from their budgets, making casualties of services such as landscaping, beauty salons, nail technicians and barbershops.
    “The invasion of Ukraine, and the deleterious impact that it is having on the cost of living, is putting a strain on the middle class, including the upper-middle class. This group has had to carry a number of their relatives and a number of households. This includes those who provide services like landscaping and other types of maintenance. It is the middle class that is supporting nail salons, barbershops, bakeries. So, the more pressure that this group faces with the rising cost of living, the sooner they would begin to shed some of those extra cost that come with a sense of wanting to live and not just exist,” he said.
    Robinson said a lot will depend on whether the rise in the cost of living is short term or protracted.
    Run down reserves
    “If these pressures are temporary, the people who don’t have buffers, savings or capacity to absorb this, would face genuine hardship while other persons could see their buffers and reserves running down. One anticipates that if this occurs for three months or so, for the majority of persons the damage need not be long-term. If this, on the other hand, is a protracted crisis, which would be six months or more, some persons who were at the edge can get pushed over the edge.
    “So you can see people falling behind in their bills, you can see defaults on loans. Others could have their savings eroded and they would also cut out any form of discretionary expenditure. So, for example, if they had a helper coming three times per week, they would cut down to one,” he explained.
    Howard is expecting rising fuel costs to cause the middle class the most pain.
    “It is going to affect them significantly because it is the lower middle class and the middle class that own the most cars, so they are going to be hit really hard by that aspect of the cost increase. The commercial entities and the production companies will be affected primarily by the overhead cost in terms of increasing electricity, transportation and so on,” the economist said.

    Source: Nation

  4. That’s why Professor Don Marshall made it into my book, he has a very sound mind.

    necessity BREEDS invention…

    time to get creative, bring forth those new age Black businesses….think outside the conventional go nowhere-ism…it’s a win win…

  5. Our debt problems can be solved by targeting niche markets in all segments we operate to attract premium prices across the board. Our government agencies like BNSI can be tasked with developing, monitoring and certifying business compliance with those high standards and list them on an Authentic Bajan High and Premium Standards List.

    For instance, ministry of agriculture can help develop fully organic, chemical free crop production methods so when the BNSI lab tests, they will be certified organic and be in great demand the world over at premium prices.

  6. Surely Government must realise that fuel costs affects the costs of most other goods & services that every Bajan need to live & survive … specifically, Food, Utility services, etc.

    We cannot continue on this upward spiral ….. ease up on the high taxes on fuel and the rise in the cost of living will slow down!!!

    Remove ALL taxes on Solar vehicles, Solar panels, etc. and allow us to become less dependent on fossil fuels.but NO … regional Governments seem to think that “more is better”, when it comes to taxes, and always try to tax their way out of problems.

    Finally, when will our Government begin to “tighten their belt”? Less overseas trips, new monuments, etc. ….. and dare I say, big salary Ministers & Consultants???

    • It is true which is why a protracted scenario will spell doom for the economy because of the foreign exchange that will have to be used to pay for imports. Look at it like an equation, we continue to burn imported fuel like there is no problem and we are back to dwindling foreign reserves in a situation tourists arrivals although improving, receipts are not at pre covid level.

  7. People know the debt trap that barbadians would face in the future
    However the usual suspect noise makers about all things economic during the past ten years of goverance have suddenly disappeared leaving an open gap of distracted replacements to take control of govt narrative and messages
    Hence loud noises become infused as talking points such as teachers on leave make way
    Now that the burdening debt continues to make a stronghold on the people
    The silence is deafening
    But then again Silence is Golden

  8. Lack of productivity would continue to spell economic doom and gloom for Barbados economy and the Barbadian household
    Spending millions building parks that cannot build gainful revenue
    Productivity is the horse that pulls any economy
    Ask China there economy has the formula
    Instead of becoming beggars China pursue a path to place their economy on a path of production
    Maybe China can teach barbadians how to make paper clips
    Paper clips and hair pins are of good use and valuable world wide
    Point being that all the symbols in the world in a small economy does not had up to a hill of beans

  9. RE Look at it like an equation, we continue to burn imported fuel like there is no problem and we are back to dwindling foreign reserves in a situation tourists arrivals although improving, receipts are not at pre covid level.
    E.G A x B = AB

  10. “It should be obvious a large component of USD1.5 billion in foreign reserves is the result of heavy inflows from policy based loans contracted in the pandemic years of 2020 and 2021.”

    I told you so ever since!

    With the massive increase in foreign currency loans, our situation has worsened dramatically. We will not be able to service these loans.

    Since 2008, i.e. for about 15 years, we have had no economic growth at all. Our excise duties and tariffs are far too high, the population is lazy and superstitious (see Corona vaccination), the welfare state is rampant like cancer, rebellious union leaders like the dishonourable senator are terrorising businesses, the native mob is rampaging against minorities at rallies in Bridgetown under the eyes of the government and last but not least, our Taliban rules on Corona are scaring away tourists to other pepper islands.

    There is no hope at all that we will ever grow out of debt. The 1966 Declaration of Independence was not a liberation but a prelude to economic decline, littering of the island, crime and more.

  11. take a look at whats going on in sri lanka……..and they have stuff to sell….your in trouble .Time to raise your exports…..of people.

  12. Oil prices will start to fall again after summer. Travel is over am production catches up with demand

    Russia was fighting war and there oppositions supported by USA for donkey ears

    • There is pent up demand in the global economy because of disruption to supply chain caused by the pandemic. The strategic timing of the Russia Ukraine conflict only serves to heap on the problem SIDs will experience.

  13. Professor Don Marshall, says that some of the lower middle class may now be in real danger of being “pauperised”.

    We could not want it said any clearer!’
    If the lower middle is pauperized, it means the ones under that would be economically destroyed.

