A logo sits on a glass panel inside the Kongress Zentrum, also known as Congress Center, the venue of the World Economic Forum (WEF) in Davos, Switzerland, on Monday, Jan. 19, 2015. This week World leaders, influential executives, bankers and policy makers will attend the 45th annual meeting of the World Economic Forum in Davos that runs from Jan. 21-24. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

World Economic Forum Removes Barbados from Latest Global Competitiveness Rankings

Chris Sinckler, Minister of FinanceAfter seven years in office Minister of Finance Chris Sinckler indicated today that Barbadians have to brace for more bitter economic medicine.  His foreboding message comes against the removal of Barbados from the World Economic Forum latest report.

[…]

In a move that should raise questions about access to economic data on Barbados, the World Economic Forum’s Global Competitiveness Index for 2015-16 has declined to offer a ranking for the country, citing a lack of information.

This year the report covers 140 economies, but not this country.  According to the editors, “In this edition, because of absence of data, we could not include Angola, Barbados, Burkina Faso, Libya, Puerto Rico, Suriname, Timor-Leste, or Yemen.”

Barbadians may be surprised to see their country’s name linked to such countries with regard to economic matters – The Broad Street Journal.

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56 Comments on “World Economic Forum Removes Barbados from Latest Global Competitiveness Rankings”

  1. TheObserve September 30, 2015 at 6:18 PM #

    A man is known by the company he keeps. The poorest and failed states.

    Like

  2. Violet C Beckles September 30, 2015 at 6:18 PM #

    CROOKS , LIARS AND SCUMBAGS CROOKS FOR LIFE ,TIME TO VOTE THEM OUT , FREE-SMART OF INFORMATION AND THEY CAN KEEP THEIR FREEDUMB. We hope by now Bajan can see the Massive Land Fraud , Banking Fraud, Lawyer Fraud, Minister Fraud, Laundering drugs and guns More Much More PAIN to come ,Until NEW,Elections,

    Like

  3. MR.C September 30, 2015 at 6:46 PM #

    I am doing my best to remember ever seeing a picture of The Minister Of Finance Chris Sinckler EVER WITHOUT A SMILE. It seems that from his facial expressions, everything on his part is peaches & cream.
    This has surpassed sad seeing Barbados being removed completely from the World Ratings when it was BEATING Countries that were bigger and had more capital, or so it might seem. Being ahead of Trinidad & Tobago and Jamaica shows that Barbados was small, but a force to be reckoned with. But the constant BULL SHIT POLOCIES of The Government doing what seem to be GAMBLING with SURE, FOR UNSURE. I HAVE ALWAYS HEARD THAT A BIRD IN THE HAND IS WORTH TWO IN THE BUSH. Mr Sinckler it seem that none of this bothers you,or the others who was suppose to be having the people’s best interest at heart? YOU sir have made some sorry investments over the years that I have read about. And continuing to do so with that bull shit grin on your face… Because in my mind whatever happens, all, or most of you are going to come out smelling like a rose regardless. This kind of dirty, underhand dealings should be addressed where heads would roll, and some of you do time. But with this difference:- All Government heads who made the choices that has the country in this situation should PAY for your own room and board IN THE PRISON. Because the taxpayers has given you too much already. Plus cut your pensions off when you do get out of PRISON. This kind of doing business MUST STOP, AND THE TAXPAYERS SHOULDN’T HAVE TO PAY YOU SHIT. You took what you wanted and NEVER gave them any thought. Now you should have to pay for all that you have done to them.
    If some drastic measures aren’t taken with this kind of DIRTY DEALINGS. Barbados, and the people of Barbados are going to be facing some serious hardships for quite sometime to come. TIME TO DO MORE THAN HOPING AND PRAYING, AND SIDE SHOW CONVERSATIONS. My mother had a old saying:-” WHILE THE GRASS IS GROWING,THE HORSE IS STARVING;” So all during this time that Barbadians are looking and waiting for a way out of this SHIT HOLE that the Goverment has placed them in. Many are going to suffer.

    Like

  4. pieceuhderockyeahright September 30, 2015 at 6:47 PM #

    This is what the ole man has been telling AC and company about her administration which comprises such Dufuses and waste foops

    These are the signs that we are pretty much a failed state and that the doors of access to any meaningful program funding or external inputs and support for our economy are fast closing.

    The car drifting all ovah de highway and the drivers refuse to relinquish the wheel

    This is the single worst government this cvntry has ever had.

