Free to borrow

US$500M in CAF funds at Barbados’ disposal

Barbados now has access to over US$500 million in financing from the Latin American Development Bank (CAF) following a decision by the island to acquire more shares in the institution.

This was revealed today by Minister of Finance Chris Sinckler as he led off debate on the Latin American Development Bank Amendment Bill 2017 in the House of Assembly.

While not indicating whether the country, which is facing significant financial problems, intended to seek a major loan from CAF, Sinckler said access to low-cost financing was now enhanced by the move to buy more shares.

Offering some background to the measure, the Member of Parliament for St Michael North West said in 2015 Barbados joined the bank and purchased 3, 522 common shares in CAF for a value of $50 million.

With this shareholding the island could borrow up to four times the value of its shares for domestic purposes and up to eight times for projects that improved integration.

Sinckler revealed that Barbados was given the opportunity by CAF to increase its investments in the bank by an additional 1,080 shares, bringing the total investment to US$65.37 million.

In this connection, he said the island had already borrowed $30 million for Berth 5 expansion at the Bridgetown Port, and $15 million for the purchase of new scanners for the Port and software for the Barbados Revenue Authority (BRA) to create a single platform to capture Value Added Tax, Land Tax, Inland Revenue and the Licensing Department’s revenue streams.

Moreover, he told the House the tendering process was already under way for the single tax system and the acquisition of security scanners with both projects expected to be in place by year-end.

The minister of finance further revealed that Barbados had accessed $35 million from the Latin financial institution for road improvement by the Ministry of Transport and Works, adding that additional funding for roads would come soon.

He informed the House that Barbados had been well served by its participation in CAF because of the reduced financing costs and “simpler” bureaucracy when compared to institutions like the Caribbean Development Bank and the World Bank.

38 Responses to Free to borrow

  1. Ali Baba
    Ali Baba October 3, 2017 at 11:56 pm

    looka da mout, 500 mil up for grabs…paper a-nough gine get lost, never to see the light of day

    Reply
    • Gillian Skeete
      Gillian Skeete October 4, 2017 at 8:43 am

      They could pay off most of the debt reduce that idiot levy also the 2% on all credit card and foreign exchange stuff like they could but won’t instead they will squander all of oh wait they could also pay owing income taxes and pensions!

      Reply
    • Ali Baba
      Ali Baba October 4, 2017 at 9:15 am

      Gillian Skeete PAY OFF THE DEBTS TO THE POUCHES, AN THE 6 ELITE FRIENDS

      Reply
    • Dana Jemmott
      Dana Jemmott October 4, 2017 at 9:25 am

      Ali baba politicians gine get they full pay… lmao

      Reply
  2. MArk Anthony
    MArk Anthony October 4, 2017 at 5:46 am

    Borrowing put us in this mess so it definitely isn’t the way out .

    Reply
    • John Everatt October 4, 2017 at 6:38 pm

      Agreed. We can neither borrow or way out of this mess nor tax our way out. The civil service and government corporations are simply not sustainable at the level they are at. Companies like CBC have to be unloaded as we simply can not afford them any longer. Renewable energy and agriculture must encouraged in a meaningful way. Small business must also be encouraged and lastly the size of government (number of cabinet ministers) and their expenses MUST be reduced.

      Reply
  3. Susan Maynard
    Susan Maynard October 4, 2017 at 6:44 am

    Somebody can tell me if this man head good or he just foolish

    Reply
    • Ali Baba
      Ali Baba October 4, 2017 at 7:56 am

      sue he ain’t foolish, dem just teething

      Reply
    • Cheryl Onita
      Cheryl Onita October 4, 2017 at 8:03 am

      He is a complete goat

      Reply
    • Lynda Bonnett
      Lynda Bonnett October 4, 2017 at 8:08 am

      The idiot know “dem” ent going back in power.,so dem leaving a lot of debts and confusion for the electorate to loose confidence in the other pArty

      Reply
    • Ali Baba
      Ali Baba October 4, 2017 at 9:01 am

      Cheryl Onita COUPLE WITH MOUNTAIN & ALPINE

      Reply
  4. Maaz A Love
    Maaz A Love October 4, 2017 at 6:48 am

    Now that’s good eatin …wow! 1 billion bds.

    Reply
    • Ali Baba
      Ali Baba October 4, 2017 at 7:57 am

      to add to the 7.4 bil the borrow already

      Reply
    • Maaz A Love
      Maaz A Love October 4, 2017 at 8:24 am

      Some bajans to passive. …

      Reply
  5. Daniel Burton
    Daniel Burton October 4, 2017 at 7:23 am

    Borrow borrow borrow, but who gine pay it back.