    • @Willam

      All the passengers onboard a boat taking on water in the middle of the ocean with a lifeboat with limited capacity will mean what?

  14. Politicians have a finite time in powah, so debt doesn’t faze them, only the cost of servicing that debt. They ‘expect’ to refinance whenever it comes due. It will likely be another’s problem.
    If push comes to shove, you default.
    For inexplicable (political?) reasons “we” have allowed inflation to spike. What happens when Central Banks and Central Government become one.

  15. Have these 2021 figures got a typo/extra digit (Of the gross debt owed by government, external debt stood at (BDS $millions):


    44,84.4 ??

  16. RE All the passengers onboard a boat taking on water in the middle of the ocean with a lifeboat with limited capacity will mean what?


  17. @ William Skinner April 17, 2022 10:01 AM

    Our so-called middle class only exists thanks to horrendous debts.

    Time to bury the middle class!

  18. Barbados must be one of the most indebted nations on earth. Does anybody know how and where these loans were spent? Did the government ensure that all loans’ monies received were spent frugally and that the maximum value was extracted on their expenditures.

    I Just read in today’s Nation, how yet another bridge was closed in St Andrews. This is the second bridge closure in as many weeks within the same parish.

    Last week we saw Mia visiting a BWA pumping station which provided the island with 30 percent of the islands water output. You guessed it the station was on the point of collapse and required major intensive surgery just to keep it operating.

    Our country has built up unlimited debt and yet our infrastructure remains inadequate and on the point of collapse.

    In this respect we should twin ourselves with Zambia, a country which is on the point of collapse and will soon be owned by foreigners.

  19. “You guessed it the station was on the point of collapse and required major intensive surgery just to keep it operating.”

    billions of dollars unaccounted for but the pipes that carry life giving water are over a 100 years old, degraded to the point of delivering filth or nothing at all to keep the people alive, and around long before at least 99.9999% of us, they did not see repairing it in the last 40 years as a priority, but every useless parasite/vampire and useless unhealthy thing.. was more important……..

    that alone speaks volumes and for itself…

    but the fowls will tell ya..”we doah drink water, we doan like it”

  20. 40 yrs???
    You don’t know what you talking about

    There was a main replacement program started under the OA government

    • Please do not let this blog go into a rabbit hole. Both governments have been incompetent replacing old mains over the years. Barbados has a dense and intricate network of water mains known to be over 100 years old and must be systematically replaced by implementing a structured program to do so. We have had a mains replacement project going in recent years but it was overdue because of incompetence. Let us move on. We are quick to dig rabbit holes but ignore the debt challenge because of limited sectors designed to generate foreign exchange in the local economy.

  21. “Overview of Resources. Zambia’s natural resources include uranium, silver, cobalt, copper, coal, lead, silver, zinc, emeralds and gold. Zambia is also a chief global producer of semiprecious gemstones and cobalt.”

    TLSN…the worse thing you can do is give Black people a title and power over each other….most of them run everything into the ground just to prove how powerful and DUMB they are with their swollen heads……..Zambia was warned for YEARS and still played fast and loose despite knowing those with ulterior motives……..they have no excuse..

    the people complained how they allow others to enter the country, nonblacks and do as they like, now htey will pay the price, no sympathy, leave them to the people..

    Barbados has none either, they had the time and ACCESS to loans…money generated from the treasury and pension fund…

  22. What is too much debt? What factors decide the size of the debt? The debt is predominantly local. Why should a debt owed to ourselves be a problem? What was this debt a substitute for? Can we eat our cake and still have it?

    • @Vincent

      Having our cake and eating it too is separate to having too much debt. The two situations are not meshing.

  23. @ DavidBu
    They do mesh. They are opposites. Why did GoB incur the debts? If you can answer that ,you will see the mesh.

    • @Vincent

      You would have noted in the blogmaster’s submission there is a mention the need to disrupt consumption spend behaviour. Isn’t this where leadership plays a role?

  24. @ David
    Where are the solutions from the administration?
    Where are the economic management policies?
    Are going to continue blaming the so- called lose decade ?
    Are we going to blame COVID forever?’
    Are we going to blame the war in the Ukraine forever?
    When are we going to admit that the pauperism of the poor started long before the lost decade, COVID or the war in Ukraine ?
    Are we going to blame the citizens and their consumption habits forever?
    Again I ask:
    What is this administration’s economic policy?

    • @William

      The answers are obvious. This administration has been happy to operate in reactive mode. There is the inkling of a digital policy. One sees sone effort to forge diplomatic and trade relations with non traditional players. One saw an attempt to take a hit with the debt restructure to access policy based loans to help with repairs infrastructure. That said we need to see more, after four years we need to see a more aggressive blueprint how we plan to shift from tourism sector.

  25. @ David BU
    Why do you want to disrupt the consumption of the population? The population needs to consume in order to live. The need to consume drives production and create employment. Consumption is the motivation in the formation of a society/ economy.
    Moreover, can the so called leaders change the population consumption pattern? You assign to them power that they do not have. You are putting Coyote’s proverbial jackass before the cart. We ,the people ,elected the GoB to ensure there is a flow of consumption goods and services. .

    • @Vincent

      You must be aware of your be terms ‘ good and bad debt’. Then there is the lack of good governance where citizens cannot be comfortable monies borrowed has been efficiently allocated and spent.


  26. @ David
    And that’s the problem ! There is no coherent economic policy. And until the MOF can present , explain and implement such a plan, we are going nowhere. This is a major disappointment.
    What really are the advisers telling the MOF ? The country is on an economic precipice.
    Mottley appears clueless.

