Central Bank says downgrade is unjustified

The Central Bank of Barbados has rejected the latest Standard and Poor’s credit rating downgrade of the country, saying it is without justification.

The international ratings agency yesterday lowered the island’s long-term sovereign rating to “B” from “BB-”, and warned that the potential for a further downgrade existed.

It cautioned that this was likely “if the Government doesn’t succeed in bringing down its wide fiscal deficit, if growth boosted by key investment projects fails to materialize, or if external pressures of persistent current account deficits mount”.

But in a statement issued today, the Central Bank defended the state of the economy, stating it was better than a year ago in every dimension.

“The foreign exchange reserves have stabilized and there is no longer a threat to the value of the Barbados dollar. Tourist arrivals have held up in 2014, and tourist expenditures are estimated to have increased modestly. Airlift has increased for the coming winter tourist season and the tourism outlook has improved. We are witnessing the beginnings of a turnaround in hotel and villa construction, upgrades and refurbishment of tourism facilities, and other construction. The growth of tourism and construction and spinoffs to retail and business services should yield growth of about 1.5 per cent in 2015,” the Central Bank stated.

“Government has demonstrated commitment and fortitude in addressing the fiscal deficit. The adjustment was front loaded, with the shedding of 10 per cent of the public sector work force and the introduction of university fees, along with tax and expenditure measures. Progress has been monitored and adjustments have been made throughout the year. In his most recent statement on December 16 the Minister of Finance made public the budgetary limits set for state owned enterprises, to achieve a fiscal target of no more than 7.2 per cent, a saving of 5.3 per cent, on the deficit for the last fiscal year.”

Additionally, the bank stated that Minister of Finance Chris Sinckler recently provided further evidence of Government’s firm commitment to fiscal consolidation.

It said, too, that servicing of Government’s external debt presented no challenges.

“We are confident in our economic strategy, and we will pursue it to success, with resolute determination and singleness of purpose,” the bank added.

 

35 Responses to Central Bank says downgrade is unjustified

  1. Prince Nick
    Prince Nick December 20, 2014 at 1:36 pm

    Stupse

    Reply
  2. Dawn Franklin
    Dawn Franklin December 20, 2014 at 1:44 pm

    Wanna keep telling bajan lies that the country doing well and SP telling lies when things real bad for this country just now our dollar will be no more.

    Reply
  3. Ouida Burnham
    Ouida Burnham December 20, 2014 at 2:14 pm

    Looooooooooooooooooooooooooool

    Reply
  4. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:19 pm

    Who should we believe…???…

    Reply
  5. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:22 pm

    If I’ve said it once, I’ve said it a thousand times….
    This government will bankrupt this Country….

    Reply
  6. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:22 pm

    If I’ve said it once, I’ve said it a thousand times….
    This government will bankrupt this Country….

    Reply
    • Lorraine Lewis
      Lorraine Lewis December 20, 2014 at 6:10 pm

      …..operative word should be “has”……

      Reply
  7. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:22 pm

    If I’ve said it once, I’ve said it a thousand times….
    This government will bankrupt this Country….

    Reply
    • Lorraine Lewis
      Lorraine Lewis December 20, 2014 at 6:10 pm

      …..operative word should be “has”……

      Reply
  8. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:22 pm

    If I’ve said it once, I’ve said it a thousand times….
    This government will bankrupt this Country….

    Reply
    • Lorraine Lewis
      Lorraine Lewis December 20, 2014 at 6:10 pm

      …..operative word should be “has”……

      Reply
  9. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 2:22 pm

    If I’ve said it once, I’ve said it a thousand times….
    This government will bankrupt this Country….

    Reply
    • Lorraine Lewis
      Lorraine Lewis December 20, 2014 at 6:10 pm

      …..operative word should be “has”……

      Reply
  10. Matthew Greaves
    Matthew Greaves December 20, 2014 at 2:35 pm

    hahaha i was looking for this

    Reply
  11. Angus B Post
    Angus B Post December 20, 2014 at 2:47 pm

    He needs ta resign, ya mean all de time so. ….being governed by idiots is unjustified but it happened

    Reply
  12. Anna Bovell
    Anna Bovell December 20, 2014 at 2:55 pm

    It is truly a case of who should we believe ….private companies evaluating our economy who are very close to my mind with the IMF …an institution with a terrible track record in the Caribbean or The so called Leaders in our Parliament and the Central bank Governor all of whom you cannot ignore have their own political agenda . #Headache

    Reply
  13. kay-rani rosita December 20, 2014 at 3:11 pm

    I agree with the central Bank of Barbados. I too reject the downgrade.

    Reply
  14. kay-rani rosita December 20, 2014 at 3:12 pm

    Stephen D Stewart
    Then it is time you shut up!

