AN INTERNATIONAL ECONOMIST says highly indebted countries like Barbados may have to seek debt forgiveness as part of the strategy to get out of the spiralling crisis.
David McWilliams, an Irish economist who has been ranked among Europe’s top ten economic thinkers says there are too many countries unable to pay their mounting debts including some in the Caribbean. Furthermore, he has recommended to Barbados, which is now ranked among the most highly indebted in the region in relation to the gross domestic product, should seek debt restructuring.
Speaking last night at the Royal Bank of Canada/Royal Fidelity 2016 Economic Outlook Seminar at Hilton Barbados, that sometime soon, the island may also have to examine the possibility of debt restructuring.
Drawing on the experience of many European countries such as Portugal, Spain, Iceland and Italy, he said there comes a point when debtors just cannot meet their commitments to creditors and debt forgiveness has to become part of the status quo.
Furthermore, he predicted that “an enormous debt forgiveness deal” was coming in Europe.
In relation to Barbados, he said it was impossible to make the island’s balance sheet better by borrowing more money and so the question of debt forgiveness had to be put on the table.
See full coverage of the RBC Economic Seminar in the WEEKEND NATION. (GE)