    • @William

      The irony is that in the land of the blind the one eye man or woman is king or queen. The seriousness of our predicament can be measured in the fact this government was given another overwhelming mandate. We will not see the fundamental changes we want until leaders emerge at every level in civil society. We are too passive, always relying on a maximum leader. We have allowed the 2008 financial crisis and the ongoing pandemic to go to waste. Tinkering will no longer work.

  27. William…it gets worse as predicted, but that news will soon catch up…it’s been floating around for weeks…

  28. FrankApril 17, 2022 9:34 AM

    Ask China there economy has the formula…
    It is called $3/hr wages.

    And what is Barbados US3.50 per hour
    The equivalent of China and yet govt can’t produce a rubber band

  29. @ David BU
    The citizens elected the GoB. I believe their record of efficient management of the Public Finances was a motivating factor. The masses’ preferred drink is not champagne. So that phrase is more applicable to the “meritocracy”.
    Please bear in mind that exogenous factors have not changed significantly over the past four years. Do not expect too much ,unless you want to be disappointed. The world is still as uncertain as in 2020 CE

    • @William

      The problem is bigger than to focus on the macro. In the 70s and 80s first time employees saved and tried to secure piece of the rock or some investment. Today it is about buying a vehicle. In the same period our governments tried to balance the national budget, these days it is about financing the deficit. Our expectations have become unrealistic to match the current state of affairs.

  30. “And what is Barbados US3.50 per hour
    The equivalent of China and yet govt can’t produce a rubber band”


  31. @ David BU at 3 :37 PM.

    You have now meshed them:
    Balanced Budget,
    Budget for a surplus
    Budget for a deficit.
    Deficits are extinguished by:
    More taxes
    a cut in expenditure
    Eating your cake and having it relates to having a deficit and not raising taxes. The alternative is to borrow.

  32. @angela coxApril 17, 2022 3:24 PM

    That is why we should halve wages and double the working week. Since the disastrous declaration of independence in 1966, the economic situation has deteriorated dramatically. Once we were the crown jewel of the British Empire, now we are a poverty stricken republic which even cannot afford a proper head of state.

    Indeed, we have one of the best governments in the world. However, this is of little use because the masses are too arrogant and too lazy.

  33. Imagine an idiot trying to diss China economy talking about low wages
    When here in Barbados the wages are lower
    Also think how much China 3 dollar per hr can buy in China given that China produces most of the world wide products
    Only an idiot would jump out the gate to piss on China wages which although low can buy much more in China than the Barbados dollar in Barbados

  34. DavidApril 17, 2022 5:28 PM

    Sometimes you should hush.
    Sweatshops in China | War on Want
    Yet govt close eyes when it comes to dealing with countries whose human rights actions are called in to.question
    But then again here at home groups and individuals have brought human rights violations to the attention of officials
    Ask The Minister who just released an asinine report dealing with the mistreatment of girls at GIS
    That u wouldn’t see as violation of human rights would u
    My point being that although China wages are low the economy has ongoing productivity which helps to.keep.prices low making it possible for the low end wage offset the challenges brought with high prices as unlike other economies like Barbados where inflation eats away at the low end wage ender spend immediate making cost of living very high

  35. I advise our honourable government to follow the Chinese model. This means: a single party for the people and the state with a forceful Supreme Leader at the top, a ban on traitorous opposition parties and trade unions, close ties between the media and the state and the party, low wages and double working hours.

    Then we will become a paradise for foreign investors. Stability, security and harmony are better than insecurity, dissonance and crime. Only a strong leader who is on par with President Xi can ensure that. China admires no other country more than Barbados, where citizens voluntarily submit to one-party rule and the unity of powers. The Barbadian model synthesises democracy and enlightened dictatorship to perfection.

    Personally, as an absolutely neutral commentator, I hope that we will see many more elections where the final score is 30:0. To ensure future success, we need a purge of the civil service and the judiciary right now. We need a big loyalty test and a personal oath to our Supreme Leader Mia Mottley. We see in Russia what happens when traitors betray the Supreme Leader.

  36. Tron don’t worry that is the way Barbados is heading
    But wait there are several.problems Barbados needs to address
    Productivity and high debt
    China have both in control
    Don’t see Barbados reaching that level.of power any soon
    Matter of fact Barbados would soon sink before it swim

  37. Regardless of our allegiance to leader and party, it should be clear to all that we need another IMF programme. As long as Barbados exists as an independent territory, we will, as the poorhouse of the Caribbean, be dependent on the goodwill of the IMF. I therefore predict at least 4 more IMF programmes by 2050.

    In a way, at the state level, the old plantation system continues, where the slave was also dependent on the goodwill of his master because he did not know how to help himself with clothes and food.

  38. @ David
    It is obvious that a whole lot of things getting throw at the wall and we hoping something will stick ! For an administration with all the seats and no parliamentary opposition, its performance is way below expectations as far as fashioning a new management approach is concerned.

  39. Everyone pretending to suddenly realize that our ass is grass?
    OVER ten years now Bushie warning of the consequences of brass…
    …and wunna don’t even YET grasp how bad it will get….

  40. China was once demonized viciously
    What China did is story book story
    While most of the western were passing by
    China developed a simple theory of learning how to fish one which included a revamping of it’s school system to benefit it’s economy
    The govt of China have an economic plan that the world now gazes upon with awe
    Meanwhile here in Barbados govt plan trees and build parks
    Yes folks there u have it

    • Even though the numbers show Barbados is indebted to China for less that 3% of gross debt you continue with your headless bs.

