Bracing for downgrade
GOVERNMENT IS BRACING for a major credit rating downgrade as it starts discussions with the International Monetary Fund (IMF) and prepares to restructure Barbados’ debt.
Yesterday, Prime Minister Mia Mottley and her economic team met with an IMF delegation headed by Dr Bert van Selm, as Barbados contemplates entering an IMF programme.
Government also announced the appointment of British firm White Oak Advisory Ltd as its financial advisor in the debt restructuring process.
Government also signalled that following discussions with “the rating agencies”, after its announcement last week that Barbados was suspending payments to foreign commercial creditors, “it is expecting that Barbados’ credit rating will shortly be adjusted down to Selective Default (SD), as is customary when comprehensive debt restructurings are announced”. (SC)
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