Barbados applies for new IDB loan to make payments on previous borrowing

Like a speed addict looking for another fix…

(Submitted by Mac and Clambake)

According to a Nation article, our government has applied for yet another loan from the Inter-American Development Bank to “Shore up its finances”.

Let me put that into simple English for you: We can’t make our current expenses, including payments for previous borrowing, so we’ve borrowed more to make everything better. Better for only a while, that is.

“If I ran my family’s finances like politicians run Bim, we’d be out on the street

Anyone who’s ever taken a cash advance from one credit card to make a minimum payment on another credit card is quite familiar with what’s going on here. The only difference is the bank doesn’t allow you to indebt the next five generations and their futures for your credit card payment. The IDB and the big countries love it when Barbados does this because the more we owe the more we can be controlled.

US$377.1 million from the IDB in the past 5 years.

Who owns our Barbados? How much do we really owe? Does anyone really know?

How are we going to repay all this money? When will we start?

Get yourself over to the IDB Barbados page and you’ll see this little pie chart that tells the sad tale. In the last five years alone, Barbados has borrowed from the IDB some US$377.1 million dollars and I challenge anyone to account for what ‘we’ did with it.

Barbados borrowing from the Inter-American Development Bank

US$377.1 million for the past five years only…

Doesn’t include the recent $66 million dollar application…

Agriculture and Rural Development  US$20.5 million

Energy    US$142 million

Environment and Natural Disasters    US$30 million

Tourism    US$55 million

Urban Development and Housing    US$30.2 million

Others     US$99.4 million

Further Reading

IDB loan in works

BY TONY BEST | FRI, OCTOBER 05, 2012

Barbados has applied to the Inter-American Development Bank for a BDS$66 million loan to shore up its finances.

The loan application is in the “preparation” stage and if approved by the bank’s board of directors would “provide the country with balance of payment support”, according to the IDB, in a loan document posted on its website.

However, the bank has expressed concern that Barbados’ fiscal situation has worsened.

The loan document specifically points to:

• a weak tax administration, which was “dispersed across several ministries, Government departments and agencies, including the Customs Department where it said 30 per cent of those paying value added tax filed returns late and only ten per cent of the Customs declarations were “post clearance audited”.

• the absence of an information system for the administration of excise taxes.

• tax exemptions costing the Treasury $500 million every year or 5.6 per cent of GDP, adding that Government was unable to “quantify in detail the revenue loss” for every incentive scheme now in place.

• Government’s approval of transfers to public corporations and agencies “with no economic rationale or efficiency analysis”.

• many of the 169 public agencies relying on the Treasury for operating funds had collectively run up an “aggregate deficit (of) between 1.5 and 2.1 per cent of the nation’s GDP.

• Government procurement rules and information were “biased in favour of financial management and fund control”, but paid scant attention to the monitoring and the evaluation of procurement procedures.

7 Comments

Filed under Barbados, Economy

7 responses to “Barbados applies for new IDB loan to make payments on previous borrowing

  1. Green Monkey

    “The IDB and the big countries”… (and the big banks /GM) ……”love it when Barbados does this because the more we owe the more we can be controlled.”

    The Secret of Oz (The bubble ride of deb has come to an end).

    Intro:
    “In 1996, in a documentary called “The Money Masters”, we asked the question why is America going broke. It wasn’t clear then that we were, but it is today. Now the question is how can we get out of this mess. Foreclosures are everywhere, unemployment is skyrocketing — and this is only the beginning. America’s economy is on a long, slippery slope from here on. The bubble ride of debt has come to an end.

    “What can government do? The sad answer is — under the current monetary system — nothing. It’s not going to get better until the root of the problem is understood and addressed. There isn’t enough stimulus money in the entire world to get us out of this hole.

