The following was posted as a comment to the Central Bank of Barbados Review of the Economy: January to September 2019 blog by Walter Blackman, Actuary and son of the soil in reply to the following by the blogmaster:
@John A, Walter, Northern Observer et al, You guys read this document?”
https://barbadosunderground.net/wp-content/uploads/2019/10/launch-press-release-.pdf
So far, we have been provided information on the external debt restructuring exercise from three sources:
First, the press release from the Ministry of Finance, Economic Affairs & Investment mentioned 5 bonds:
7.8% bond, maturing in 2019
Floating rate loan maturing in 2019
7.25% Note maturing in 2021
7.00% Note maturing in 2022
6.625% Note maturing in 2035
The following points should be noted:
Maturity date given is 2029.
New interest rate is 6.500%.
No Face Values are given.
No specific mention is made of the Credit Suisse loan.Second, an article from Barbados Today, dated October 24, 2019, lists the following 4 loans:
150M due 2021
220 M due 2022
119M due 2035
225M Credit Suisse LoanThe following points should be noted:
No Maturity dates are given.
No “old” or renegotiated interest rates are given.
We are given Face Values of the loans for the first time.
Specific mention is made of the Credit Suisse loan for the first time, but we are only told the Face Value is 225M.Third, another Press Release made by the Ministry of Finance, Economic Affairs & Investment (you provided a link above) dated November 5, 2019 lists the same 4 loans mentioned by Barbados Today on October 24, 2019:
150M @ 7.25% due 2021 (Face Value Agrees with Barbados Today)
200M @ 7.00% due 2022 (Barbados Today said 220M)
190M @ 6.625% due 2035 (Barbados Today said 119M)
225M Credit Suisse LoanThe following points should be noted:
Excluding the Credit Suisse Loan, the total Face Value of the other 3 loans amount to 540M. Is this the “renegotiated” value? if so, what were the original face values that existed before the restructuring?
If these are the original Face Values, what are the new negotiated values?
What was the total value of the external debt payments that the Government of Barbados refused to pay after May 2018?How was the Credit Suisse Loan repackaged?
Conclusively, I do not believe that press releases from the Ministry of Finance, and articles from the media have given members of the public enough information to determine the amount of savings that accrued to Barbados from the external debt restructuring exercise.