THIS country’s next foreign loan repayment is for the prison at Dodd’s St. Philip, due later this month. And there is a question whether Government will be dipping into the more than one billion in foreign exchange reserves to make the payment, which is usually done in installment, or whether there will be a default of the amount due.
President of the Barbados Economics Society (BES), Shane Lowe, believes that given the suspension of external debt payments on June 1, last year, and unless there is an agreement between external creditors and the Government on new debt repayment terms, the Government will likely miss the payment on the Prison bond this month.
He told the Barbados Advocate that, in addition, he does not see this affecting the overall foreign currency bond credit rating given the current level of default. “However, in the event that the government comes to an agreement with the holders of the prison bond in quick order, there is no guarantee that the new terms on the security will require a payment later this month,” said the BES president.