$1B more

Government raises its domestic borrowing limit

Government, which is already saddled with $6 billion in debt, today moved to Parliament to increase its borrowing capacity on the local market by $1 billion, with the Opposition accusing it of “financial recklessness”.

Minister of Finance Chris Sinckler piloted in the amendment to the Local Loans Act that allowed the Freundel Stuart administration to up its domestic borrowing limit from $6.5 billion to $7.5 billion.

Speaking on behalf of the Opposition, Member of Parliament for St James Central Kerrie Symmonds said: “The Barbados Labour Party will not do anything to obstruct the Government as it embarks on this perilous and precipitous course of preparing itself for what ultimately will be . . . even more borrowing, neither will we aid or abet, or be party to, what we consider to be further financial recklessness.”

However, in explaining the move, Sinckler said it was a reality of governing small countries with resource constraints that Government would at times be unable to meet commitments for demands, provision of goods and services and the orderly management of the country based on the resources it brings in from taxes and impositions.

“So it is a necessary requirement that facilities be put in place to allow for borrowing for various purposes,” Sinckler said.

“In this case, this is entirely domestic,” he added.

At the last issuance of the Central Bank’s Securities Notice Report, the stock of debentures and Treasury Notes stood at $6.173.8 billion, of which $6.0425 billion was outstanding, the Minister of Finance explained.

He also acknowledged that Barbados’ poor international credit rating, which is currently below investment grade, had affected its foreign borrowing.

However, he suggested that it also a deliberate strategy on the part of Government to incur more domestic than foreign debt since it had more control over domestic circumstances.

“Fortunately for Barbados, we’ve been able to keep that differential more in favour of domestic,” Sinckler said.

18 Responses to $1B more

  1. Tony Webster December 14, 2016 at 5:49 am

    Anuthuh million…sorry…Billion.
    How, exactly, shall we answer our children, when years hence, they are old enough to know a thing or two, and ask us:
    ” Why did you adults allow this to happen?”
    ” Whose fault was it?”
    ” Was he put in the corner for being naughty?”
    ” Was there no solution, no other course of action, to avoid it?”
    “Do adults know our national motto?”

    Perhaps it would be a shot “below the belt”…but you know kids…they ask the darnest questions (Ed Linkletter, excuse muh)…so they might be forgiven if they also ask:
    “Howcum adults are not smart like us?”

    Reply
    • Foolbert December 28, 2016 at 2:43 am

      Debt is not new, yet have you ever asked your parents that question?

      The issues is how much worthwhile infrastructure investment has there been in the last twenty-five years?

      Reply
  2. Loretta Griffith December 14, 2016 at 5:59 am

    Who is responsible for BARBADOS’ poor credit rating grade? We seem to have waited until the bottom dropped out of the bucket to take corrective measures.
    What purpose to the economy do the issuing of bonds serve? Why are the roads in such a deplorable state? Everything seems to be falling apart fast.
    I noticed the drains have been cleaned by Andrews Factory and all the debris has been left there for days now to go back into the drains. Rain falls in that area every day. Where is the coordination? Seems we are only spinning top in mud, and wasting TAXPAYERS funds.
    Lack of management again.

    Reply
  3. Sheron Inniss December 14, 2016 at 6:35 am

    This is another hold yuh belly and bawl.

    Reply
  4. harry turnover December 14, 2016 at 7:06 am

    O lord ..we dead now !!

    Reply
  5. Lilian Lloyd
    Lilian Lloyd December 14, 2016 at 7:31 am

    CHRIS HERE WE GO A BORROWING SUNG TO THE TUNE HERE WE GO A CAROLING

    Reply
  6. Carolyn Robertson
    Carolyn Robertson December 14, 2016 at 8:14 am

    Who is giving this reckless man this money to borrow all the time so

    Reply
  7. BaJan boy December 14, 2016 at 8:19 am

    Chris Sinckler should be ashamed to tell Barbadians that the country’s poor credit rating has negatively affected their ability to borrow on the international market. This is the same Sinkler along with Freundel Stuart who felt it necessary to criticize the same agencies and said their decision had no real bearing on how the country would or should progress. They also punished the agencies with laughter. Sadly it is BaJan who suffer while the agencies get the last laugh.

    Reply
    • Gabby December 14, 2016 at 9:52 am

      So true Bajan boy

      Reply
  8. Tamesha Padmore
    Tamesha Padmore December 14, 2016 at 8:24 am

    Sicka he now

    Reply
  9. Sandra Madea
    Sandra Madea December 14, 2016 at 8:27 am

    What are they doing with all that money nothing ain’t getting do can’t see where it’s going but in dems pocket I feel sorry for Barbados.

    Reply
  10. Dwight DC
    Dwight DC December 14, 2016 at 8:32 am

    IMF on the way; it’s not a question of if they coming, it’s a question of how soon.

    Reply
  11. Peter December 14, 2016 at 10:37 am

    Let’s be honest and realistic. Barbados has no natural resources here and now to cover our expenditure. We rely on tourism, Offshore investments and companies and futuristically speaking, let’s say oil although green energy is taking over that zone. We had to borrow money especially in the face of development. Figure it out. However There is a way out of this situation. I have worked out a developmental plan whereby Barbados can earn over US$ 5 Billion in revenue per year. The result? No more VAT, Free education. Free health care. A monorail system linking St. Lucy and St. Philip. More tourists arrival resulting in more occupancy, taxi usage, restaurant services, with more employment. I have elucidated all this and more to three highly esteemed gentlemen, two of whom are retired High Court Judges, one now deceased. and they all told me I should document it and present it. My problem is that it won’t happen if it is not their idea. I only care about a better Barbados.

    Reply
  12. Mike December 14, 2016 at 11:47 am

    Hello Tony, tink it was Art Linkletter, rememba dat fella uh Canadian/American Radio host .

    Reply
  13. jrsmith December 14, 2016 at 2:05 pm

    Our country can do a lot better with what we have , but our nonproductive politicians is in the way of progress ..
    Donald Trump said , if you are going to put the country in debt, make sure the infrastructure is in good shape..
    This government is the only one who borrows money to build hotels…
    My take , Barbados has become a failed economic tax regime , as the government thinks growth in the economy , is by taxing the nation on any and everything…
    If government try to be honest and trustworthy and ministers are reminded of they job titles roll up they sleeves , get their fingers out and do some so and so work , we might have a chance ….

    The only thing is tourism that needs a drastic over haul , even you can see the bad management in that private sector…
    Bajans are stuck with a tourist industry which must be sustain in and out of seasons by bajan wages , and whats left in Barbados after the profits leave the country is not enough to reinvest or offer a reasonable wage as for a better living standard…….

    Why it doesn’t matter to the economy if there is any increase in visitors to barbados…because we have gradually priced ourselves out the market…….

    Reply
  14. Hal Austin December 14, 2016 at 3:27 pm

    What is the borrowing rate, 14 per cent?

    Reply
  15. David Hall December 14, 2016 at 6:08 pm

    This current DLP administration, needs to do the honorable thing and Quit!

    Reply
  16. Troy December 18, 2016 at 8:28 am

    Stinklar do you realise that you are putting a noose around the necks of our people. The next couple of generation will have to slave to repay this debt, while you sit in your condo and laugh. I pray that this madman be stopped in his tracks before we all end up in the hands of the IMF

    Reply

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