GOVERNMENT MAY SWEETEN the “formal” debt restructuring terms it is preparing to offer foreign commercial creditors who have not been paid for almost a year.
But the Ministry of Finance stressed while the Mia Mottley administration would “work to improve the terms of the anticipated offer”, this would be predicated on the deal not compromising Barbados’ debt sustainability requirements.
The debt negotiations update, issued on Tuesday, came as a representative of the foreign investors warned that Barbados being in debt default since last June “does not benefit anyone”.
Noting that Prime Minister Mottley attended the last two meetings between Barbados’ representatives and members of the external bondholder committee, the Ministry of Finance said “good faith discussions with the Barbados bondholder committee have intensified since the start of 2019 in the context of a non-disclosure agreement (NDA) between [Government] and the advisors to the committee that was first put in place in September 2018.
“[Government] will continue to consult with the affected creditors in the coming weeks, with the view to collating as much feedback as possible – including feedback from the bondholder committee – before moving to finalise the terms of a formal offer to be put to holders of its US dollar denominated commercial debt,” the ministry stated.