  41. Because you live in the USA, you guess that $3/hr means US$3?
    This is a RH Barbadian blog, $3 means 3 Barbadian dollars unless noted otherwise.
    So that translates to US$1.50/hr. And that is generous. Most ordinary Chinese, like the ordinary Bajan you love to relate to, make less than US$400/month.
    Ya think the foreign companies built plants in China due to their highly educated population? Nah. Their labour was/is cheap as RH. Go to China and beg to join a union LOL
    You just want to put everything Bajan down, cause your clowns got drubbed.
    Some Idiot. Guess it takes one to know one?

  42. @ Bush Tea April 17, 2022 9:17 PM

    Anyone who thinks we will ever get out of debt at the current low productivity and overpopulation is either a politician, an idiot, or both combined.

    We need major reforms. We should finally lower wages, extend the working week, weaken unions, implement a currency devaluation, to name just a few examples. Our sleepy population finally needs a strong jolt of electricity to drive them. Just like the cows in the field.

    • Unfortunately we will never be able to repay our debt, it is about maintaining the capacity to service the debt.

  43. China has lower average salary figures compared to other developed economies like the United States and Japan. The annual average wage of a typical Chinese employee is around 3,51,600 Yuan (USD 54,422).Jul 30, 2021
    Although low the average monthly food bill in China is around US 150 per month
    Light and water and gas 50- 100 ,US monthly
    Transportation by bus 30 – 50 US
    Comparatively speaking to other small islands the average Chinese income can support daily household requirements including rent which is about 200 to 700 hundred US monthly
    While in small island nations the rise of inflation eats away at the minimum wage for the low end wager
    The long and short being that China has a high level of productivity a economic and financial source which keeps inflation prices low in the country making it possible for the average household to survive on a low wage
    Until small islands finds the means and methods to produce
    These islands would be forever beggars at international countries door steps while burdening their citizens with high debt and taxes

  44. Speaking about slave labor….who the hell “is delighted” at having the ability to get cheap $300 FORCED LABOR from Cuban doctors…just shows exactly what is done to the local people on the island who CANNOT FIGHT BACK…

    am glad it’s now exposed at the highest level….and emphasizes why the island can NEVER PROSPER outside of thefts, disenfranchisement, slavery, discrimination and oppression…..that’s their curse..

  45. “Everyone pretending to suddenly realize that our ass is grass?”

    the great pretenders, while you were away, i got cussed on here nearly every day for telling them about what is now playing out….but they were so arrogant, uppity and listening only to every lie dripping out the mouths of corrupt politicians as is their wont, that the political pimps threw on their weak armor and fought back….now they have been STRIPPED of their arrogance…

    …..eating the bread the devil kneads might find favor with them, not my taste….it must be genetic..

    thing is if they don’t help themselves and as know it alls, they should know what to do, dog eat their dinner, what am i saying, that has already been eaten…oh, well, guess they are truly on their own..

  46. The blogmaster ‘loves’ to read these editorials designed to feign sympathy for the plight of the masses. What can a broke ass country do to reduce the cost of living? One that is a net importer?

    • A backhanded slap for former MoF Sinckler.

      Congrats to Sinckler on post
      I WRITE TO CONGRATULATE former Minister of Finance Chris Sinkler on his appointment to a position at the World Bank. He was devoted to his job, but in my view he made one critical and lamentable error of judgement when he failed to seek International Monetary Fund (IMF) financial assistance for Barbados. However, his tough experience as Finance Minister after 2013 should serve him well in his new position.
      In an article in the MIDWEEK NATION of October 30, 2013, I recommended to the Barbados Government that Barbados should seriously consider going to the IMF in order to manage more effectively the foreign reserves in order to stabilise the economy.
      I argued that the Barbados Government already had an austerity programme in place in 2013 which could be accommodated under an IMF agreement. I said that if Government delayed going, the international reserves would decline to critically low levels, and the IMF “conditionalities” would be more severe.
      Mr Sinckler, unfortunately, ignored my recommendation at that time.
      In 2016, I made the same recommendation and this time I was supported by the late Professor Owen Arthur, former Prime Minister of Barbados.
      Mr Sinckler rejected
      my second recommendation in the SUNDAY SUN of December 4, 2016. Sinckler said that three years before that date, some of the staff at the IMF believed that an IMF programme without a devaluation could be supported but “they did not believe that they could get that past their front office senior managers on the executive board”.
      He said he respected my views and opinions but “it also helps to be actually present to know truly what the situation is at any given time”.
      In closing, I believe that Mr Sinckler meant well for Barbados in the context of the post-2008 economic crisis and recessionary conditions. The economic problems were large and overwhelming: swollen budget deficits, a bloated public service, multiple state-owned institutions, high unemployment, printing money, draconian taxation, declining foreign reserves, weak tourism earnings and poor economic growth.
      My argument is that an IMF intervention was urgent at that time because the “foreign reserves had to be financed by foreign borrowing and some type of debt restructuring was required”.


  47. What can a broke ass country do to reduce the cost of living? One that is a net importer?

    “Dope will get you through times of no money better than money will get you through times of no dope,” was a favorite catch phrase of Freewheeling Franklin Freak, who was the most street smart of the 1970’s dope smoking comic book trio of stoner brothers “The Fabulous Freak Brothers .” Vintage comic “Further Adventures of Those fabulous Furry Freak Brothers” by Gilbert Shelton 1972

    Toke up and rejoice weed smokers, it’s 420 Day again,

    In honor of the only worldwide holiday celebrating marijuana, who better to celebrate it with than those 1970s’s comic book band of original Doobie brothers “The Fabulous Freak Brothers.”

    This threesome of cold stone dopers who appeared in their own counter-culture comic books in the 1970s lived a life that revolved around procurement and enjoyment of recreational drugs, particularly marijuana . None of them were concerned with employment since jobs were for the Establishment and the only use for money was to score food (for their interminable munchies) and drugs without getting burned by unscrupulous dealers or busted by the “fuzz.”