    I octogenarian with the calcified brains appeal to you fellows do the honourable thing before someone does it for you…Mark de ole man words

    Like

  5. David September 30, 2015 at 7:01 PM #

    Barbadians are suffering from economic, mental and other forms of fatigue. After so many years and there is seemingly no light at the end of the tunnel.

    On a positive note:

    http://www.centralbank.org.bb/billion-dollar-dreams

    Like

  6. David September 30, 2015 at 7:33 PM #

    How is central bank able to afford such rich rates?

    CBB Rates

    CBB Rates

    Like

  7. pieceuhderockyeahright September 30, 2015 at 7:49 PM #

    @ David de Blogmaster

    I ent no economist but you see dem maturity dates is in 2025 and 2035 dem is at de end of de BLP or next party term an midway into the 3rd party term if de cuntry ten year swing holds true

    In short a nex guvment gine gots to pay. Not dese lot

    Plussing dem got to find de money fuh salaries fuh de nex three munts

    But you play dat you ent know dese tings but den you posting de bond notices, you real smart doah

    Like

  8. Hants September 30, 2015 at 8:02 PM #

    pieceuhderockyeahright ,

    That is called gambling. They are hoping for a worldwide economic boom.

    Like

  9. David September 30, 2015 at 8:19 PM #

    @PUDRYR

    The point to note is that banks are paying 1% and less on savings and time deposits. Why is the central bank paying so high a rate on government securities.

    Like

  10. Due Diligence September 30, 2015 at 8:34 PM #

    10 year Government of Canada bond yield = 2.25%

    Like

  11. millertheanunnaki September 30, 2015 at 8:53 PM #

    Both the MoF and the Guv of the CBB have been for some time ‘doctoring’ the national economic and financial data reported to international monetary and rating agencies to make Barbados look in a favourable light in order to mask the reality of the underlying economic rot.

    The IMF blew the whistle and called the ‘blind lying’ game over.

    The chickens have finally come home to roost. Stinkliar’s Pinocchio nose is broken and the quack doctor Worrell’s caduceus has gone missing somewhere on the Church Village Green.
    Let us now see if the current administration’s “No ‘More’ layoffs, No Privatization over Fumble’s cold blooded body” will continue to be as vainglorious as the DLP’s manifesto boast of making Barbados into a country that is: “socially balanced, economically viable, environmentally sound and characterized by good governance.”

    But there is hope in King Fumble’s plan to leave his mark clearly imprinted on history’s final page of Barbados halcyon days. The same way Jamaica is about to get a prison as full and final settlement of Reparations for slavery so too can Barbados ‘demand’ Republic status by ditching the remaining piece of the broken trident into the Oistins Bay. Bajans are a proud people and have always paddle its own financial canoe since 1652.
    All Hail, Pres. Fumble from the Royal House of Stuart. You have finally brought full independence to Barbados even though she is on her way to the poor house.

    Like

  12. Bush Tea September 30, 2015 at 9:06 PM #

    @ David
    How is central bank able to afford such rich rates?
    +++++++++++++++++++++++++++++++++++++++++
    Two reasons…
    1 – If you have no plans to repay you can afford to offer 20%….shiite den – 30%…
    2 – A promise is a comfort to a brass bowl…

    ALSO…
    Why would the World Economic Forum list Barbados?
    ….don’t they list Trickidad?
    Wuh Brassbados belongs to Trickidad.

    Wunna think that sLIME and fLOW does get TWO listings nowadays…?
    One belongs to the other Boss…🙂

    Like

  13. Pat September 30, 2015 at 9:25 PM #

    Offering those rates for the bonds is equivalent to Clare Cowan paying 17% for a second mortgage when the banks charging 3% for a first and about 6% for a second. Canada Savings Bonds are at 2.25%, but Worrell when he was here was selling Barbados saving bonds at %5. The answer is desperation. Clare needed the money badly and the Government of Barbados is broke an needs it more, so the high interest rates.

    Like

  14. Prodigal Son September 30, 2015 at 9:29 PM #

    @ millertheanunnaki September 30, 2015 at 8:53 PM #

    Both the MoF and the Guv of the CBB have been for some time ‘doctoring’ the national economic and financial data reported to international monetary and rating agencies to make Barbados look in a favourable light in order to mask the reality of the underlying economic rot.

    The IMF blew the whistle and called the ‘blind lying’ game over.
    …………………………………….

    For real, miller………the chickens have finally come home to roost.

