Mascoll enters Credit Suisse loan row

Economic advisor to the opposition Barbados Labour Party, Dr Clyde Mascoll, has added his voice to the ongoing row between Finance Minister Chris Sinckler and Opposition Leader Mia Mottley, over government’s servicing of an approximately $88 million loan from Swiss bank, Credit Suisse.

Mottley claimed that government did not repay the amount on the due date of June 18 – a charge that Sinckler denied.

At a news conference yesterday, Mascoll questioned the level of installments being paid on the loan, and pointed out that under the terms and conditions of the loan presented to parliament, the principal repayment was to be done in eight semi-annual amortizations, commencing 18 months after the financial close, which was December 2013.

“According to the terms and conditions of the loan the first principal payment was to be $56.25 million,” Mascoll said.

“The question is why did the Government only pay $20.63 million as opposed to $56.25 million on June 18, 2015 for principal alone. Barbados was supposed to pay 8 semi-annual amortizations payments of equal amounts and the amount was $56.25 million.”

Mascoll, who is one of Barbados leading economists, charged that a commitment of $56.25 million would have weakened the country’s foreign reserves even more at the end of June 2015.

He noted that one of the reasons for the Credit Suisse loan was to build the country’s foreign reserves which had declined by $175.9 million since the loan was acquired.

Mascoll also called for more transparency on the issue, noting that “The interest rate on the loan was supposed to range from 7.5 to 8.5 per cent. By the time of the Estimates the interest rate quoted was 8.84 per cent.

“The interest rate could have been increased as a result of a downgrading of the country’s credit rating that has occurred subsequent to the loan. Was the interest rate on the loan pushed up? If so what is it? Is the increase because of the re-financing or the downgrading of the country’s credit rating in the latter part of December 2014?” he said.

Meanwhile Mottley has reiterated calls for the finance minister to “come clean” and tell the country if he has entered into a debt-restructuring programme with Credit Suisse International Bank, over the repayment of the loan.

Opposition Leader Mia Mottley speaking at today’s press conference.
Opposition Leader Mia Mottley

Mottley told a press conference yesterday that government was now paying $42.12 million instead of what should have been closer to $78 million, and also charged that government was engaging in the restructuring of the loan under the cover of darkness.

The St Michael North East MP quoted from  Sinckler’s 2015/2016 Financial Statement and Budgetary Proposals that “This administration has no plans to engage in a frolic on the type of debt restructuring which has now seemingly crept into the discourse of the proponents of the economics of the easy way out.”

Arguing that the minister has now taken a different course of action from what was spelt out on June 15 in his Budget, Mottley asked: “Is he now accepting as has been put by former Prime Minister Owen Arthur and by his own Cabinet colleague Dr David Estwick that Barbados needs to address the issue of debt-refinancing in a sensible way?

“You cannot tell Barbadians that you are going to change how you pay, pay less than what you were required to pay, pay longer and that is not a form of refinancing.

“Barbadians want to know why you paid less. Is the loan longer than December 2018 and if it is longer than December 2018 will Barbadians incur millions of dollars in additional interest for that extension?” Mottley added.

She referred to the terms and conditions of hire purchase agreements, which stipulate that a fee will be incurred if the individual cannot meet the agreed payments.

“What is the fee that the Democratic Labour Party has had to pay in order to allow Credit Suisse and the others holding the debt to accept $42 .12 million instead of the full amount that was expected. Is that fee near to US $200 000. The Minister of Finance must tell us.”

Mottley also raised questions last week over whether the terms and conditions of the loan had been secretly altered.  But a statement from the Ministry of Finance on Friday dismissed the possibility, saying the opposition leader should have known better.

“Miss Mottley further knows – or perhaps doesn’t – that any material alterations to the official and original terms of any loan contract between a sovereign country and its creditors to the extent that introduces new payment terms and conditions, constitutes a direct default or technical default as so classified by international capital markets and the international ratings agencies.