    Smoking weed was the predominant theme that ran through all the comics and the group live in a state of blissful inertia punctuated by bursts of paranoia

    The Fabulous Furry Freak Brothers was created by Gilbert Shelton. Originally appearing in strip form in the underground newspaper “The Rag” it was published in Austin Texas in 1968.

    1971 is in fact a date that figures prominently in celebrating 420 Day. Back in 1971, five students at San Rafael High School in California would meet at 4:20pm – right after doing their after-school sports- to toke up.

    There are lots of urban myths suggesting the origins of 420 but according to the internet, this is the most credible story out there.

    They met at 4:20 pm outside their school to drive to the area and carried out the search many times. They never found the plants, but it became a tradition, and the group, who called themselves “The Waldos” began using 420 as a shorthand for smoking weed.

    This spread, and 4:20pm became known as the perfect time for toking up, and the number 420 became synonymous with marijuana.

    Far out!

  48. Backhand?
    A full frontal slap.
    The World Bank and IMF are joined at the Hip, sharing the same parent group the UN. Their mission similiar.
    Big Sink & Co opposition to the IMF was so public and ongoing, that their ardent followers now spew the same opinions. Just read BU.
    It is embarassing, that Big Sink, of all the local professionals is the one selected to serve at the World Bank. It is like taking an anti-union buster to serve on an International trade union organization.

  49. “……..while you were away, i got cussed on here nearly every day for telling them about what is now playing out…”


  50. DavidApril 18, 2022 9:12 AM

    The blogmaster ‘loves’ to read these editorials designed to feign sympathy for the plight of the masses. What can a broke ass country do to reduce the cost of living? One that is a net importer

    A broke ass country must learn how to fish in this vast wide world call an economic market
    Instead of being consumers
    Revamp an educated system that teaches marketable solutions to growing an economy

  51. ‘It is embarassing, that Big Sink, of all the local professionals is the one selected to serve at the World Bank. It is like taking an anti-union buster to serve on an International trade union organization”

    but wait…there is more…

  52. @ David April 18, 2022 9:13 AM

    Big Sinck is the ideal choice for the World Bank for many reasons.

    He has fallen away from the DLP and is now a lick serf to our Supreme Leader. Loyalty should be rewarded.

    Furthermore, Big Sinck is preparing our island to go to the World Bank. We don’t have a foreign currency problem. That is the job of the IMF. We have a development problem. That is the job of the World Bank.

  53. No price ease ‘likely’


    ECONOMISTS ARE WARNING Barbadians that they will likely have to bear the brunt of higher fuel and food prices as Government has little financial wriggle room to offer additional relief.
    With commodity prices surging internationally after Russia invaded Ukraine, United Statesbased Barbadian economist Shane Lowe said the authorities could consider providing some assistance to people “who need it most”.
    However, the former Barbados Economic Society president said such help will need to be paid for either through additional taxes,
    cuts in other spending, new borrowing or some combination of the three.
    Must absorb cost
    While former University of the West Indies (UWI) economics lecturer Professor Michael Howard said he believed Barbadians will “have to absorb most of this price shock”, current UWI Professor of Economics Winston Moore suggested it “would be useful for consumers to switch a bit of their spending to local rather than imported products”.
    The deputy principal at the Cave Hill Campus said, however, that while this could be a solution in terms of food, there was no immediate remedy to rising fuel prices.
    Lowe, who is based in Washington DC, told the DAILY NATION that higher prices, as measured by increased inflation, was a global phenomenon, with very little of the current rise in prices likely due to domestic factors.
    “Any available policy options that the Government considers to alleviate the upward pressure of prices on Barbadians must be analysed within the broader economic context. Some governments around the world have opted to provide subsidies on energy prices that help to cushion the impact of higher prices on consumers,” he said.
    “At the same time, other countries have agreed or been advised to remove such subsidies, given the costs involved and the distributional impact across income groups.”
    Lowe noted that energy subsidies can come at a substantial cost to governments “and when applied to all consumers, benefit both the poor and the rich who may be in a much better position to absorb higher prices.
    “In fact, research in other countries suggests that inflation has a much bigger impact on the cost of living of the poor than the wealthy. Therefore, a more targeted approach which provides some relief to only those who need it most would probably be more efficient and effective,” he said.
    “In all of this though, the Government will have to consider how to finance any additional relief that it seeks to give, beyond what it already has provided.”
    The economist said any subsidies or targeted relief Government provided, and the associated financing to provide it, “could depend on the extent of the relief contemplated and the impact that this would have on the Government’s overall budgetary targets”.
    Howard said the impact of higher prices will not only be on motor vehicle drivers, but on the entire production and distribution
    sectors which rely heavily on electricity.
    Waste of time
    He added that subsidies and price controls were “a waste of time, because they require either taxation or finance to finance subsidies”.
    “Barbadians will have to ride out this perhaps for a long time. These are not normal times and a serious war is going on,” he stressed.
    Moore said the largest item in the typical consumers’ basket of items purchased each month in Barbados was food, and pointed out that world food prices have risen by 17 per cent since the start of the year.
    “This will impact on most consumers – rich and poor. It would be useful for consumers to switch a bit of their spending to local rather than imported products. The price of foods grown locally have not increased by as much as imported processed foods,” he said.
    His assessment was that the price of imported fossil fuels will continue to rise until the conflict in Europe is resolved, and that Barbados’ real solutions to this challenge were realistically in the medium to long-term.
    “The Government of Barbados has provided support for individuals to consider changing their vehicle to a hybrid or electric and in the shortterm, reduced the taxes on gasoline and diesel. Nevertheless, rising fuel prices will still feed through to the prices of most things we consume as operating and transport costs rise,” Moore said.
    “Similar to my recommendation for food, the goal would be to switch to more domestic sources of energy over the medium- to long-run, such as solar. Short-run options to offset rising prices are therefore limited, but the medium- to long-run options are areas households should explore.”