    We warned the dems here on BU that those of us who could understand economic reports ………that the figures were being manipulated to show growth that could never materialise given what was happening on in the real world of Barbados. Even David Estwick warned his own party that they are responsible for the mess this country is in!

    But the DLP government would not take any advice…..we are doom and gloomers. They now wait until the people from outside unmasked their naked behinds to wake up. Poor Donville was struggling this week to explain away Barbados being very tardy to get a business registered.

    Well, I am sorry for my country but what can we do but try to hold on and stick it out.

    September 30 has come and is going and I am still to get my tax refunds. I guess I can kiss getting them back goodbye if the economy is in really bad shape.

    Like

  15. Prodigal Son September 30, 2015 at 9:40 PM #

    My bank told me today that they are paying .5% on term deposits and only 1% on Platinum Savings.

    I lived to see the day when this PM we have said that he had a list of persons who went after the high rates paid by CLICO and that they were greedy.

    So if these high rates are to lure people to invest while the banks are only offering 1% or .5%………..does this make the Bajan Canadians or locals greedy?

    Just like the investors in CLICO lost out, so too is there potential risk in these bonds and debentures offers by the government.

    These morons do not care as they do not have to worry about repaying the money when they mature……………….they would long have been vanquished from the political lives of Barbadians. I am prepared to live with 1%…..my money will always be there for me!

    Like

  16. David September 30, 2015 at 10:02 PM #

    Here is what the IMF had to say in 2013:

    “Under a new interest rate policy framework in place since April, the Central Bank of Barbados (CBB) has increased its holdings of Treasury bills in 2013, resulting in a decline in short-term yields. Direct financing of the government, which is exacerbating pressures on the balance of payments, should be reversed and short-term interest rates allowed to rise to levels more consistent with safeguarding the exchange rate anchor. This would demonstrate that monetary policy is supportive of the currency peg.

    https://www.imf.org/external/np/sec/pr/2013/pr13506.htm

    Like

  17. Dompey October 1, 2015 at 3:51 AM #

    Mr. C

    We all should be troubled by what is going on in Barbados these days because lets face it, many of us still have family and friends living on the island, coupled with the fact that we wish to see our country regain its economic footing once more.
    And though you may thinking that the policies of the Stuart Administration have exascerbated the situation further, coupled with allegations of corruption and the gross self-interest of its members, the fact remains that the government has actively sought solutions to address the current economic vicissitudes on the island.

    And might it with truth be said that the results will not occure overnight because as you have stated above: while the grass in growing the horse is starrving.

    The policies of the Obama Administration took a good six years before the American people saw any improvement in they living circumstances, and even still today the country isn’t where it ought to be.

    Now it may well be argued that some here may have or know of others who may have had better ideas, solutions and suggestions regarding the manner in which the affairs of our country ought to be governed, but any good economic advisor would tell you that is not only based upon WHAT ONE KNOWS OR DOES NOT KNOW, BUT UPON WHAT ONE HOPES AND WILL ATTEMPT, TO ACHIEVED A CERTAIN END.

    So lets us give the government some credit for taking the initiative in its determination to address this crisis whether we like what it is doing or not.

    Like

  18. Crusoe October 1, 2015 at 4:33 AM #

    So, Volkswagen erred in disclosing about emissions. Actions therewith which caused no accidents and death, no?

    USA republican Government erred in disclosing about ‘weapons of mass destruction’, actions therewith which has caused not only the fall of Iraq, but the complete chaos in the Middle East.

    Who’s zooming who?

    Like

  19. Crusoe October 1, 2015 at 4:35 AM #

    The older I get, the more cynical I get. Oh Lord, come for this world, one of your many.

    Like

  20. Dompey October 1, 2015 at 5:31 AM #

    Crusoe

    You got is wrong brother the Republican Government did erred in disclosing about weapons of mass destruction. The former Secretary of State Colin Powel on the prompting from President George W. Bush, straight out lied to the United Nations regarding the weapons of mass destruction under the presense to eliminated that regime from the face of the earth because of prior threats made by its former leader to his father.

    Like

  21. balance October 1, 2015 at 6:11 AM #

    “Dompey October 1, 2015 at 5:31 AM #

    Crusoe

    You got is wrong brother the Republican Government did erred in disclosing about weapons of mass destruction. The former Secretary of State Colin Powel on the prompting from President George W. Bush, straight out lied to the United Nations regarding the weapons of mass destruction under the presense to eliminated that regime from the face of the earth because of prior threats made by its former leader to his father.”

    President Clinton was the first President that declared war on weapons of mass destruction in Iraq. Foolbert Bush as most seem to think he is escalated the war.

