BIMAP blow

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Government’s debt restructuring plans are likely to hit the Barbados Institute of Management and Productivity (BIMAP).

In the financial statement presented at BIMAP’s annual general meeting on Wednesday, KPMG partner Andrew Brathwaite announced that four Government debt instruments – comprising debentures and treasury bills –  valued at $1.1 million currently held by the tertiary institution, would all be affected by the proposed debt restructuring.

He advised that the pension plan might also be indirectly affected since it held debt instruments issued by Government through the Deposit Administration Fund managed by Sagicor Life Inc. Brathwaite further explained that based on the terms of the restructuring offer, BIMAP would still recover the $1.1 million principal of the securities, but the interest would be “significantly reduced from the initial rate of over seven per cent.

“Under the terms of the restructuring, that interest rate will go as low as one per cent and then it will escalate after a number of years to about three or four per cent; and then it goes up after a number of years,” Brathwaite told the BIMAP trustees.

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