    Source: Nation

  54. I really dont have faith in barbados economic future….When trons great leader was asked last week what she thought about her finance ministers stimulus package , she said what can I say…..or guys have big dicks.

  55. And it all falls down….because they could never see the bigger picture..

  56. There is nothing like a scapegoat. Our politics is at a very inferior level because of a raw galloping polarization ; where people are burying their heads in the sand strictly along party lines.
    Why was the NSRL opposed; why did a responsible public servants union publicly stated it had “ crunched” the numbers and a 23 % pay raise was possible?
    Why did union leaders choose to weer opposition party colors in marches.
    Yes. Sinckler’s / DLP policies were ill contrived and were failing resulting in economic chaos and Stuart as PM displayed no leadership.
    However, where was the “ we in this together “ then ? We were fed a whole heap of opposition irresponsibility : Mark Maloney was the worst thing alive; massive corruption was afoot; removing the NSRL was going to bring prices down immediately; all the corrupt ministers were to have “ a come to Jesus moment” or be scurried off to Dodds.; public servants will get the increase they demanded.
    Along came COVID , the volcanic ash, the hurricane and now Ukraine.
    In the meantime we had another election. The unions have been effectively marginalized.
    I remember during the Duffus Commion. It concluded that : all roads lead to Barrow.
    As we sink into an economic paralysis we must now hold Mottley accountable.
    The IMF has indicated another recession is imminent.
    Stuart did not level or even speak to the people.
    Mottley seems in a rather smart way to be taking a lead out of Stuart’s book.
    The apologists can pretend otherwise but at this point the economy is in serious trouble.
    It is time for Mottley to use her often praised communication skills to level with the country.
    This is a “ big works “ happening and it must come through her as Minister of Finance?’
    Time to speak up. We gave her everything she needed politically.
    Now give she must give us leadership beyond political PR .
    We must hear from the Minuster of Finance. Where are you planning to take us. Anybody can bat on a good wicket. We need your skills on this bad one.

  57. We must hear from the Minuster of Finance. Where are you planning to take us. Anybody can bat on a good wicket. We need your skills on this bad one.




  58. @David, that statement 9:20 AM is true but also the one that ‘when one door closes, an opportunity is presented to push open another or indeed crash open anew that same one’. So yes when the “IMF says Russia’s war in Ukraine will ‘severely set back’ global economy” we are reminded that will happen because a majority of the western world want to make Russia pay dearly and they sanctioned them to an extent not previously ever seen and many have vowed to markedly reduce future trade.

    But even as that may go into effect, pause and recognize that close to $14 Billion in armaments and other aid is expected to flow into Ukraine (over time) from the 27 plus nations who have pledged support. Now, of course the loss of trade into and out of Ukraine, the devastation due to the war AND business disruptions in Russia itself are very significant so the net-net economic picture is likely a negative one … BUT across the world there still will be lots of weapons’ manufacturers, aircraft builders and other industrialists and thus their communities who will see increased income inflows.

    During the 2008 financial downturn and years thereafter we seem to forget that at one point nearly $100 Billion per YEAR was spent for a two year time span leading to almost $2 TRILLION over the many years of that war. That’s a LOT of money and angst.

    So for all that IMF/World Bank economic verbiage … WAR is a boon for them and certain segments of the first world economies and it always seems that if most of them had their druthers to do as they pleased …. they would be more war than peace!


  59. “As we sink into an economic paralysis we must now hold Mottley accountable.
    The IMF has indicated another recession is imminent.”

    William…sorry but everything will fly, both shit and fan, either duck or get out of the way..

    who is responsible and be held accountable, no one wanted to broach the subject but wanted to assign blame to the disenfranchised…that will no longer wash…

    a colossal mess, getting bigger, deeper and spreading wider.

  60. The PR message was that planting trees and making Barbados a place of beauty beyond imagination would create jobs and place more revenue in govt coffers

  61. only if they were money trees, some people have to leave the island and send money back, how long before the canadian and brit owners wont be able to do the upkeep on their holiday spots. One of my buddys is just going to let his timeshare go because of cost . The pandemic and inflation is kicking the crap out of everybody everywhere . Not saying dont plant the trees but it doesnt sound like a real plan

  62. It is not our government and our honourable businessmen who are to blame for the dramatic decline, but entirely our masses. They are outright refusing the saving Corona vaccination, thereby endangering tourism, which is as important to us today as the sugarcane plantation used to be.

    It would therefore be best to restrict the right of the masses to vote and instead let Our Supreme Leader rule without elections. Our democracy has failed, the economic figures do not lie. Only an enlightened dictatorship with a Supreme Leader at its head can save us. She knows much better than the people themselves what is good and right for the people.

    We should therefore ban the trade unions, the opposition and all social activists in order to finally create a business environment that will attract foreign investors. So a kind of libertarian utopia in the Caribbean. We need a female Augusta Pinochet!