    Like

  22. ac October 1, 2015 at 6:19 AM #

    This continual process bof doom and gloom to always bring into focus any negativity that can be applied to this govt has all but become worn out and tired,
    It was only a few months ago even within the spectrum pf gloom and doom which the opposer still use as the most effective and efficient way to highlight the problems of this nation, that the people of barbados thought it best to overlook such presumptuous rhetoric and to buy a substantial amount of govt bonds a sure sign that many in this society believes and have confidence in the govt efforts to restore stability,
    this report may have point to a fundamental weakness in some govt entities but it is not of a sufficient importance that all necessary measures or steps cannot be implemented for proper corrections,
    This ongoing malaise to bite at every bait or bad news for barbados comes with a puerile consequences which only serves to hurt this little island,

    Like

  23. de Ingrunt Word October 1, 2015 at 6:44 AM #

    @David, this is a very depressing story, Going back to your comments recently on investigative journalism it is unfathomable that the regular media could run this story without extensive quotes from the Min Sinckler, the Cen Bank Gov, Head of he Economic Society and a host other senior policy planners.

    As a haven for international business operations and with our PM and CB Gov out and about singing praises to ex-pats of gilt edged backed government paper how can we allow ourselves to be called out as obfuscating our economic data.

    Barbados and Yemen or Burkina Faso mentioned in the same ethical economic context. Being called to the carpet with Timor and the failed country Surniname. Wow.

    There is no secret why Puerto Rico can’t report their economic details legitimately: they basically didn’t know their asses from their elbows in the last few years. Their economic house was so dysfunctional that they were begging the US central government to change the statutory rules to allow them to file bankruptcy to stave off bond holders.

    What is Barbados’ hiding or can’t wrap their heads around?

    This should be the biggest most embarrassing news item on the pages and air waves of every non-government media house until thoroughly explained.

    It certainly puts into very clear perspective what Walter Blackman said on these pages re the negligent and poor reporting emanating from NIS over the years. As he alluded to, the gilt edged paper now being sold may be as useful and effective – based on the unreliable reported data – as some ‘Charming 2-ply’ on a bad-curry day!

    But then again we are still receiving loans from the international market so some people seem quite comfortable with the economic data we are providing.

    Like

  24. David October 1, 2015 at 7:04 AM #

    @Dee Word

    A big problem we have in Barbados is how we mix political positions, micro and macro economics etc. The MOF was quoted elsewhere that Barbados economy must undergo structural changes, we know what this will mean. Then we have a government and Central committed to a public relations and advertising blitz to promote the features and benefits of savings bonds and other securities paying high interest rates not aligned with what the banks are paying. Bear in mind the bankers have been crying the market is wash with cash. If Barbadians, especially senior citizens, were receiving 3 and 4 % up to a year ago from banks it is easy to understand why some Barbadians would shift to bonds. We have to show the intelligence to delineate the issues.

    Like

  25. ac October 1, 2015 at 7:50 AM #

    There is no perfect economy. However the need of those who find it palable to rejoice in negative news that is associated to this economy is as depressing as those structural deficiencies that ails the country.
    For what it is worth one cannot possibly believed that these problems took footing in a span of six years. For one the Barbadian public is not so daft and can comprehend all by self without have suspected intruders to tell them what to believe

    Like

  26. Bush Tea October 1, 2015 at 8:08 AM #

    @ AC
    Do you have ANY idea of how much you sound like a jackass…?

    Liked by 1 person

  27. Artaxerxes October 1, 2015 at 8:10 AM #

    ac October 1, 2015 at 6:19 AM #

    Only an idiot and DLP yard fowl would equate people buying bonds with higher than normal interest rates, especially in an environment where interest rates on savings has been decreased and people are always looking for investment opportunities, “as a sure sign that many this society believes and have confidence in the govt efforts to restore stability.”

    The government issued bonds because they cannot raise capital on the international or local markets without an accompanying high interest rate, and one of the IMF’s stipulations is that a reliance on the NIS funds or the printed of money by the Central Bank should be discontinues.

    Any government confronted by these and other economic circumstances, such as an increasing debt to GDP and a prolonged running of a high fiscal deficit, would issue bonds to finance its operations. In reality, bonds are basically a loan from the society, which the government has an option that is not offered for loans from international and local sources (i.e. with bonds the government determines the interest rates and payback period).

