If you hold Treasury Notes, Treasury Bills and Debentures in the name of the Government of Barbados, you have until five o’clock Friday evening to accept the proposal for restructured debt, the IMF official attached to the Government has said.
The official, Barbados-born economist Dr Kevin Greenidge, who has been embedded in the Government as a senior technical advisor, issued the reminder while accepting that the proposed haircut and drawn-out payment terms would be difficult for many Barbadian citizens holding Government paper.
Government recognized that the terms were difficult ones, as individuals and pensioners were being asked to stretch out the repayment of their debt to 15 years, and accept reduced interest rates, he said in a Government Information Service release.
“But these changes have become necessary because the debt burden is otherwise unsustainable, and continued repayments would only further undermine the Barbados dollar,” he noted.
The Central Bank is to tally the responses to the offer letters and an announcement should be made on the final decision a week from Friday, he announced.
“After that, the Central Bank will place the new bonds in accounts for each person and input the bank payment information it receives. As part of the modernizing process, the Central Bank will no longer send out physical certificates for the new bonds, and will need to collect previously issued certificates for Notes and Debentures. Interest payments will be made on December 31, 2019, for the new bonds,” he explained.