MINISTER OF FINANCE Chris Sinckler has rubbished claims that Barbados has defaulted on a US$225 million loan from international financier Credit Suisse.
And Sinckler said the “very unwarranted accusation”, which he said Leader of the Opposition Mia Mottley made at a Barbados Labour Party public meeting on June 28, “has the potential to undermine the confidence of current and prospective investors in our country, damage the impeccable reputation of Barbados in the international financial markets and derail the hard-fought gains, which as a country we have made over many years”.
The minister used a ministerial statement this morning in the House of Assembly to respond to the issue, a decision he said was taken after the Central Bank and Ministry of Finance and Economic Affairs officials, including himself, “as recently as this week . . . have had to take calls querying the veracity of these statements”.
In a report published in the June 30, DAILY NATION, Mottley was quoted as saying: “Information is being hidden from you in this country and . . . if the Budget was called one month later, [Sinckler] would not report to you that the foreign reserves are in the good condition, because the Credit Suisse loan has to be paid on the June 18 and as of Friday it still was not paid and that is $88 million.”
However, Sinckler said “these very reckless and ill-considered statements have in fact caused a negative reaction amongst investors not only in this particular loan but in general”.
In contrary, he added, “the facts” were that “On the 18 of June 2015 under the terms and condition of the … loan contract with Credit Suisse . . . Government . . . in fulfilment of its obligations made the payment as scheduled in the amount of $41.23 million, representing interest of $20.6 million and amortisation of $20.63 million to the various holders of the facility”.
“It is therefore a horrible untruth that Barbados has defaulted on any of its debt obligations for this or any other loan. Indeed, I can further alert the House and the country that on the 29 of June 2015 Barbados met in full the principal and interest on the Barclays . . . loan, which were effectively due on the 1 of July 2015,” he said. (SC)
Listen to Sinckler’s full statement below:
Click below for Opposition Leader Mia Mottley’s reply.
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