    The “bad news for Barbados (that) comes with puerile consequences which only serves to hurt this little island,” occurs each time Sinckler manipulates the truth and economic data to give Barbadians a “sense of feeling good,” the IMF recognizes that there are many discrepancies in the economic statistics and government responding to those concerns by delaying in the release of the last IMF Article IV consultation report.

    It are these types of scenarios that affect investor confidence and people lack of confidence in this DLP administration’s ability to solve the island’s economic problems, not a few people on BU who, in your opinion are “preaching doom and gloom.”

    AC, you need to face reality and stop and trying to disguise the shiite you keep spewing as patriotism.

    Liked by 1 person

  28. David October 1, 2015 at 8:27 AM #

    What we need the BU intelligentsia to discuss is the down side to government entering the market with a high rate when the banking market is obviously forcing rates down.

    Like

  29. Due Diligence October 1, 2015 at 8:53 AM #

    @Pat September 30, 2015 at 9:25 PM

    Your comparison of the bonds with Clare Cowan’s 17% mortgage is spot on. Both are desperate.

    One minor error though – the Guv was selling 5 year Savings Bonds at 5.5%

    Like

  30. ac October 1, 2015 at 9:22 AM #

    Cuss ac all u want ac refuses to join a chorus line of political operatives who has not offered anything worthwhile towards progress. I have heard all the same meanderings over and over again founded on destruction. Horray guys it is time to open a new chapter and verse

    Like

  31. SITH October 1, 2015 at 9:40 AM #

    The problem borrowing is trying to solve is “spending too much money”. For Barbados borrowing is a double edged sword. The Government raises money by borrowing and then spends the borrowed money on things that mostly have to eventually be paid for in US$. That puts pressure on the FX reserves and when you have a fixed peg to the US$ you have no opportunity to raise US$ in the free market. The eventual end result of this is very predictable. Unless expenditures are cut or there are large increases in FX income, Barbados will run out of FX to pay the import bill. From the outside the investment climate in Barbados looks pretty hostile. It is going to be a long hard struggle to get the ship turned around.

    Like

  32. Walter Blackman October 1, 2015 at 10:00 AM #

    David October 1, 2015 at 8:27 AM #
    “What we need the BU intelligentsia to discuss is the down side to government entering the market with a high rate when the banking market is obviously forcing rates down.”

    David,
    If money was scarce, and the government, by offering artificially high interest rates, had muscled its way on to the local lending market and guzzled up most of the available capital (a process known as “crowding out”), then the downside would be that little funds would be left available to the private sector for consumption and investment. This would have a dampening effect on the economy.

    The local market is filled with cash, so there is no problem there.

    In a nutshell, here is the problem.
    Government is strapped for cash (broke). Like individuals, it has bills to pay, so it cannot simply sit down on its backside and throw its hands into the air. That would be reckless and irresponsible behaviour. It must find money, using all legal means available to it.

    Generally speaking, people who lend money to government do so knowing that the government, through its ability and power to tax the populace, can raise the revenue needed to repay its debt. Unfortunately, the government of Barbados has almost maxed out its borrowing capability, and the lending agencies have realized that it has very little room left to raise taxes.
    Thus, government has very few options and sources left from which to borrow……individual Barbadians living home and abroad are the remaining targets.

    Because of the risk now associated with government defaulting on its debt obligations, lenders to government would have to demand a risk premium. If ‘normal’ lending rates are at 1%, and government is offering 6%, then the government is thinking that a risk premium of 5% might be enough to lure Barbadians.
    Everything now boils down to the level of sophistication and knowledge of the individual Barbadian investor. Some individuals, knowing that there are other people waiting in line before them, who have not yet been paid, will not even accept a risk premium of 100%.

    Given the predicament the government now finds itself in, the Governor of the Central Bank and the PM of Barbados are desperately seeking to raise funds. We are watching them running from pillar to post, but in a twisted sort of way, we must still applaud them for doing something, rather than sitting and doing nothing.

    Although at the individual level, some of us have already determined that we are not going to put “one effing cent” towards the purchase of junk bonds, we must still hope that there are individuals out there, who can afford to take the risk of losing their money, who will come forward and purchase the bonds so that the wheels of government can keep on turning.

    This is a very bad situation for the government of Barbados to be in. Yet, they have to try “anything” and see if it works. We have to wish them good luck in their endeavours. Failure will bring disastrous consequences.