    Reply
  15. Sharon Sealy
    Sharon Sealy December 20, 2014 at 3:22 pm

    Just now it might not be a matter of who do we believe but more about who the investors and lending agencies believe……time will tell!!!!!!

    Reply
  16. Cheryl A Rollins
    Cheryl A Rollins December 20, 2014 at 4:00 pm

    That is too easy I am going with Standard and Poors. That man has no credibility and is a Jackass.

    Reply
  17. Princess Tiny Neferua
    Princess Tiny Neferua December 20, 2014 at 4:20 pm

    What S&P said before..never bother you guys…so why comment now

    Reply
  18. Robert Holloway
    Robert Holloway December 20, 2014 at 4:23 pm

    Valid reply
    Of course
    Hope 2015 is better

    Reply
  19. Carl Harper December 20, 2014 at 4:49 pm

    “… the Central Bank defended the state of the economy, stating it was better than a year ago in every dimension.”

    Show the Barbadian people where the Barbados economy is better in “every dimension” than one year ago.

    Even when Moody’s handed Barbados a triple notch downgrade last year, the Central Bank governor said it was unjustified. Hence no one is surprised by the institution’s response to this latest Standard & Poor’s downgrade with a negative outlook.

    The noose is tightening around this DLP government’s neck. This downgrade will add a further 0.5% interest (approximately $2.3 million) on the Credit Suisse loan that was used to prop up the foreign reserves last December.

    Standard & Poor’s is not rating promises and political rhetoric; it is rating economic and fiscal performance results. The fact is, Barbados has failed miserably in meeting its fiscal targets and the situation has worsened–printing money, borrowing from NIS, dipping into Sinking Fund, unemployment at 13.2% and rising, cannot access international credit, local banks giving short-term loans at high interest rates, investors pulling out, cannot pay QEH suppliers, no money to issue income tax returns, unable to pay VAT returns, delays in reimbursing pharmacists, Unemployment Fund near broke, tourism is flat, the deficit has widened to 12.5% of GDP, public sector debt up from 67% to 75% of GDP…and on and on.

    Do you still think S&P’s downgrade is unjustified?

    Reply
  20. Ryan Henry
    Ryan Henry December 20, 2014 at 5:11 pm

    Stupseee!!
    As if they had no idea it was coming

    Reply
  21. Joel C. Payne
    Joel C. Payne December 20, 2014 at 8:12 pm

    Barbados cyar afford the DLP. People marched on Sir Lloyd Erskine Sandiford, and he did for far less wrong.

    Reply
  22. Suzette Edghill
    Suzette Edghill December 20, 2014 at 8:38 pm

    Another joke coming out of CB.

    Reply
  23. Tony Webster December 20, 2014 at 9:09 pm

    It might be just a ‘typo’…and we were really upgraded, perhaps?

    Or maybe, those dastardly Pyongyang fiends just hacked into S&P, and changed our rating because Some wily Baje is gonna mek a kaiso next week about de li’l guy wid de big ego?
    Or we could play our last high-card, and ASK someone at S&P, to MAKE a li’l mistake and bump us UP 2 or 3 notches…in return for life-time accomodation at the coming Chinese Hilton-Marriott thingy. Or at the Forty-Seasons, whichever.
    Come-on guys, doan leave all the heavy-lifting to me…we gotta come up wid something fresher and more original than such dry denunciations. Seeing it’s now Xmas…We could even try a jigger of truth liqeur, plus a splash of reality; shake, don’t stir, and CHEERS…we’ll all soon feel better. Right?

    Reply
  24. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 9:39 pm

    Imagine this…..Chris makes a statement in parliament on Tuesday……by Friday…S&P have downgraded Barbados….

    Reply
  25. Stephen D Stewart
    Stephen D Stewart December 20, 2014 at 9:39 pm

    Imagine this…..Chris makes a statement in parliament on Tuesday……by Friday…S&P have downgraded Barbados….

    Reply
  26. David Simpson
    David Simpson December 20, 2014 at 9:52 pm

    The bank has NEVER thought any of them were justified…..what’s new?

    Reply
  27. Di-sharon Boyce
    Di-sharon Boyce December 20, 2014 at 11:36 pm
    Reply
  28. Di-sharon Boyce
    Di-sharon Boyce December 20, 2014 at 11:36 pm
    Reply
  29. Anson Sobers
    Anson Sobers December 21, 2014 at 9:11 am

    Clearly the central bank and it’s alliances are unaware that projections alone do not determine a rating.

    Past performance as well as past projections and their achievement play a critical role as well.

    In other words for the past 7 years projections has been made and none have been achieved.

    Reply
  30. PO Honey December 21, 2014 at 9:57 pm

    Has anybody noticed the pattern? Everytime barbados is to get a downgrade or bad news of some kind some one of DEM comes up with some upbeat statement. Haven’t any of you realized that yet?

    Reply

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