Debt payments ‘won’t drain reserves’

Prime Minister Mia Mottley appealing to Barbadians again to stay the course, while IMF’s Deputy Division Chief for the Caribbean, Bert van Selm listens. (Picture by Lennox Devonish.)

GOVERNMENT’s external debt restructuring payments, launched yesterday, will not be a drain on Barbados’ foreign reserves, says International Monetary Fund (IMF) Barbados mission chief Bert van Selm.

He also said the country must sustain efforts to reduce debt, which in the Caribbean was “just higher than anywhere else”.

Yesterday, Government, through the Ministry of Finance, Economic Affairs and Investment, officially announced holders of “certain of its US dollar-denominated debt” were being invited to exchange their old bonds for new ones.

Parallel offers are being made to holders of three series of US$540 million English law-governed US dollar bonds; holders of certain Barbados law-governed US dollar bonds issued by the Barbados Transport Board, Barbados Agricultural Management Company and the Government; and the US$225 million Credit Suisse loan.

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