Barbados’ Outlook to Negative From Stable by S&P

Special thanks to Barbados First for the assist
Minister of Finance Chris Sinckler refuted the rumour that VAT will be hiked to 20%

Minister of Finance Chris Sinckler refuted the rumour that VAT will be hiked to 20%

While Ministers Sealy and Sinckler were delivering a press conference at government headquarters which lacked the content to give hope to Barbadians, Standard & Poor’s posted that it had revised Barbados’ outlook to Negative from Stable. Bottomline, all economic KPIs continue to trend south under the management of Minister Chris Sinckler.

Barbados’ net general government debt burden is expected to rise to above 70% of GDP in fiscal 2013 from 67% in fiscal 2012 and 60% in fiscal 2011. Barbados has fallen back into recession after a very weak recovery in 2010-2012, with average annual real GDP growth of just 0.4% in those years. We are revising the outlook on our long-term rating on Barbados to negative from stable. We are affirming our ‘BB+/B’ sovereign credit ratings on Barbados. We could downgrade Barbados if the wider fiscal deficit is not reversed or if external pressures, associated with persistent current account deficits, mount. NEW YORK (Standard&Poor’s) July 18, 2013–Standard&Poor’s Ratings Services revised its outlook on its long-term rating.

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98 responses to “Barbados’ Outlook to Negative From Stable by S&P

  1. Gabriel Tackle

    @David 6.02am
    When I saw the Weekend Nation front and back pages,I said that the ploy by the DLP to stave off a weekend of vicious criticism in the media has worked.You had to look for the news of the further downgrade on page 6.If a patient who was diagnosed as stable is re-diagnosed as negative,—read unstable
    unresponsive,–then that is a further downgrade in the health of the economy.

  2. Idiots like Carson believe they are dealing with bigger idiots who can’t analyze situations and see them for what they really are………….

  3. Well Well. | July 19, 2013 at 10:44 AM
    Detroit was in that state of downward slide for over 20 years, i.

    as so was Barbados……………. For lack of vision the people would perish the chickens have come home to roost……

  4. millertheanunnaki

    @ ac | July 19, 2013 at 11:06 AM |
    ” Detroit was in that state of downward slide for over 20 years, i.as so was Barbados……………. For lack of vision the people would perish the chickens have come home to roost……”

    Are you admitting that not only the BLP but also the DLP have failed the people of Barbados?

    Are you admitting that the DLP fooled the people into believing they had the answers to rescue the country from the evil clutches of the BLP?

    Are you admitting that Barbados’ current situation is more to blame on the BLP and DLP than any international recession current propagated by this lying DLP as the big bad wolf?
    Are you saying that the chickens have come home to roost with the mongooses waiting in the fowl yard with you as the biggest conspiratorial guard?

    Your time to cackle, ac. But we doubt it, since as yesterday you have turned into an ugly duckling passing for a dumb noiseless mocking bird perched in George St.

  5. Austere methods on small economies Do not help . Especially an economy like Barbados which does not have mass productive manufacturing industries or other resources to sustain an economy. the pseudo economist who are harping about the downgrade must asked themselves the relevant question .having high unemployment which would trigger unbearable burden on a society overloading the social network are the answers to having an upgrad. in an approach to bringing down the deficit furthermore there is no proof that those measures work. but one can look at other countries that have tried such measures and conclude NO.! No those countries have not recovered i and their deficits were not lowered .. Furthermore it unleashed unbearable pain on its citizenry which were harsh and unrealistic and govts had to address increase social needs fueled by higher unemployment which only added to the deficit. and lowering of their credit rating a. Compounding it all people became more outraged and crime escalated ….All in All a reasonable and realistic approach is the way to go . one that does slide the economy at neck break pace into stagflation. . ..

  6. @Miller

    Both political parties have failed to transform to the current landscape. For example the MoF referred to 200 million which is owed to the NIS going back 30 years. There you have it.

    A question to the MoF: what % of the debtors are still in business?