  63. IMF: Growth will surpass forecast


    THE INTERNATIONAL MONETARY FUND (IMF) is backing the Barbados economy to grow by more than previously projected this year, but it says local consumers should also prepare for higher prices.
    Oil-rich Guyana, with an estimated economic growth forecast of 47.2 per cent in 2022, is the only one of 33 countries in Latin America and the Caribbean whose gross domestic product (GDP) the IMF predicted will expand by more than Barbados’ 11.2 per cent.
    However, the international financial institution’s increased optimism was countered by caution from veteran economist Professor Michael Howard.
    His view is that major risks, especially rising prices and fallout from the war in Ukraine, will challenge Barbados’ ability to achieve double-digit growth in 2022.
    The Barbados GDP forecast, up from the previous 8.5 per cent, came yesterday as the IMF lowered its global growth forecast and its chief economist Pierre-Olivier Gourinchas said the world economy’s prospects “have been severely set back, largely because of Russia’s invasion of Ukraine”.
    With international inflation on the rise, the IMF also said consumer prices will increase by six per cent this year, 1.6 per cent higher than previously predicted.
    Howard told the MIDWEEK NATION that while the IMF upgraded Barbados’ growth forecast to 11.2 per cent, his assessment was that GDP will likely expand by between eight and 8.5 per cent “given the rising prices which would suppress real GDP growth”.
    “Increased growth is also not indicated as a result of the recent turmoil in the world economy as a result of the war on Ukraine,” he said.
    With Central Bank Governor Cleviston Haynes scheduled to present the bank’s first quarter economic review next Wednesday, Howard said he expects the Governor to emphasise increased tourism arrivals, and expansion of services because of the opening up of the economy.
    “Construction, agriculture and other sectors are still marking time as the promised projects have not really got off the ground running. The rise in COVID-19 cases still immobilises part of the workforce and places a dampener on economic activity. The tourism outlook for the summer is not good,” the former University of the West Indies economics lecturer added.
    Outside of Guyana and Barbados, the IMF forecast that the best-performing economies in the CARICOM region will be St Kitts and Nevis (ten per cent), St Lucia (9.7 per cent), Antigua and Barbuda (6.5 per cent), Bahamas (six per cent), Belize (5.7 per cent), Trinidad and Tobago (5.5 per cent), St Vincent and the Grenadines (five per cent), Grenada (3.6 per cent), Dominica (3.3 per cent), Jamaica (2.5 per cent), Suriname (1.8 per cent) and Haiti (0.3 per cent).
    The IMF said in its World Economic Outlook that with fewer direct connections to Europe where war is ongoing, Latin America and the Caribbean were expected to be “more affected by inflation and policy tightening”.
    Global economy
    “Overall growth for the region is expected to moderate to 2.5 per cent during 2022/2023. The fluid international situation means that quantitative forecasts are even more uncertain than usual,” it said.
    “Yet some channels through which the war and associated sanctions will affect the global economy seem relatively clear, even if their magnitudes are difficult to assess.”
    Global growth is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023, which is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.
    Gourinchas said the war in Ukraine had unfolded “even as the global economy has not yet fully recovered from the pandemic”.
    “Even before the war, inflation in many countries had been rising due to supplydemand imbalances and policy support during the pandemic, prompting a tightening of monetary policy. The latest lockdowns in China could cause new bottlenecks in global supply chains,” he said.
    “In this context, beyond its immediate and tragic humanitarian impact, the war will slow economic growth and increase inflation. Overall economic risks have risen sharply, and policy trade-offs have become even more challenging.”
    The French economist said the Ukraine war’s effects would “propagate far and wide – through commodity markets, trade and financial linkages”.
    He stated: “Uncertainty around these projections is considerable, well beyond the usual range. Growth could slow down further while inflation could exceed our projections if, for instance, sanctions extend to Russian energy exports. Continued spread of the virus could give rise to more lethal variants that escape vaccines, prompting new lockdowns and production disruptions.
    “In this difficult environment, national-level policies and multilateral efforts will play an important role. Central banks will need to adjust their policies decisively to ensure that mediumand long-term inflation expectations remain anchored.”
    Gourinchas said clear communication and forward guidance on the outlook for monetary policy “will be essential to minimise the risk of disruptive adjustments”.
    “Several economies will need to consolidate their fiscal balances. This should not impede governments from providing well-targeted support for vulnerable populations, especially in light of high energy and food prices,” he added.
    “Embedding such efforts in a medium-term framework with a clear, credible path for stabilising public debt can help create room to deliver the needed support.”

    Source: Nation

  64. “One of my buddys is just going to let his timeshare go because of cost ”

    while others are actively shopping cheaper destinations..

  65. @DavidApril 20, 2022 5:10 AM

    Economic successes are solely the merit of our honourable government; a recession, on the other hand, must always be attributed to general circumstances or the opposition.

  66. The political parties in barbados are mere extensions of the retail (stock and risk) operations in Barbados. Their primary mission is to make available the foreign exchange that these businesses need to survive (import cover). Every other reason that they present to the public is mere distraction

  67. It is important to note that Caricom leaders and U.S. officials are currently in Barbados discussing AML regulations and de-risking, which has caused the loss of the regions correspondent banks, and has made setting up a bank account in the Caribbean very difficult. This issue hits at the heart of the region’s competitiveness, since correspondent banks are needed to make cross border payments and tap into global supply and value chains. A work around to this is to increase digital payments infrasturcture in the region, therby bypassing some of the regulations. One suspects that the only reason US officials are willing to listen to Caricom now, is because the US dollar is losing global dominace and this is a late attempt to secure U.S. influence in Caribbean. However, opening the dicussion this morning was frank.