“It is therefore absolutely impossible for any Government of Barbados to surreptitiously alter the original terms and conditions of any loan, so as to permit it to break the original terms and pay less on previously agreed terms, and worse yet, to inveigle a major international bank to accompany it in such mischief, as the arranger of a major syndicated loan involving varied investors,” Sinckler said.








12 Responses to Mascoll enters Credit Suisse loan row

  1. Coloured Man
    Coloured Man July 26, 2015 at 11:29 am

    chris did you lie again

  2. Coloured Man
    Coloured Man July 26, 2015 at 11:29 am

    chris did you lie again

  3. Coloured Man
    Coloured Man July 26, 2015 at 11:29 am

    chris did you lie again

  4. carson c cadogan July 26, 2015 at 1:08 pm

    Lord have mercy , look who Mia brought to back her up.

    The who man who OWEN ARTHUR said, in the House of Assembly, that if he had a retarded child he wouldn’t name him CLYDE MASCOLL.

    A man who the Barbados Labour Party Govt. had no respect for.

    MIA is really scrapping the bottom of the barrel this time.

  5. harry turnover July 26, 2015 at 1:49 pm

    …… and if sh8 had wings,sh8 all like now would have been touching down on the moon with CCC in the cock pit.

    You must refrain from starting sentences and not finishing them.

    • gee-gee July 26, 2015 at 5:17 pm

      you getting pay to talk the big B..S are u gearbox brother? leave Mascoll, Owen and Mia, let them get’on with the peoples business please, we need to know

  6. carson c cadogan July 26, 2015 at 5:35 pm

    Very informative information about Clyde Mascoll.

  7. Bajan boy July 26, 2015 at 6:20 pm

    It is so unfortunate that such illiterate people as the one who gives his name as Carson Cadogan still occupy space around that it’s a shame.When all of the so called graduates who enjoyed a free ride in Cave Hill were shouting from their lofty chambers to pay tuition at UWI he was the only grateful and intelligent one finding a way to help our young people continue to educate themselves for this difficult world of work they now face. He was the one making suggestions to this out of touch uncaring Government on how to get the economy moving again they did what they felt like and what’s the result.
    These dumb and blinded DLP supporters get into the cracks and crevices and never hear the message they won’t look at the fact that very few of their colleagues speak to the PM and that he has no contes as they continue to take this country down the gutter.
    Mia with his assistance by God’s grace is the only little hope we have if our children are to have a future and May God bless them.

  8. harry turnover July 26, 2015 at 6:46 pm

    This Carson Cadogan is what you would call a YARD FOWL TO THE BONE…I wonder if he is from St.John aka a JOHNNY !

  9. Bajan boy July 27, 2015 at 10:11 am

    We all know that Clyde Mascoll has ten times more credibility and a hundred time more intelligence than Chris Sinckler.

  10. ARG Chronicles July 27, 2015 at 10:52 am

    When-ever Dr. Clyde Mascoll opens his mouth, the personal hate and malice for the former party which he lead, and defended for years is quite evident. I enjoy reading other sides and other views of stories etc, I however am always forced to read Mascoll’s contribution, in the same manor I salt my pots. “With caution and sparingly”. I sometimes wonder if his pronouncements and pontifications are merely vengeance in actions. (Just thinking aloud) lol

    Secondly, why is it necessary to launch personal attracts on supporters of either party, or an individual whose views differ to yours? Why can’t we have robust, yet civilize discussions, even arguments here with-out calling contributors who differ in view “illiterate” or other names. I am sure as adults we can have a discussion, and hold our positions with-out behaving as though, the other side is our sworn enemy. Hey we are all Barbadians first, we all love this country, we simply see things differently.

  11. Wayne Dread July 29, 2015 at 8:33 am

    The bottom line of this whole issue is this, the barbados labour party left a dirty house and trying to ensure that they return to a clean house. Mascot need to preserve his skills ,expertise and knowledge to clean up,if they do the unlikely and win the election.


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