  7. in my above comment the last paragraph should read’ All in all a reasonable and realistic approach is the way to go ,one that does NOT slide the economy at neck break pace into stagflation……………

  8. millertheanunnaki

    @ David | July 19, 2013 at 11:42 AM

    Would never argue to the one-sided contrary. That’s a fact etched immortally in the fickle memory of gullible Bajans.

    What is of concern are those haughtily self important people with a private sector perspective of economy, efficiency and effectiveness who berate the state of managerial performance and the pervasive incompetence existing in public sector agencies but who when given the opportunity to turn things around and make a difference sell their souls on the altar of serving the political devil either for knighthoods or to sit on cushy seats in the house of senatorial political prostitution.

    And I refer specifically to Tony Marshall of Port Efficiency fame while using the VOB sop box to spew his partisan venom at public sector agencies but who when given the opportunity to put his brains where his mouth was failed miserably the same test of efficiency as set by Marshall himself.

    His stint at the NIS as Chairman is nothing to be proud about to deserve his perceived elevation to higher “Independent “service.
    A classic case of the political version of the Peter Principle at work.

    We are still awaiting those long promised NIS financials. How can we make such far reaching investment decisions like the Almond purchase and refurbishment in the absence of reliable up-to-date financial information in today’s world of nanosecond computing?

  9. millertheanunnaki

    @ David | July 19, 2013 at 11:42 AM |
    “…For example the MoF referred to 200 million which is owed to the NIS going back 30 years. There you have it.
    A question to the MoF: what % of the debtors are still in business?”

    A very good observation even if innocently mentioned without possibly appreciating the gravamen of its impact on the long-term viability of that scheme.
    How much of that $200 million is realistically collectible especially in these harsh economic times?
    Is the $200 million included as accumulated income and forms part of the tenuous surplus of the various funds?

    Is there a reasonably estimated provision for doubtful and bad debts to offset the impact on the reported surplus of such sheer inefficient debt management?

    You see how important these financials are?
    Who will bell the cat? Dr J R?

  10. ac…………Detroit has nothing to do with the world-wide recession, the caribbean or barbados…….ask any european or North American tourist who visited detroit over 30 years ago and they will tell you that it was in the same said condition back then as it is now……the problem in Detroit is totally internal, you will have to google that information, i really don’t have the time or patience. AGAIN, DETROIT HAS NOTHING TO DO WITH BARBADOS, THEY ARE TWO DISTINCTLY DIFFERENT PROBLEMS………….just in case the DLP believe they can run that lie on the taxpayers and make it stick.

  11. ac…………By the way, if Barbados has had the current problems for the last 30 years, it only compounds what we have all been saying on BU for however long, since i just arrived, that both parties DLP and BLP are totally and irrevocably useless.

  12. well! Well! point to me where I stated that the problems of Detroit. has something to do with the carribbean or the world wide recession

  13. i would not even bother to answer that, you need to re-read what you wrote, i am busy on another blog.

  14. @ Well Welll
    Bitch u can’t/////////////////////////////////

  15. This will give some incites into what transpired in Detroit decades ago.

    http://www.nydailynews.com/news/national/detroit-named-miserable-city-gallery-1.1270677

  16. Tell that to the IMF when they come knocking.

  17. millertheanunnaki

    @ ac | July 19, 2013 at 1:42 PM |

    So if you are not juxtaposing the state of the local economy with that of Detroit to draw an analogy to justify your apologetic stance for this DLP administration’s failure then who or what is responsible for the recent rating of Junk Bond Status But with a Stable Outlook to one of Junk Bond with a definitely Negative Outlook with the stark possibility of being rated bankrupt and not to be touched with even a barge pole?

    You are going to blame OSA or your new found whipping girl Mia?

    Why not do what Stinkliar did last time and dismiss the rating agencies as nuisances and humbugs for not knowing the real state of our buoyant dynamic growing economy firing on not all (sugar dead) but three cylinders?
    Oh, you could also follow CCC’s support for the Governor’s good cussing of the IMF Chief.

    BTW, CCC where art thou? In the constituency council office hiding behind the ‘free access’ computer looking to find countries with negative Outlooks even if not junk bond status?

