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 Comments on “Barbados’ Outlook to Negative From Stable by S&P”

  1. millertheanunnaki July 19, 2013 at 4:05 PM #

    @ 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.

    Like

  2. ac July 19, 2013 at 4:06 PM #

    miller u would be waiting a long time…….

    Like

  3. Well Well. July 19, 2013 at 4:10 PM #

    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.

    Like

  4. LOOK July 19, 2013 at 4:20 PM #

    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?

    Like

  5. millertheanunnaki July 19, 2013 at 8:29 PM #

    @ 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?

    Like

  6. millertheanunnaki July 20, 2013 at 6:46 AM #

    @ 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.

    Like

  7. ac July 20, 2013 at 7:29 AM #

    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..

    Like

  8. millertheanunnaki July 20, 2013 at 7:40 AM #

    @ 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?

    Like

  9. ac July 20, 2013 at 8:50 AM #

    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

    Like

  10. Gabriel Tackle July 20, 2013 at 9:02 AM #

    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!

    Like

  11. Alvin Cummins July 20, 2013 at 9:37 AM #

    @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.

    Like

  12. Well Well. July 20, 2013 at 9:39 AM #

    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……

    Like

  13. pieceuhderockyeahright July 20, 2013 at 9:40 AM #

    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

    Like

  14. Well Well. July 20, 2013 at 9:41 AM #

    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.

    Like

  15. Well Well. July 20, 2013 at 9:46 AM #

    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.

    Like

  16. Well Well. July 20, 2013 at 10:22 AM #

    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.

    Like

  17. The People's Democratic Congress July 21, 2013 at 7:51 AM #

    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

    Like

  18. pieceuhderockyeahright!!! July 22, 2013 at 11:03 AM #

    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

    Like

  19. Well Well. July 22, 2013 at 11:24 AM #

    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.

    Like

  20. LOOK July 22, 2013 at 7:18 PM #

    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.

    Like

  21. ac July 23, 2013 at 8:34 AM #

    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

    Like

  22. LOOK July 23, 2013 at 12:40 PM #

    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.

    Like

  23. LOOK July 23, 2013 at 12:46 PM #

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

    Like

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