    Liked by 1 person

  33. Artaxerxes October 1, 2015 at 10:09 AM #

    @ ac

    Although you are a political operative, by refusing “to join a chorus line of political operatives who has not offered anything worthwhile towards progress,” you have finally come to the realization, similarly to Dr. David Estwick, that your DLP, through their economic policies, (which have been given failing grades by the Central Bank Governor, Dr. Estwick, a number of economists, international rating and lending agencies), have not been achieving the desired objectives.

    Recently, Sinckler and Stuart told the DLP faithful that the “home grown economic policies are working.” However, Sinckler, whose deeds have made his name synonymous with lying, has now told Barbadians in “nuff purty talk” that essentially the Barbados economy is not improving.

    AC, when next you attend a constituency branch meeting make sure you tell the DEMS “guys, it is time to open a new chapter and verse.”

    Like

  34. Artaxerxes October 1, 2015 at 10:12 AM #

    @ Walter

    EXACTLY!!!!!

    Like

  35. David October 1, 2015 at 10:16 AM #

    @Walter

    Well stated!

    The key is the discerning investor vs greed.

    Like

  36. Bush Tea October 1, 2015 at 11:46 AM #

    @ Walter
    Good analysis.

    However have you not left unsaid the inevitable conclusion from your posit that this is a case of ‘heads we lose’ and ‘tails we are non-winners’?

    In other words…
    If we deposit our savings with Stinkliar, we surely will not be repaid before Bizzy and Barrack… or Clare or Butch…
    HOWEVER…
    if we don’t support their desperate money grab, we will all lose anyhow … when the Barbados dollar is devalued to Bds $50 to US $1.

    The REAL obvious solution has been for there to be an across the board salary/wage reduction of 15%. However NO ONE seems to want this …because we are all looking at our own selfish financial positions.

    Bushie will always recall the selfish and unpatriotic response of Donville when asked about making such a sacrifice.
    The BLP passed that shiite law for stupid political reasons, and clearly the DLP has no appetite to see it changed….

    We are therefore left with the options of giving our savings to the joker Stinkliar to spend,… or of waiting until he manages to get those savings evaporated into nothingness through externally imposed devaluation….

    Can you give Bushie a more reasonable description for such logic than ‘brass bowlery’….🙂

    Liked by 1 person

  37. Due Diligence October 1, 2015 at 12:09 PM #

    So what happened to the offer from Andy Stewart to raise a $2 billion lifeline

    http://www.nationnews.com/nationnews/news/61145/usd2b-lifeline

    “$2b lifeline
    Geralyn Edward,
    Added 23 December 2014

    Up to US$1 billion could be raised for Barbados early next year if Government gives two British investors the green light.

    Millionaire securities expert Andrew Stewart and his business partner Stuart Fordham have already met with Minister of Finance Chris Sinckler and the Freundel Stuart administration with their proposal to secure between US$950 million to US$1 billion in a sovereign bond issue.

    Using their worldwide connections, the two said they could help mobilise the issue within the next few months as an alternative to going to the International Monetary Fund (IMF).

    “We don’t think that this country needs to go cap in hand to the IMF and the stranglehold that they will have entering some of the unpleasantness that has occurred in [other countries].”

    Wasn’t that a piece of in depth journalism?

    Like

  38. Pat October 1, 2015 at 12:26 PM #

    A downside for the local Bajans who buy the savings bonds is a default by government when they mature. If the government is smart, before they become due, they can unilaterally extend the term from five to ten years at the same rate. To change the rate would be like issuing a new bond. The TB and debentures already have lengthy terms.

    Like

  39. ac October 1, 2015 at 12:56 PM #

    What you foot soldiers failed to realise that even if what you say is true the constant bombardment and constant criticism wears thin and ineffective .This is the same course of action which was stubbornly applied leading to the last election and which failed and by all accounts giving the anemic economy leading into the past election should have been a slam dunk for the blp
    Personally I hate to rain on the blp parade but being a hunter of  wild boar you guys make for easy target

    Like

  40. ac October 1, 2015 at 1:02 PM #

    As for the bonds which I purchased I bought them out of a commitment and as a service to my country with an attitude of “doing for my country in time of need and not looking forward into a picture of doom and gloom

    Like

  41. Due Diligence October 1, 2015 at 1:23 PM #

    @Pat October 1, 2015 at 12:26 PM #

    “before they become due, they can unilaterally extend the term from five to ten years at the same rate.”

    Are you sure of that? Seems a stretch.

    My understanding is that Savings Bonds are redeemable at any time – with interest paid at a reduced rate depending on how long they are held.

    Ten year GOB TNs due in 2025 yield 6.625%

    If I buy a 5 year Saving Bond due in 2020 at 5.5%, they can unilaterally extend the term from five to ten years (to 2025) at 5.5%.

