Barbados just borrowed another US$200 million dollars through a private bond placement with the Deutsche Bank and as normal the government is bragging in the press about how borrowing money is a wonderful accomplishment and something to be proud of.
As for me, I always thought it meant that the family was in trouble if we had to borrow money to buy food and pay for electricity. Borrowing to invest in business or making your house worth more is one thing – borrowing to buy food is another.
Let’s look at how the loan is reported in the Bajan news media, and then in the world financial press. Both perspectives are probably true, but the government’s position reminds me of the old school song “Think happy thoughts”…
“The bonds issue shows how confident foreign investors are that the economy is stabilising and our projections and approach is reasonable…”
Minister of State in the Ministry of Finance, Senator Darcy Boyce puts on a happy face in The Barbados Advocate article On even keel
“Barbados has a tough story to tell and will have to pay a considerable premium if it wants to raise money in the international capital markets. That at least is the word on the street as the sovereign meets investors this week during a non-deal roadshow in the US and Europe via Deutsche Bank.”
… from the July 21, 2010 International Financing Review article EM BONDS: Barbados has tough story to tell