Holders of Treasury Notes, Treasury Bills and Debentures are reminded that the deadline for accepting Government’s debt restructuring proposal is tomorrow, Friday, October 5, at 5:00 p.m.
This reminder came today from Senior Technical Advisor to the Government of Barbados, Dr. Kevin Greenidge, who said Government recognized that the terms were difficult ones, as individuals and pensioners were being asked to stretch out the repayment of their debt to 15 years, and accept reduced interest rates.
“But these changes have become necessary because the debt burden is otherwise unsustainable, and continued repayments would only further undermine the Barbados dollar,” he noted.
Dr. Greenidge stated that the Central Bank would tally the responses to the offer letters and an announcement should be made by Friday, October 12.
“After that, the Central Bank will place the new bonds in accounts for each person and input the bank payment information it receives. As part of the modernizing process, the Central Bank will no longer send out physical certificates for the new bonds, and will need to collect previously issued certificates for Notes and Debentures. Interest payments will be made on December 31, 2018, for the new bonds,” he explained.