“Barbados has credit rating equal to Gabon and Nigeria.”
“That is very bad news for 126,000 long-time contributors to Barbados’ National Insurance Fund…
At least 60 percent of the Barbados National Insurance Fund’s $2 billion is invested in this dodgy Bajan junk – it now finances a third of Barbados’ entire public debt.”
There’s not much more to say when the truth slaps you hard in the face – in this case delivered by one of the most respected financial publications: Forbes.
You see that photo above of Finance Minister Christ Sinckler, “the Grinchler who soiled Christmas” ???
Forbes printed that. Wuhloss!
It looks like BLP Member of Parliament Dr. William Duguid knew something when he pulled the ejection handles on Barbados, moved his family to Canada and his assets offshore. You can bet that Owen Arthur has his Swiss bank account number memorised too!
And although the DLP blames the BLP and the BLP blames the DLP, it really doesn’t matter anymore. This is where we are…
Postcard from Barbados — a.k.a. ‘Cyprus West’
Barbados, “the Jewel of the Caribbean,” the tiny easternmost island in the Lesser Antilles with 288,000 year-around inhabitants and lots of very rich foreign visitors and investors, is in the throes of a financial meltdown.
While its entire GDP is now only worth about $4.2 billion, and its population is smaller than that of Duluth Minnesota, this crisis is worth examining closely. For here we have a very precise example of the “finance curse,” where excessive dependence on high debt, an aggressive offshore haven industry, very low tax rates for high-net worth investors, foreign companies, and banks, and high tax rates for everyone else, have essentially brought this little country to its knees.
At 94 percent, Barbados’ ratio of public debt to GDP, already the Caribbean’s second highest, is fast approaching Cypriot levels.
Not surprisingly, in October, a $250 mm Bajan bond offering in the US market had to be yanked after it was greeted with howls of derision. In late November, S&P downgraded the long-term rating on Bajan bonds for the third time in two years to BB-, below investment grade, the same rating as Gabon and Nigeria…
… continue reading Forbes Postcard From Barbados — a.k.a. ‘Cyprus West’