Did Barbados taxpayers guarantee the new IADB US$52 million Four Seasons loan?

Is this new IADB loan on top of the $60 million NIS pension monies already ‘invested’?

It could be that we at BFP are just stupid or that we haven’t been paying attention – but can anyone tell us exactly how much public money the Barbados government now has invested in the ailing Four Seasons project? And how much more is guaranteed by the government?

How much did the Four Seasons developers owe the government when the project initially got into trouble?

Can anyone produce an accurate and comprehensive detailed list of what public monies are either already provided or slated for ‘investment’  in the Four Seasons project and how much more will be at risk due to government guarantees?

Can anyone assure that Bajan taxpayers that in the event of default or project collapse that Barbados is #1 on the list ahead of all others for getting paid with the Four Seasons assets?

Anyone? Hello?

The Barbados news media and the government always announce a new loan with celebration and joy – as if our creditworthiness is something to be proud of rather than a temptation to be resisted lest we sabotage and sell-out our country’s future.

Further Reading

BFP February 2, 2012: Four Seasons high profile buyers sue for deposits as Barbados NIS invests $60 million

Please read the following Nation story at their website, but unfortunately we have to reprint the whole article here because that paper has a history of deleting stories for political and other agendas…

US$52m loan in bag

BY TONY BEST | WED, MAY 23, 2012 – 10:03 PM

Sealed, signed and now to be delivered.

That’s the status of an Inter-American Development Bank (IDB) loan of US$52 million for the Four Seasons hotel and resort project in Barbados.

The bank’s executive board, headed by its president Luis Alberto Moreno, yesterday morning approved the investment needed to restart the project, stalled since February 2009.

“Approval by the board signals that the bank regards the project as both viable and vital,” Dr Richard Bernal, the Caribbean’s executive director at the IDB, told the DAILY NATION.

Bernal, who along with Moreno played a key role in securing the board’s approval, said: “The Inter-American Development Bank has in the past not done many private-public sector partnerships in high-end tourism but understood that Barbados as a small country does not have the capacity for mass tourism and must maximize the returns through its proven capability and comparative advantage in high-end tourism.”

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6 Comments

Filed under Barbados, Barbados Tourism, Consumer Issues, Economy

6 responses to “Did Barbados taxpayers guarantee the new IADB US$52 million Four Seasons loan?

  1. Wily Coyote

    All Loans by the IDB are as follows — The IDB makes loans to the governments of its borrowing member countries(Barbados) at standard commercial rates of interest, and has preferred creditor status, meaning that borrowers(Barbados) will repay loans to the IDB before repaying other obligations to other lenders(read NIS etc.) such as commercial banks.

  2. Not a chance,

    Here is just another example of The IADB lending monies to countries that will never pay.

    In the end, Barbados will effectively say, you should never have loaned to us and you knew it.

    These international lending agencies and banks are the creditors who refuse to exercise prudent lending practices disallowing the world economic system to correct itself.

    In the end it is just more fraud on the little guy who has to take a depreciating currency with less and less purchasing power..

    What about the IADB and IMF demanding ITAL and responsible democracy
    of these countries before rolling over and having their tummy’s stroked with bloated expense accounts for the chosen few.

    Off with their heads!

  3. Eyes wide open

    What a load of piffle! If you don’t know that there are differnt types kinds of IDB loans please keep your gob shut.

    Even a cursory reading of the local Press would tell you that Government guaranteed the loan from Ansa Merchant Bank and that it has loaned the company another sum from the NIS. Don’t remember the exact figures so don’t want to be misquoted.

    That is the extent of their exposure. This new IDB/private sector loan has no government guarantee. It was made on the strength of the commercial viability of the hotel.

    Steupse!

  4. Wily Coyote

    @ eyes wide open

    Hope you have your wallet open as if the loan is called Barbadian Taxpayers are on the hook to repay the loan. This IDB loan was a LOAN and not a handout.

  5. Steupse!

    Hey, Eyes Wide Open, don’t pinch my punch line!

  6. Vezlo

    Good money after bad if you ask me. This will end very very badly. The rebar is rotten to the core, rusted. Had a walk through the building site about a month and a half ago. Rusticals coming down from the second story rebar was disgusting.

    It will stand for 10 years and that will be it. horrible.