We can still borrow, assures Ince

The recent economic downgrades have not negatively affected Barbados’ ability to borrow.

This assurance today from Parliamentary Secretary in the Ministry of Finance Senator Jeptor Ince, who was attempting to school critics of the Government on how the financial world actually operates.

He argued that while in theory downgrades were expected to make borrowing more expensive, it all depended on the financial institution that was doing the lending.

“[Therefore] it does not necessarily mean that because a country received downgrades that automatically you are going to get an interest rate of ten or 12 per cent on a loan,” Ince said in the Senate while supporting a Government guarantee of $17.625 million at an interest rate of 6.65 per cent for the Barbados Conference Services Limited.

Ince pointed out that the First Citizens loan was due for repayment in ten years and that from the date of disbursement, it is to be repaid in equal monthly installments “representing a blended payment of principal and interest of $201,476 that is worked out by the lending institution.

“So what I am saying is that even with the downgrades, where we are down to ‘C’, Barbados still has the capacity to borrow . . . [but] you have to know the meaning,” Ince said, while complaining that “you would hear comments from some economists and some financial analysts, as well as the Opposition, that it seems that we are in no man’s land”.

On the contrary, Ince said the First Citizens loan was reflective of the confidence that financial institutions still have in the present administration.

“It is clear, that without that confidence we could not achieve a 6.65 per cent rate for ten years, given the fact that we had previous downgrades and present downgrades and you hear the comments that the Government has nowhere to go,” Ince stressed.

Earlier this month Standard & Poor’s downgraded Barbados to ‘CCC+/C’ based on its limited financing alternatives and low international reserves. The New York based agency also issued a negative outlook for the island, while warning that the sustainability of the Barbados dollar was now under threat, amid Government’s continued reliance on the Central Bank to finance its deficit.

The action was quickly followed by a Moody’s downgrade of Government bond and issuer ratings to Caa3.

In its press release Moody’s highlighted Government’s rising debt and its very limited prospects of fiscal reform. It also said that as a consequence, rising domestic and external financing pressures were very likely to impair the Government’s ability to service its debt.

15 Responses to We can still borrow, assures Ince

  1. Sandra Madea
    Sandra Madea March 30, 2017 at 3:39 am

    YOU THINK WE FOOLISH STUPSEEEEE.

    Reply
  2. Sheldine Dyall
    Sheldine Dyall March 30, 2017 at 5:17 am

    This man is a complete joker

    Reply
  3. Eddy Murray
    Eddy Murray March 30, 2017 at 7:09 am

    At what cost?

    Reply
  4. BaJan boy March 30, 2017 at 10:14 am

    Will Ms. Small voice please stop your clownishness for a little while. We have already established how ignorant you are so keep quiet for a little while…

    Reply
  5. Sunshine Sunny Shine March 30, 2017 at 11:09 am

    You clown. Of course Barbados can borrow ya nitwit. No one says Barbados cannot borrow. The borrowing is not the problem it is the interest and what lender will be asking for since Barbados is no longer recognize as having a stable economy with positive outlook.

    Reply
  6. Frank White March 30, 2017 at 12:35 pm

    I thought his pay was a cost overrun?? Them int listening to Owen at all…

    Reply
  7. RB March 30, 2017 at 12:52 pm

    If you are getting 6.65% now, what would you have got without the downgrades? 3% ?

    Reply
  8. BimJim March 30, 2017 at 12:54 pm

    Of course we can borrow, Mr. Ince, but BORROWING IS THE PROBLEM.

    Printing money is also a form of borrowing, except instead of borrowing from an institution we are borrowing from our own futures – and loading up future unborn generations with unacceptable debt.

    No wonder Barbados is in such serious financial trouble, with “wackadoodles” like you encouraging the herd of silent and braying jackasses who run the country to do as they like with ZERO regard for financial sanity.

    Reply
  9. bradg March 30, 2017 at 1:35 pm

    This man is a cost overrun on government’s budget, can they not get rid of that line item???

    Reply
  10. Tedd March 30, 2017 at 1:57 pm

    Borrowing is never a problem for a country or individual, it is the PAYING BACK that becomes the problem and the hardship caused when most of one’s income goes to paying off loans and leaving little for day to day living and investing in the future

    Reply
  11. Tom March 30, 2017 at 2:30 pm

    I detect that the Peter principle applies to the Parliamentary Secretary in the Ministry of Finance.

    Reply
  12. Tony Waterman March 30, 2017 at 2:59 pm

    Parliamentary Secretary in the Ministry of Finance Senator Jeptor Ince:- “The recent economic downgrades have not negatively affected Barbados’ ability to borrow.”

    Why Did Neville Clarke (The Writer) Call this an Assurance, why did he NOT call it a STUPID Statement ?? No one ever said that we could not Borrow Money because of the Downgrade, but what the Stupid Senator is NOT telling us, is what it will be costing us IF we go to Borrow Money, that the PM has ASSURED us we are NOT doing.
    Another thing that the STUPID Senator is NOT telling us is who he thoinks will step up to Lend us Money, after looking at our Credit Rating and what the Ratings agencies thing will happen in the Future with our Economy.

    THis is one SAD,SAD State of affairs, the WORST in my Years as a Bajan.

    Only the Heavenly Father can save us , i don’t even give Mia a chance of rescuing us from this Damnation.

    Reply
  13. Shawn Phillips March 30, 2017 at 5:05 pm

    I am tired of hearing these clowns speak .Yes you can still borrow from the Chinese and no one else because of the deals made between this Government and China .Just now Barbados will be run by China if this Government remains in power. #Call The Election Dems Must Go.

    Reply
  14. Tony Webster March 30, 2017 at 8:03 pm

    Show us the term-sheet, please. Any finder(s) fee(s) paid?
    The gentleman is getting better and better…at insulting the intelligence.of every Bajan above the age of sixteen or so.

    Dear God, is there no limit on what this man can do with his mouth?

    Reply
  15. Nathaniel Samuels March 31, 2017 at 1:57 am

    Of course you can, idiot! No one is saying you cannot borrow but whereas some years go you might have been able to do so at, let us say for argument sake 2%, you will now have to pay more like 6%, simply because of the downgrades that your government has presided over. That makes the cost of borrowing much more expensive compared to a few years ago.
    Please state the facts fully so that people are made aware of and fully understand what is going on.

    Reply

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