Overseas creditors will have to wait a while longer to know details of the plan restructuring the debts owed them by the Government, Governor of the Central Bank of Barbados Cleviston Haynes has said.
Giving the assurance that the creditors were not being ignored, Haynes said that they would be getting full details in “the not too distant future”.
Haynes told a breakfast meeting on a debt restructuring plan announced for local creditors on Wednesday that in time a separate package would be provided for external holders of Government debt.
“There will be a separate package for the overseas holders. As you would appreciate the domestic debt constitutes the largest segment of the overall stock of debt and we considered it prudent for us to focus initially on trying to bring to closure the domestic portion,” said Haynes.
“But rest assured that we have been in discussions with the external bond holders and their creditor group and we are hoping to be able to address that situation in the not too distant future,” he added.
On June 1, following the May 24 general election, Prime Minister Mia Mottley announced that as part of an effort to restructure the island’s massive debt of more than 170 per cent of gross domestic product, she would suspend payments due on debts owed to external commercial creditors and enter into an International Monetary Fund (IMF) programme.
But in a statement issued on September 11, days after Government announced that it had reached a staff level agreement with the International Monetary Fund (IMF), the external creditor committee said it has had “no meaningful interaction” with Government in recent weeks over the terms reached under an IMF agreement.
While the committee is prepared to support a stabilization plan and to defer principal payments, it said there was no justification for a cut in interest on external commercial debt, the committee said.
“Any meaningful reduction . . . would have a destabilizing effect on foreign direct investment flows and would further degrade international investor confidence,” it said.