  18. Miller……….they can’t undo this one, this quicksand is high quality quicksand, down you go.

  19. miller there are patterns and mitigating factors which are parallel to the Detroit story govt heavily reliance on one sector to keep an economy sustainable . Govts failure to put long term and sustainable measures and policies in place in the event that sector crashed . Govt taking it for granted that the one or two sectors that is sustaining the economy can last for ever, indeed in the Detroit case that are other factors however it has a basic lesson that all govts would be wise to learn from. PS nothing to do with global recession but with govt efficiency and goals that would have been the foundation for forming and maintaining an economy long term. Again I must reiterated that Barbados finds itself on a similar path the good side is we caught it in the neck of time, Hopefully when it is all over that the lessons learned would never be repeated again.

  20. miller you and other yardflows are suffering the effects of Downgrade trauma” Other countries have met a similar fate and have survived, So will Barbados. I however advice u and all the other jubilant yardfowls seek physchological help before this latest downgrade cause undue pressure catapulting your diseased obsessed and rabid brain into mental hysteria.

  21. Detroit, MI (USA) on 07/18/2013 filed for Chapter 9 Bankruptcy protection. Alike Barbados, problems in Detroit are accumulative of several decades. Detroit at moment is ill, extremely; it’s position is precarious as was the City of New York (New York) and Cleveland (Ohio) in the 1970’s. Those cities, New York and Cleveland have fully recovered. Detroit also will recover.

    Had it not been for the Governor, Rick Snyder, Detroit would have already drowned. The governor, saw afar the condition of Detroit, knew it needed help. The governor with authority of law legislature law stepped down into Detroit, took away powers of their elected officials who didn’t know what in the hell they were doing. The now ruling party (DLP) in Barbados seemingly don’t know what in the hell they are doing, neither did the BLP.

  22. Our negative outlook is much more related to an apparently ingrained condition of idiocy than it is to any external financial, social, physical or other challenges.
    This place has endured nothing but blessings and good luck over the past 30 years.
    …unlike neighbors who suffered repeated and vicious hurricanes, internal racial conflict, devaluations and other crises, our worse events have been a house falling into a cave – and Cubana.

    Despite this unquestioned blessing (from BBE who have a special interests in the place :) ) we have managed to wrangle ourselves into massive debt, unsustainable borrowing, selling of the family silver and generally disgracing our proud ancestors.

    WHAT THE HELL !!

    Even now our problems are trivial by any serious analysis….. Basically we are spending more than we are earning.
    ….and we are spending this excess buying tons and tons of shite things that are COMPLETELY unnecessary….
    …lots of PRIDE driven exotic foods that are actually destroying our health
    ….lots of ridiculous vehicles that are BAD for our small ecology, BAD for our health and BAD for our finances (especially fuel)….but which are fueled by FALSE PRIDE..

    How much COMMON SENSE does it take to reverse that shite? How much balls does someone need to be able to do something sensible about our bad habits?

    The truth is that we will continue to have the Millers and the ac’s among us continue like children with their petty party driven shite-talk while we all go down the river bobbing in the waves like the brass bowls that we so obviously are….

    Some countries have failed because they met tough times
    Some because they had bad breaks from nature
    Some are shattered because the devil’s agents (USA) decided to bomb them back into the dark ages
    Some because they did not have the intellectual capacity to succeed

    WE ARE FAILING BECAUSE WE ARE A COLLECTION OF BRASS BOWL IDIOTS WHO HAVE DEDICATED OUR VERY EXISTENCE TO FOLLOWING THOSE OTHER LEGITIMATE FAILURES….. Rather than seek to understand the true meaning and purpose of life and living, and thus what constitutes TRUE success.

    If you don’t know or care where you are going then you tend to follow the sheep ahead of you…

  23. millertheanunnaki

    @ ac | July 19, 2013 at 3:01 PM |
    “Again I must reiterated that Barbados finds itself on a similar path the good side is we caught it in the neck of time, Hopefully when it is all over that the lessons learned would never be repeated again.”

