BRIDGETOWN, Barbados--Barbados’ Minister of Finance Chris Sinckler has assured existing and potential investors that there is no truth to Opposition claims that government has defaulted on a major international loan.
He said on Tuesday, that Barbados’ $41.23 million payment on its $225 million loan from financier Credit Suisse had been made on schedule, on June 18, contrary to what had been claimed by Leader of the Opposition Mia Mottley last month, but Mottley is standing by her statement, insisting that the amount was less than half of what Parliament had agreed two years ago would have to be paid.
Mottley, speaking at a Barbados Labour Party public meeting on June 28, alleged that the payment date had passed without government fulfilling its obligations to Credit Suisse. But, Sinckler went to Parliament yesterday, armed with a letter signed by the principals of Credit Suisse LLC, confirming that Barbados had met all its obligations to date and was current on all payments.
“It is, therefore, a horrible untruth that Barbados has defaulted on any of its debt obligations for this or any other loans,” he said in a ministerial statement delivered in the House of Assembly, adding that the country had also paid the full principal and interest on another international loan three days before it was due. The minister blasted Mottley for making the “dangerous and irresponsible” allegation, saying it had the potential to hurt Barbados’ reputation and economy.
“These very reckless and ill-considered statements have, in fact, caused a negative reaction amongst investors, not only in this [Credit Suisse] loan, but in general. Indeed, in the days immediately following the statements, and as recently as this week, officials at both the Central Bank of Barbados and the Ministry of Finance and Economic Affairs, including myself, have had to take calls querying the veracity of these statements,” he said.
Sinckler sought to put the minds of investors and others in the international community at ease, assuring that Barbados had never missed loan payments and intended to maintain that track record.
Responding in a statement later in the day, Mottley said the Finance Minister had not given all the facts. She said he had still not explained why only $41.23 million was paid since, under the loan approved by Parliament in 2013, Barbados was required to make eight semi-annual payments of $56.25 million plus interest, starting June 18, 2015.
“Notwithstanding all the Minister of Finance said in Parliament, I stand by my statement. I further demand that the Minister of Finance now explain to the country how a lesser payment of $41.2 million now becomes acceptable to the creditors. Neither the country nor Parliament has been made aware of any subsequent renegotiation or change to the terms of the repayment of that loan,” the BLP leader contended.
Mottley called on Sinckler to “cease engaging in verbal gymnastics and contortions” and come clean with Barbadians on the true status of the terms and conditions of the Credit Suisse loan.
