Barbados Sees External Debt Swap Offer Ready in Weeks or Months

(Bloomberg) Barbados expects a debt restructuring offer with external creditors to be ready "in a matter of weeks or months," special adviser to the Barbados government Avinash Persaud said [today] during a webcast with the IMF. 

  • Discussions with foreign creditors "more complicated and it takes longer" than local debt restructuring. "We believe there is a path toward an adjustment" with external debt: Persaud 
  • IMF’s deputy division chief Bert van Selm said he sees "orderly process with good faith discussions" with domestic and external creditors 
  • Domestic debt restructuring offer "strikes the right balance" for government and credit holders: Van Selm 
  • Public debt of 157% of GDP is unsustainable "by any standard" and restructuring debt stock very important: Van Selm 
  • Government targets debt-to-GDP of 60% and primary surplus of 6% of GDP, Persaud said 
  • The government wants to "move toward a world where we can remove our exchange controls," Persaud said
  • Reserves should be around $2Bn Barbados dollars before easing exchange controls. "We are not going to do it in any rushed or rash way," Persaud said