    We the people heard the same hot air emitted from the DLP peddlers of bravado in January 2008 and again In February 2013.
    What’s new pussycat, in the bull shit sieve?
    We are still hearing it even up to yesterday. What’s wrong with the PM? What took place yesterday was the responsibility of the leader (with his two lieutenant-majors at his side for back up and support) who should be the chief spokesman and communicator of this seriously challenged administration to the Nation? What has become of the politically relevant phrase “Primus inter Pares? Was the PM having a high glycaemic index day sleeping on the job?

    Problem here, my sweet loyal apologist friend, is that the proof of the pudding is in the eating. The only agent that can cure this DLP plagued Implementation Deficit Disorder condition is Dr. IMF. Your next appointment is due December 2013.

  24. Look……that is what i am trying to impart on people who don’t have the ability to understand simple equations. Detroit was systematically destroyed over several decades, while bajans were being spoiled rotten into believing a facade, now the delusions have turned into stark reality and the dream masters are unable to fix the reality……….bajans have not known what true suffering is for many years and if their ‘educated’ leaders don’t get their heads out of their own collective asses, they will very shortly learn what their foreparents suffered so many decades ago.

  25. Look…………by the way, after over 30 years of destruction Detroit will certainly rise again in the future, there are actually highly intelligent people who will be charged with rebuilding the city, we can check in another 20 years if we are around.

  26. millertheanunnaki

    @ Well Well. | July 19, 2013 at 3:45 PM |

    Bajans had their economic heyday in Bim in the late 90’s up to 2009/10 the same way ‘black’ Detroit had its halcyon days when Tamla Motown ruled the Black Music roost all over the world.

    Black Bajans are about to enter the same phase black Detroit went through from 2007.
    It’s just a matter of time before similarities can be drawn between what bankrupt Detroit will be going through from yesterday to what Bajans can be expected to go through from 2014/15.

    Only those born before Hurricane Janet can relate to what is before us.

  27. miller u would be waiting a long time…….

  28. Miller i agree………….Detroit residents have been experiencing homelessness and soup kitchens for more years than they can remember, the city looks like parts of the bombed out middle east without a warring conflict, just well coordinated urban warfare in the form of withholding of vitally needed social services, business and urban renewal strategies.

    These leaders in Bim better rethink their strategies and rethink it quickly.

  29. Detroit, even in its current condition is still breathing and not on a life support machine. Detroit is ill, its illness unlike Barbados is not terminal. Detroit is home to the American Auto Industry (General Motors, Ford & Chrysler). Detroit hosts an annual North American Auto Show that lures visitors from all over the world; where else would it be but Detroit? The auto industry is vital and must be preserved. So, Detroit matters. It is ill, extremely but won’t die and or be buried. The Michigan Emergency Manager Legislature saved Detroit from elected officials who didn’t know what to do and didn’t know what in the hell they were doing. Who/what will save Barbados?

  30. millertheanunnaki

    @ ac | July 19, 2013 at 4:06 PM |
    “miller u would be waiting a long time…”

    But ac, why do you speak with a bifurcated tongue in true serpentine fashion?
    Are you the same ac that was up and down this blog only a few months ago deprecating OSA and the BLP 14 years of misrule that did more damage to the Barbadian economy than a combination of impacts caused by hurricanes Gilbert, Ivan, Katrina, Sandy, 9/11 and the 2008 banking failures could have inflicted?

    Are you the same ac who argued consistently that if not for the wise, timely and competent intervention of the DLP Barbados would be in a state today much worse than Greece, Spain, Detroit and Syria (and even Jamaica) combined in one little 166 sq. miles of an economic hellhole?

  31. millertheanunnaki

    @ David | July 19, 2013 at 11:42 AM |
    “Both political parties have failed to transform to the current landscape. For example the MoF referred to 200 million which is owed to the NIS going back 30 years. There you have it.
    A question to the MoF: what % of the debtors are still in business?”

    Sorry, David, for harping on the above concern you raised about the debt due to the NIS.
    I still can’t get my head around this debt. How could have the NIS recognized something as “Income” when it was never received?
    How long was the NIS using the Accrual system of Public Accounting and bookkeeping, from 30 years ago?
    Let us assume that the Accrual system was being used over the years and putting aside the accrued interest and penalties on what basis was the original portion of these debts recognize as income?
    Does the Act and the rules of the various Funds allow for such recognition of income before receipt?

