Government reaches deal on foreign debt

There has been a breakthrough in debt restructuring negotiations between Government and the Barbados External Creditor Committee, which represents foreign bondholders.

The NATION can confirm that the two parties have reached an agreement in principle to resolve the external commercial default.

It is expected that the new bonds due 2029 will be issued with an aggregate face value in excess of US$500 million.

Under the arrangement, the foreign commercial creditors will be exchanging “certain of the Government’s United States dollar-denominated debt for new bonds to be issued by Barbados”.

This includes Barbados’ 7.8 per cent Fixed Rate Bonds due 2019, 7.25 per cent Notes due 2021, seven per cent Notes due 2022, 6.625 per cent Notes due 2035, and Floating Rate Loan with final maturity in 2019.

The agreement in principle follows extensive discussions between the Committee and the Government after the Mia Mottley administration ceased payments to foreign commercial creditors on June 1 last year. (SC)