Not only has the interest rate been slashed but some domestic holders of government securities will have to wait a while longer before receiving payments that were due on December 31, 2018.
According to the Central Bank of Barbados, it anticipates that all payments that were missed three days ago would be received by Friday, January 11.
The financial institution, in a statement on Thursday evening, apologized for the delay saying it was due to changes that had to be implemented to the computerized system as a result of the new structure of Government securities.
“We apologize for the delay that persons have been experiencing in receiving their interest,” said Director of Banking and Investments at the Central Bank Julia Weekes.
“As we mentioned previously, because of the new structure of Government securities, we have had to change our computerized system, and we are still experiencing some challenges with implementation. As a result, where previously interest payments would have been made through an automated system, this set of payments has to be done manually. Nevertheless, we anticipate that the payments will be made within a week,” said Weekes.
It was last September that a debt restructuring deal for local holders of government paper was announced, three months after Government had suspended all debt payments.
Under the new arrangement, the majority of debt is to be swapped for new debt instruments with lower interest rates and a longer period over which it would be repaid.
Weekes assured investors that the bank was working assiduously with the external providers to iron out the “systems-related difficulties”.
She also explained that, with the assumption of responsibility for investors who previously held treasury bills and state-owned enterprises debt, part of the delay for some bondholders was attributable to the absence of banking details for some of the persons who were to receive interest payments at the end of last year.
“We will reach out to these persons so they can also be paid their interest,” Weekes stated.
As at September 11 last year, local individuals and firms held more than $6.246 billion in Government paper.