WITH BOTH Moody’s and Standard Poor’s downgrading Barbados’ credit rating, the Government is being urged to move aggressively to cut its spending now.
The call came from Winston Cox, a former Central Bank governor, who told the WEEKEND NATION shortly after Moody’s downgrading of the rating that strong action was needed to reduce the deficit and to stave off a possible credit default which would damage the nation’s reputation, a warning sounded by Moody’s when it announced the downgrade of the bond rating to Caa3.
Although Charlie Skeete, a former Barbados ambassador in Washington, didn’t comment on Moody’s warning about the chances of a default, but said the Government must move quickly to reduce the deficit, a plea he has made repeatedly in the past few years.
“The downgrade announced on Thursday [yesterday] by Moody’s wasn’t a surprise,” said Cox, who lives in Quebec. (TB)
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