    Makes no sense at all.

    Like

  42. mitchlans October 1, 2015 at 2:50 PM #

    I wonder how many of the people who bought these bonds think they are getting 6.625% PER ANNUM over 10 years. In fact the annual return (if you get it returned!) is only .625%. Hardly kicks the banks interest rate into touch, does it?

    I am prepared to stand corrected if my maths or banking knowledge is misleading me, but I suspect the real misleading has been quite intentionally done by Govt and the Central Bank. To speak of full term interest rates as opposed to annual interest rate is highly misleading to ordinary people.

    Liked by 1 person

  43. David October 1, 2015 at 2:57 PM #

    @Mitclhlins

    The other point to ponder is that the interest is back loaded if you want to cash the bonds early.

    Like

  44. Hants October 1, 2015 at 3:07 PM #

    Doesn’t the bank issue interest payments every 6 months?

    Like

  45. Due Diligence October 1, 2015 at 3:24 PM #

    @mitchlans October 1, 2015 at 2:50 PM

    You are not correct.

    Your maths and (lack of) banking knowledge appear to be misleading you.

    The 10 year 6.625% instruments are GOB Treasury Notes.

    The Treasury Note will be issued at par with a fixed interest rate of 6.625% payable on March 31 and September 30 of each year.

    See: http://www.centralbank.org.bb/news/article/8752/issue-of-50000000-barbados-government-6625-treasury-note-2025

    Liked by 1 person

  46. Due Diligence October 1, 2015 at 3:35 PM #

    See; http://www.centralbank.org.bb/investors/treasury-notes-debentures

    “A Treasury Note or Debenture is transferable and can be sold to another individual prior to maturity, if an emergency arises where cash is needed. In such a case, the investor would take the certificate to a registered securities broker, who will execute the sale transaction on his or her behalf. Both Treasury Notes and Debentures are tradable on the Barbados Stock Exchange.”

    Could add the proviso “If you can find another investor who wants to buy it”

    Like

  47. Alvin Cummins October 1, 2015 at 3:41 PM #

    @ The Naysayers, Mr. C, and the Yard Ducks.
    :
    Elections 2008. DLP wins majority to House of Assembly. 2009 David Thompson dies. BLP calls for fresh elections so that New Prime Minister can set his own Agenda. DLP ignores this call and continues to govern. 2010 BLP expresses no confidence in the DLP government, citing lack of experience, etc. etc. Expresses absolute frustration. 2011 BLP calls for election because country is in deep doo doo. 2012 BLP expresses frustration because DLP government refuses to “listen to the people” and call election.2013 election finally called and campaigning begins. Polls indicate that DLP will not win five seats; maybe Not even One seat. Up to the night of the election certain pundits predict a BLP majority. Post election day. DLP wins election; narrow margin, but they hold the reins of power. 2014 BLP calls for fresh elections because THE COUNTRY IS STILL IN DEEP DOO DOO, and the “incompetents” still don’t know what to do!! 2015, the BLP malcontents are still calling for the government to resign and let “people who know how to run the country take over. Prime Minister Stuart still won’t pick he test.
    Prediction for 2016, the BLP; now in further disarray, as witnessed by the confusion in Christ Church West, still calls for the Government to fold up. Prime Minister Stuart still refuse to “onpick he teet”. 2016 further, Barbados celebrates sixty years of Independence, declares itself a Republic, The BLP celebrates with further infighting, Jerome Walcott replaces Dr. Maria Agard, as representative for Christ Church West, but still cannot sit in the House, because Dr, Agard shows who is boss by not resigning, Government refuses to call a Bye election, Dr.Agard, like OSA becomes an Independent, and whenever the election is called ( 2018) Jerome Walcott is defeated at the polls and Christ Church West goes to the DLP.
    Meanwhile the country continues to show growth; small perhaps, but growth still.More frustration; even desperation, shown by BLP
    Call Bushie for help.

    Like

  48. ComeHere October 1, 2015 at 3:54 PM #

    The interest could be 10%, it doesn’t matter what it is or what the terms of the bond amortization schedule is to the fools buying this ponzi paper. The problem is what can be BOUGHT with these future dollars, assuming at least partial payment is received. Nothing is the answer once there is a devalued currency. The government is currently imposing artificial inflation on an already critically wounded economy by illogical taxation, elimination of deductions, new charges for social and educational services, and the failure to pass on the windfall of falling world oil prices. The average Bajan’s discretionary income has been reduced to near zero which in effect reduces anyone’s spending power. Think of the REAL cash shortage this gov’t would be facing had oil prices INCREASED v dropping in half. Yet even with all of this “found money” from taxes, bond issues, the harsh austerity measures, and the aforementioned drop in oil prices, is Barbados better or worse than it was 7 years ago?