    Reply
  6. Tony Webster October 4, 2017 at 7:45 am

    Grab it! Our grand-children will look after repayment.
    And the rating-agencies…well…dem sleeping and will not notice a t’ing!

    Reply
  7. Keith Forde
    Keith Forde October 4, 2017 at 8:03 am

    CHRIS,BAJANS WANT THEIR INCOME TAX,THAT IS ALL I’M GONNA TELL YOU..IF YOU FILED LATE,WE ARE PENALIZE.SO GIVE US WHAT IS RIGHTFULLY OURS.

    Reply
  8. Keith Forde
    Keith Forde October 4, 2017 at 8:04 am

    ALL THIS LONG RHETORIC FROM YOU.BORROW DE MONEY AND PEOPLE THEIR INCOME TAX MONEY DUE TO THEM

    Reply
    • Dana Jemmott
      Dana Jemmott October 4, 2017 at 9:27 am

      Keith Forde ain’t no hope for our income tax so u relax urself where u is

      Reply
  9. Viveean Foster
    Viveean Foster October 4, 2017 at 8:33 am

    Borrow it and pay the people their income tax we want money too

    Reply
  10. Carol Grant Cumberbatch
    Carol Grant Cumberbatch October 4, 2017 at 9:16 am

    Is that the Election money wunna going to borrow.

    Reply
  11. Alex Alleyne October 4, 2017 at 9:34 am

    I wonder if it is wise to go after that money, I think it will be GONE before anyone can say “Jack Robinson” and we won’t be able to see a trace of it.
    HOPE I AM WRONG…….for BIM sake.

    Reply
  12. JP Sayers
    JP Sayers October 4, 2017 at 9:39 am

    Where is the SMH incon?

    Reply
  13. Jimmy Alexander
    Jimmy Alexander October 4, 2017 at 9:41 am

    Borrowing MORE money?? Seriously??

    Reply
  14. Sherry Denny
    Sherry Denny October 4, 2017 at 9:47 am

    They know they r not going back in so they making debts for the next party that will come in

    Reply
  15. Faye Heather Greenidge
    Faye Heather Greenidge October 4, 2017 at 9:54 am

    Errol barrow,Tom Adams and bree st John got to be rolling in duh graves smh

    Reply
  16. Tamara Gre
    Tamara Gre October 4, 2017 at 9:57 am

    For the love of Jesus borrow more to pay higher taxes and gas prices ….SOS

    Reply
  17. Ralph W Talma October 4, 2017 at 10:30 am

    1. What interest rate will the CAF be charging, noting we have already used up $45million of the available $50 million?
    2. Barbados is living above its means in its pay/pensions to special groups including MPs. Somebody must tell this Government it must urgently live within its means for the benefit of all Bajans.

    Reply
  18. Greengiant October 4, 2017 at 11:33 am

    Nothing wrong with borrowing if you have the means to pay, and currently we don’t. So let’s endure a bit more bad tasting medicine before we address the borrowing.

    Reply
  19. Kevin October 4, 2017 at 12:41 pm

    This was a very good investment decision. Kudos.

    Reply
  20. Andrew Simpson October 4, 2017 at 1:02 pm

    Wonder what the CAF shares are worth now and whether GOB could sell or redeem. NO more borrowing. Let investors take the risks. Governments are to set policy, provide incentives and put mechanisms in place for right behaviors to flourish, and penalize undesirable practices through fees, fines and taxation.

    Reply
  21. hcalndre October 4, 2017 at 2:41 pm

    @MOFoolery, First things first, tell the public how much is the total debt that Barbados owes that you have borrowed so that every person would know when you`ll go on your merry ways the yard fowls would not be misled. They are billionaires that would be willing to pay off Barbados` debt and own the island and you will be out of your misery.

    Reply
  22. Ossie Moore October 4, 2017 at 2:51 pm

    “It look to me like Barbados done buy nuttun at all”! “Not even a Benz”!

    Reply
  23. Buun October 5, 2017 at 1:19 pm

    Sure why not, DLP can get a few more new car,20% raise in salary out of that money and live large while the taxpayers will be paying it back for the next 100 years. Go tell it to the Devil!

    Reply
  24. Eugene October 5, 2017 at 6:58 pm

    VAT refunds and Tax Refunds to be paid out of this? Some small businesses are sinking because the Government owes them so much money. And they also employ people. It hurts all around

    Reply

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