Wed | Nov 21, 2018

Mottley cites support for Barbados debt-restructuring plan

Published:Monday | October 15, 2018 | 12:00 AM
Barbados Prime Minister Mia Mottley

Barbados Prime Minister Mia Mottley confirmed yesterday that 99 per cent of the island's creditors had agreed to back a debt-restructuring exercise proposed by her government.

"I am happy to report that in respect to that debt exchange, which involved 115 per cent of our national income or the equivalent of $1.9 billion in domestic debt and arrears, that we have had the extraordinary performance of 99 per cent of those who tendered voting yes for the domestic debt exchange," a Barbados Today report quoted Mottley as saying during an aired address.

"And I am told that 99 per cent of those who tendered represents more than 90 per cent of those eligible to vote."

The plan, which had seen creditors expressing reservations last week, proposed a haircut to interest rates and longer terms to maturity.

"I thank you on behalf of this country for that vote of confidence in our future," Mottley said.

She added that the approval paved the way for Government to address the concerns of the island's pensioners, scores of whom have publicly complained that they were relying on their investments for retirement income and would now be forced to live on reduced incomes.

"And I will provide the specifics on those as soon as we can because we understand the nervousness that many still have," Mottley said.

The prime minister revealed that negotiations would also continue with external debt creditors this week and promised to provide a further update in due course.

"Once this is behind us, we will be in a position to advise the country, what will be the savings, both in interest and in terms of principal, that will allow us to move forward with certainty," she said.

Taken from www.barbadostoday.bb