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.
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
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.