  2. Watcher

    The problem with the Barbados monetary system is that all the conversions of currency are made by the only official money exchanger, the Government . Government defecits cause foreign exchange leaks which to a great extent have to be covered in US dollars creating a need to borrow US$ funds. When the tourist industry is in decline, so is a major producer of foreign exchange. Defecits and loss of tourists are a doubled edge sword which have the potential to totally undermine the countries financial system. Barbados dollars will gradually become worthless and that value will be reflected in significanlty higher costs of living for everyone on the island.

  3. 23 years

    Can’t hide it any more. Place is broke and the tourists dont come no more.

  4. ComeHere

    The singular problem in Barbados is that the hired help Ministers see the election to office as a right to steal. These elected clowns and PHD pretenders now have a plan to rob the very bank they owe in order to pay off their overdue loans. The downtrodden masses are pacified into acceptance with utter nonsense promises of better days ahead. The Gov’t has adopted a Courts hire purchase mentality of nothing down no payments for 60 days as the solution to our junk bond rated economy believing that, magically, money will drop from the sky to pay for all their reckless spending. “It is only a few dollars per week, we can pay back dat 66 million with de extra VAT, and if needed, wid a lil dip into the NIS money. No one will ever know.” Unable to “quantify in detail the 5.6% of GDP, $500 million in losses…” Absolute economic geniuses. Madness adds to the equation as idiot after idiot spews out positive visitor arrival numbers, casino cruise ship visions of grandeur, and 4 Seasons is the answer propaganda as social media is trashing Barbados’ reputation, prices are rising and will continue to rise, and the planes are empty. The Oracle at Delphi.

  5. The Watcher!

    WOW
    Borrow on the strengths of what? Donvilles’ Porn Empire?
    We borrowing money to repay a previous loan which went to uphold and upkeep the Status-Quo. And now we’re borrowing again to repeat this process? Again and again? Really?
    Frundel! What do you have to say about this? You think that this bullshyt is good enough? Same shyt different day?
    I hope that when the day of reckoning comes, you don’t think that MY tax dollars are going to go to support this cubbarism! I wud fyah de wuk, sell salt watah pun de beach tuh flying fish, culleck mah unemployment and fine a whistle blower organization to help collaspe this country and its evil, foul, treacherous and treasonous deeds first!
    De only thing wunna cud borrah from den on is “good luck wishes” from International lenders on ever getting a red cent again!
    Blasted pailing cocks like unna!

  6. LOOK

    Government before 2008 was not financially sound. Three S&P downgrades proves this. Minister of Finance, Chris Snickler does not hide fact that government has a cash flow problem “it’s no greater than any stage in the past”. The DLP walked into government affairs finding things they did not expect, worse, much worse than King Kong and Gonzilla monsters. Don’t worry, the BLP sees it a duty to remove Barbadians from the grips of the current government. They, the BLP are the FIX IT folks. They will fix things. They will fix CLICO. They will fix it. They will fix the economy, they will fix it. They will fix the national debt, they will fix it.

    WE SHALL SEE.

  7. As a bajan living in the UK, many of us wanting to return to Bim is now sitting up and discussing this, because of so much to considering, making a move.
    Many of us, who were conned by Barbados legal system, crooks calling themselves attorneys at law, is making plans for a web site to have the names and details of past and present lawyers from Barbados who have conned us all.
    One thing is for sure, we are now looking for (White Lawyers ) in Barbados to do our business any of us who plans to return home.

    Plans can be put in place to petition the (Commonwealth Secretariat) even if this mean also petitioning to( HER Majesty the Queen).through a group of (QCs) in the UK who are willing to work for nothing.

    Under consideration a complaint against the government of Barbados, for not protecting and serving its people, of Barbados constitutionally , without prejudice and allowing, so call legal persons known as lawyers, persons who have taken oath of office under the Barbados constitution, to legally protect and serve people and personal property lawfully,under sections/sub sections and chapters of the Barbados. constitution.

    This failure of constitutional justice by the government, of the day have now place in jeopardy, the constitutional rights to our citizens of Barbados.
    Bajans read your constitution, make sure we choose our politicians very carefully in future, we must remember who conned us.