    The mere fact that the MoF is seeking permission for these “old” debts to be written off as a lump sum now implies that there never was a provision for doubtful or bad debts as required under the Accrual system.

    Who are these phantom debtors that owe the NIS an accumulated $200 million and are they made up of some of the same people Sir Frank Alleyne recently confirmed do not pay either Income Tax or make contributions to NIS?

    Until the management via the “enlightened” Chair of the NIS shed some light on this $200 million we should take it all as another large dropping of bullshit to cover up something more financially sinister like contributions received (primarily in cash and receipts issued) but cannot be matched up by any actual deposits as recorded in the bank account in the ledgers or appearing on the bank statement. In other words, downright thieving by cashiers and their in-house collaborators.

    Imagine writing off $200 million in the absence of reliable financials going back over 10 years!

    Over to you Dr. Justin Robinson, prove the miller wrong by setting the record straight and I would humbly apologize.

  32. Harlequin owes “about $80,000” to the National Insurance Scheme and “in excess of $3 million” to Barbados-based businesses and contractors, according to the Nation report..

  33. millertheanunnaki

    @ ac | July 20, 2013 at 7:29 AM |

    Very good reason why the Authorities MUST move swiftly to levy on the properties and hold the local directors (if any) and principals personally liable for these debts.
    What about PAYE income tax to the Inland Revenue?

    Government needs to move quickly to take over the Merricks property before the UK sharks get their hands on it.
    Let us see how competent and seriously proactive your administration is.

    BTW, ac, do you know how much does CLICO owe to the NIS, Inland Revenue and Land Tax Department?

  34. miller I don’t know but what I do know that their is a statue of Limitations for recovery it is a three year period for filing such claims and in Clico case they maybe protected by law if they owed such monies .unless govt had filed within the statutory period.
    here is an example of one such case

    http://www.lawcourts.gov.bb/lawlibrary/events.asp?id=881

  35. Gabriel Tackle

    I am told by a source considered reliable that an accountant at a south coast hotel ran off to NY leaving the company short of funds.The management used the opportunity to steal more money from the hotel and then called in the external auditors,blamed the losses on the accountant and wrote of a cool $300,000.00 on the books.
    I am also informed,again reliably,that a big able Dem owes NIS from way back in the 80’s,is now on his 32nd company in the food business and living like a king off the fatted calf.He is known to the NIS but they won’t go after him.One of his partners is an interred peer of the realm!

  36. Alvin Cummins

    @Miller
    Do you remember an entity named the Barbados Development Bank? What happened to the debtors and their debts before it was declared defunct? @Well Well, why are you and others so fearful of the IMF; the International Monetary Rund? Countries (including Barbados) contribute to this fund so that it is there as a measure (bank) of last resort. The IMF cannot unilaterally impose anything on a country. The country that needs funds negotiates the terms and conditions under which the loan from the “bank” is going to be obtained and wither agrees to the terms and conditions or it does not. Barbados proved this when it refused to accept the terms and conditions that the IMF wanted t oimpose in 1991, and imposed its own home grown solution to the problem; even though OSA came afterward and introduced some of the same conditions. There is no need to fear the IMF, they can’t just come in they must be invited in. Bank of Nova Scotia or any other bank cannot, nor will they just impose a loan for you you have to go inside their doors first. So don’t look for an IMF imposed condition for our fiscal difficulties at the moment. I have to also constantly remind the “chicken littles” that the United States was downgraded and are still in that downgraded status.

  37. More corruption enabled by the DLP…….of course they would be well aware of statute of limitations on filing to collect INS owed funds, all 22 lawyers sitting in parliament. I am suspicious however, since there is someone i know that after years the INS still went after them and they are presently in court……more lies and cover ups by DLP for their friends. They can no longer lie or cover up the approaching downgrade (bankruptcy) that is one breath away or the IMF forced devaluation that is two breaths away……

  38. pieceuhderockyeahright

    And therein lies the predicament.