    @SITH correctly assesses the reality: “…Barbados will run out of FX to pay the import bill.” Barbados cannot cut expenses because that would in part be via job cuts; the gov’t cannot cut jobs because the NIS fund is full of IOUs from the gov’t, not cash, and the gov’t is out of money to repay the IOUs. A vicious circle with only one exit: The IMF WILL come in, the currency will be devalued, and then only THEN can the economy recover. Patriotic fervor aside, there is nothing else left to sell the Trinis but ourselves.

    Like

  49. Due Diligence October 1, 2015 at 4:07 PM #

    The 10 year 6.625% GOB Treasury Notes issue will remain opened until the Central Bank advises that it has been fully subscribed.

    It will be interesting to see when the whole $50,000,000 is snapped up.

    Like

  50. ac October 1, 2015 at 6:01 PM #

    Alvin cummins You are the boss Well Said !

    Like

  51. mitchlans October 1, 2015 at 6:04 PM #

    Thanks for the correction DD. I think my doubt was based on how incredible it is that anyone would be offering 6.625% interest per annum in the current financial climate, especially at a time when the bank rates are 1% or less.

    And do I not recall shouts of greed and gambling when CLICO offered its dodgy EFPAs at similar levels above bank rates? Hmmmm…..

    So just to clarify, the investor in these GOB instruments will indeed receive 6.625% of his/her total investment every year split into two payments every March and September? And then (hopefully) their principal in year 10.

    Like

  52. ac October 1, 2015 at 6:21 PM #

    bush shite no matter how foolish i sound i roll my own thunder and it is the loud sound that makes idiots like you respond, idiot.

    Like

  53. ac October 1, 2015 at 6:27 PM #

    i am reading the comments in reference to the govt bonds and several words come to mind. Selfishness ! Greed! and what’s in it for me, all of which has nothing to do with patriotism when at a time when a country who once gave so much is asking a small portion in return.
    Are bajans memories so short or has chosen to forget,

    Like

  54. David October 1, 2015 at 7:49 PM #

    @DD

    Barbadians claim to be educated but trustfully we are a very illiterate when it comes to financial matters..

    Like

  55. Pat October 1, 2015 at 7:54 PM #

    Due Diligence October 1, 2015 at 1:23 PM #

    Chretien did it with Canada Savings bonds. Those who wanted to surrender theirs could still do so. I had purchased some for my son’s university and since he did not need the money immediately, I just kept them. (However CSBs are compounded bonds, while those Worrell are offering are discounted bonds.) In 1981 when he was born, I used his christening an other monetary gifts and bought Trudeaus 14% bonds. Interest rates fell through the floor about two years later. Boy, did I make a killing at maturity.

    Around this time they also offered $3,000 to people who purchased new homes. So, yours truly rented out the condo and bought the home I am still in, putting the govt’s money towards the down payment. In fact, when I bought the condo, I also got a grant because of the depressed economy. I had just finished school, and had to borrow the down payment to boot. Nothing I like more than monetary incentives.

    Like

  56. Due Diligence October 3, 2015 at 6:23 PM #

    http://gisbarbados.gov.bb/index.php?categoryid=9&p2_articleid=14822

    “Acting Prime Minister Praises Social Partnership

    Published on October 2, 2015 by Andre Skeete

    While Barbados’ Social Partnership has been deemed a success by Acting Prime Minister, Richard Sealy, he stressed that it was a still a work in progress, whose continued development required the support of all stakeholders.

    Speaking this morning during the signing ceremony for a six-month extension of Protocol Six at Government Headquarters, he acknowledged that while the partnership has had its critics, the model has served Barbados well for some 20 years.

    The Acting Prime Minister reiterated that the local tripartite system has been praised across the globe, with several countries now seeking to implement similar structures.

    In this regard, Mr. Sealy revealed that Cabinet had given its approval for a local delegation to visit Singapore for its 50th anniversary celebrations, to offer insight on the workings of Barbados’ tripartite partnership model.”

    Is the Minister mad?

    Unranked Barbados is going “to offer insight on the workings of Barbados’ tripartite partnership model.” to Number 2 ranked Singapore.

    Like

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