Debt swap does not mean debt relief.
First it was Ryan Straight singing the benefits of Barbados entering a debt swap arrangement with CIBC FirstCaribbean and Credit Suisse International. It was reported both institutions agreed to the government of Barbados buying back BDS$150 million each. The mechanics of the deal: savings generated from rebooking the debt at a lower rate will be used to finance government’s marine conservation plans.
See related article – Debt swap
Next it was Prime Minister Mia Mottley last week announcing another debt swap worth BBD$600 million to be utilised to finance the upgrade of the controversial South Coast Treatment plant (SCTP). The financial agencies mentioned with the deal were the Inter-American Development Bank, the European Investment Bank, and the Green Climate Fund.
In both cases there should be no criticism about the need for government to allocate resources to upgrade the SCTP and marine environment. Barbados is a small island developing state that is heavily dependent on a pristine environment to maintain its character. The country is beginning to take on a haphazard appearance with the high volume of vehicles on the road, photovoltaic panels littering our fields and hills, houses being planted everywhere, itinerant vending everywhere, et cetera.Continue reading