Prime Minister Dean Barrow returns to the country tomorrow after making a trip for official business. Big business, actually - try the half a billion dollar super bond 3.0. He's trying to get it re-finances so that government does;t have to make crippling bullet payments next year. But all we've seen so far is a press release, and today we asked Minister Elrington what he knew about Superbond 3.0.
Hon. Wilfred Elrington, Minister of Foreign Affairs
"I imagine he is seeking to negotiate terms to make it more favorable for us to discharge our obligations under the contract. It's exceedingly important when one has loans for want to be very careful not to give the impression that one does not want to repay it in accordance with the terms and conditions under which it was granted. Tradition has been for lenders to be reluctant to renegotiate loans. But Prime Minister is prudent and personal. He is doing all in his power to what extent we can in fact reduce the lenders to agree to have a renegotiation of the payment plan."
Courtney Weathernburne, 7News
"In your view, I should say the government's view, what would be the most successful method or approach to restructuring the super bond?"
Hon. Wilfred Elrington, Minister of Foreign Affairs
"I think if we could get some extension of time in which to pay it, reduction of capital that we have to pay. Also reduction of interest. Those are areas where I am sure the Prime Minister and his advisors will be looking at; length of the repayment period; the amount that we have to pay back in principal; the amount that we have to pay in interest payment percentage and interest, those are things which I think they will discuss."
As an aside, Elrington said that there could be an increase of taxes in the next the next fiscal year. The picture that government painted to bondholders was certainly dire: it says the country faces, quote, "serious economic and financial challenges...low growth, rising fiscal deficits, a deteriorating balance of payments position, and declining sovereign debt indicators." end quote.
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