  68. “Every other reason that they present to the public is mere distraction”

    say it louder…

  69. 🌿 Four Twenty / 420
    🌿 Herb
    🥦 Broccoli
    🌳 Deciduous Tree
    🍁 Maple Leaf
    🍃 Leaf Fluttering in Wind
    🍀 Four Leaf Clover
    🪴 Potted Plant
    🌿⚗️ – Bong
    🌿🚬 – Joint
    😌💨 – High
    😳🍃 – Stoned
    😶🍳 – Cooked
    😳🔥 – Blazed
    😮‍💨 Face Exhaling
    😶‍🌫️ Face in Clouds

  70. PM: Regulations not across board
    PRIME MINISTER Mia Amor Mottley has joined other CARICOM leaders voicing objection to the imposition of the harsh sanction and regulation of their financial sectors, while money launderers are taking advantage of opportunities in larger, more powerful jurisdictions that are not similarly regulated.
    The matter got the ear of the chairwoman of the US House Committee on Financial Services, Maxine Waters who headed a United States congressional delegation attending a Caribbean Financial Access Roundtable in Barbados yesterday.
    Declaring that the Government of Barbados was dedicated to the international fight against financial crime, Mottley said: “We are unflinching in our support for international efforts to stop crime, to stop terrorism and to stop their financing.”
    But she noted that countries where financial crimes were more prevalent, were subject to fewer consequences in terms of sanctions, compared to smaller countries like Barbados.
    “We do not hear any of these centres being sanctioned, neither do they face the spectacle of enhanced due diligence. On the other hand countries like Barbados must face this.
    “None of these [small countries] have the capacity to have an impact on international finance. We do not have the capacity to distort global systems, but yet we are asked to carry out the same level of regulation as large countries,” Mottley said. She maintained that “regulation should be appropriate to risk”.
    “The solution to this conundrum for small developing countries is that the international process of fighting money laundering be more focused on money laundering itself. An example of this would be for us to demand that no country could be placed on anti-money laundering sanctions lists unless there is material evidence,” the Barbados Prime Minister suggested.
    In his opening remarks, Prime Minister of Trinidad and Tobago Dr Keith Rowley described the meeting as a family gathering.
    Endorsed remarks
    “What has brought us here today is the effort of those of us in these islands to demand our space and the acknowledgement of our existence in the Americas.
    We are neighbours to the richest, most powerful economy of the world and we are in fact making a demand that we be allowed to participate and to benefit from that accident of geography.”
    In endorsing the remarks of Prime Minister Mottley, the Trinidad leader, directing his remarks to Waters and members of her delegation, pointed out how the financial services regulations particularly in relation to correspondent banking, and “arbitrary self-serving action from the developed world” were adversely affecting the economies of his country and the rest of the Caribbean.
    “Banking is something that we can do, something that we must be allowed to do, and it represents successful diversification of the economies in the Caribbean.”
    CARICOM chairman John Briceno of Belize also expressed his concerns about the issues in question on behalf of CARICOM.
    They received an empathetic hearing and response from Waters.
    Congresswoman Waters said the Caribbean and its people mattered, and pointed out her committee had prioritised and promoted financial access to under-served communities in the United States and especially in the Caribbean over the years. She promised she would be following up on the issues raised, at the level of congressional hearings.

    Source: Nation

  71. Miller…..given recent public utterances, me thinks they are finally READING the tea leaves and see they have NO CONTROL over world events, never did, and it’s time to stop PRETENDING THEY DO, have no clue why they were so deluded…

    but now……..seeing right up in their faces the implications of, some but not all, of the current world conditions….and end results likely…

    Caught in debt trap

    A LOT HAS BEEN said about how much debt Government is grappling with.
    It is a problem that got worse during the COVID-19 pandemic as the economy fell into recession, Government revenues slumped and spending from the public purse increased as more people fell into financial difficulty.
    Significantly less has been said about household debt, which has also probably increased over the last two years, considering that people lost their jobs, personal incomes were reduced and the cost of living increased significantly and continues to rise.
    Businesses, especially micro and small enterprises, have also had a tough time.
    Increased indebtedness of households and small businesses is important not only in relation to their financial well-being, but also in the context of the new Barbados Fair Credit Reporting Act, which was passed by Parliament in December 2021 and was recently proclaimed.
    The Central Bank says that with this new legislation now in effect, which is intended to regularise credit reporting activities, Barbadians can expect to see their credit history being a bigger factor in how easily they can access loans or other types of credit, or even find a place to live. It explained that credit reporting was the process of compiling information about a person’s (or entity’s) credit and repayment patterns.
    The bank noted that this information was collected and analysed by credit bureaus, which then prepared credit reports and may assign the person a credit score. An individual’s credit score estimates their ability to meet their financial obligations. Credit bureaus then provide that information to financial institutions and other businesses that subscribe
    to them, it added.
    The Central Bank also said that this meant that when you applied for a loan, sought to purchase an item on hire purchase, or tried to rent an apartment or house, the business could check your track record and base their decision on that. Importantly, the legislation mandates that a financial institution, company, or potential landlord will need an individual’s permission to access their credit report, but it is also noteworthy that these entities can make that permission a condition of them doing business with you, the bank added.
    Given the present state of the economy, and the personal debt challenges and reduced incomes previously mentioned, it will be difficult to immediately measure the real success of credit reporting in Barbados at this time. This is especially when Central Bank data has shown that Barbadians have been doing much more saving than borrowing during the last two years. People are trying to keep their heads above water.
    This is unlikely to change in the short term, and certainly not until consumer confidence increases and Barbadians’ spending power improves as the economy recovers. Solving the personal indebtedness problem faced by consumers now is the more pressing concern.
    Just as solutions must be found for managing and reducing the country’s debt, especially that which was incurred during the pandemic, the debt woes of Barbadian households must also be seen as an issue in need of urgent attention.

    Source: Nation

  73. The people have been told in the last five years to AVOID DEBT at all cost….slam the phone down and close the doors on slick talkers who enable debt entrapment……..stop listening to lying politicians and their political pimps..,,or ya will always be indebted..

    they did not listen so they trapped themselves…willingly…

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