They are going to declare me “persona none greater” like Walter Rodney from Guyana.
In November last year I drew attention to Mr Sanka Price’s observation of a loan from a certain bank being tied to the country’s credit rating. I questioned the integrity of accepting such a condition.
I was alarmed that our country had been reduced to a state where our Government would accept this conditionality.
Furthermore, I wondered if that conditionality would be written into sub-loans generated by the parent loan or if the Barbados taxpayers would be liable for such an eventuality instead of the eventual householder. Would this be fairness redistributed?
Now our status has been downgraded and most likely this will affect the interest rate of that loan.
I raised the issue of bank profitability in the article and questioned the role of the Central Bank in overseeing fairness for the general public in the banks’ relentless pursuit of profit during the hard times being experienced by the country.
I quote: “At this time two things are needed.
“(1) Reduce the pressure on foreign exchange by reducing imports that are not absolutely essential for a stated period of time – say, one year (there will be howls of protests but if we do not have foreign exchange, we do not have two-to-one parity).
“(2) Our work ethic is poor. From white- to blue-collar! Just look around and see who is idling on the job, whose business phones go unanswered, who gives bad service and has no regard for customers’/clients’/patients’ time. You ask me what I would do if I were Prime Minister or Minister of Finance!”
Our Minister of Finance has to be wary of banks. He cannot afford to be overawed by an approach from them. He must analyze carefully what they are requesting, knowing full well that their foremost motivation is profit at all cost.
Our Minister of Finance must consider, even if the Central Bank does not, the interest of the people, what with all other cost centres experiencing increases that seem to be out of our control.
I pointed out in my article that if a customer is experiencing difficulty, instead of giving him the finest interest rate that would reduce his expenses, the bank tends to increase the interest rate in order to compensate for the “risk”.
I have always been at loggerheads with this illogical policy. The further the country slides in its credit rating, the higher the interest rate becomes. But is this not what the market was doing to Greece until major countries stepped in? Are we reduced to that status?
This does not seem fair when the investor had approximately a seven per cent share in the company, and the country (the Barbadian taxpayer), 93 per cent. What I mean is that the savings accounts, fixed deposits and current accounts make up the capital of the banks, and is supplied by the very people through the Government that has entered into the deal. Who is advising the minister, or was he advised? Perhaps this has now set a precedent for Barbados – and other banks, foreign and local, seeing that we are easy idiots, will follow suit.
What is happening to the many housing units at the corner of Country Road? Are they to be allocated nearer to 2013? If that is so, are the people of Barbados not sensitive to the reason for the delay, if delay it be? Perhaps if it were my decision, I would save myself some corned beef and biscuits or some Grantleys.