    Posturers on both sides incapable of leading and a population of sheep, blindly following the incompetents down a path of inefficiency spendthriftness and total lack of direction

  39. Alvin……….I am not fearful of the IMF in any form, they do not affect me………..i am fearful of the lies being told by the present administration to the taxpayers. Countries like Jamaica and Guyana will tell you why after so many years they cannot get out of IMF clutches, we currently have incompetent leaders in Bim who are no match for the guys and gals at IMF, they are are ones who should be very afraid.

  40. Alvin….this is no longer about a downgrade, it is now in the realm of a country about to being declared bankrupt……there is a stark difference, i don’t believe, and correct me if i am wrong, that BLP had carried the country as far as to a negative outlook bordering on bankruptcy.

  41. It’s Carson I want to see on here but he is such a cowardly wimp, tell lies and run is his motto and when the truth shows up he is scarce for days on end, a real fine yardfowl.

  42. A definition of MONEY – MONEY is a non-tradeable, non-consumable, usable, measurable, socio-psychologically reactable to, physical commodity – and the ONLY one of its kind in the world – that carries denominations for purposes of its users paying for its uses out of their own incomes, payments, and transfers – The People’s Democratic Congress.

    The fact that Barbados has gone into its sixth consecutive year of political economic depression, means that these very intellectually and politically backward BLP and DLP factions have failed miserably to study money and what ought to be its fundamental uses in Barbados; have substantially failed to dissect the Westernist anti or de-developmentalist roles and functions of monetary and financial institutions in Barbados and what are their ideological philosophical frameworkings and policies in the context of such Westernist anti or de-developmentalist operations and schemes; and have seriously failed also to prevent on multifarious occasions great and raging inundations of the very destructive effects of many of their policies on the well-being and welfare of the broad masses and middle classes of people of Barbados.

    Given those and other fundamental facts it must seen by multitudes of Barbadians that the DLP and BLP have long been and are totally absolutely unfit to manage the affairs of this country, AND ON THOSE BASES MUST THEREFORE BE PERMANENTLY TOTALLY REMOVED within the next 5 years by the very progressive and politically conscious and active of the broad masses and middle classes of Barbados from the governmental political landscape of this country, and be replaced by a group of country men and women that are very disciplined, patriotic, visionary, progressive, coalition building, people-centered and developmentalist in their sub/national social political financial outlooks and actions.

    PDC

  43. I wonder if this would ever happen in Barbados.

    Greece’s former finance minister should be prosecuted, lawmakers say
    By Elinda Labropoulou and Laura Smith-Spark, CNN updated 10:54 PM EDT, Tue July 16, 2013

    http://us.cnn.com/2013/07/16/world/europe/greece-minister-prosecution/?iref=obinsite

  44. Piece………I won’t hold my breath, suffice it to say the local leaders have the likes of Maloney and his backers et al, up in their faces, unfortunately the taxpayers will also pay a price for their little schemes and scams……..that is what happens when they neglect to show even a little bit of morals in their subhuman souls, no integrity legislation, no freedom of information act, lies, secrets and criminality at large. The taxpayers will ultimately get the last laugh in the not too distant future.

  45. The S&P stayed the credit rating it assigned Barbados last year but revised its economic outlook, moves it from stable to negative. next time around they will ax them down another grade. Rihanna isn’t working hard enough to lure in tourists.

  46. LA saves billion of dollars by retiring diesel buses for natural gas ,,interesting article a must read
    http://anga.us/blog/2013/5/16/cleaner-transportation-powered-with-natural-gas

  47. The United States Housing Market is booming – AGAIN. A large part of the American Auto Industry is still owned by the government due to bail out (2008) but has fully recovered. More and more people in the United States are buying American Cars. The Ford F-150 (truck) according to USA Today (June 2013) is the #1 best seller.

    As of right now, the United States has more oil than thought, can export rather than import. Texas, Alaska California, New Mexico, Oklahoma and Louisiana are oil rich states. The United States, though has much more oil than thought in North Dakota, South Dakota and Montana. The S&P in June of this year revised its outlook on the United States, moved it from negative to positive.

    No country right now is in the best of health, corruption is in every place and everywhere but damn Barbados is off the hook.

  48. Massive land theft down there (Barbados) is mind blowing. It’s just mind blowing.

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