Minister in the Ministry of Finance, Ryan Straughn, will move the passing of a Resolution tomorrow in the House of Assembly to restructure Barbados’ foreign debt.
The passing of the Resolution will allow for Government to launch the external debt exchange to replace the existing foreign commercial debt with two new bonds.
Straughn said the indicative terms would see a new ten-year bond issued, resulting in a 25 per cent reduction in principal, a 35 per cent reduction in accrued interest at an interest rate of 6.5 per cent payable semi-annually, and include an adverse weather clause.
“At the conclusion of this debt exchange, the way would be paved for the rating agencies to reassess the credit worthiness of the Government of Barbados, which should lead to the upgrade of our external credit rating, the first for a decade,” he added.
The Minister said that with the settlement of the external debt, Barbados would be on track to meet the six per cent primary surplus, placing the public debt on a more sustainable path towards achieving the 60 per cent debt to GDP target by 2033 as part of the Barbados Economic Recovery and Transformation programme.