Sir Frank Alleyne
Minister of Finance Chris Sinckler persuaded parliament last week to raise government’s borrowing limit from 1.75 billion to 2.75 billion. This single act ensures that government can float Treasury Bills and other government securities as the need arises. One may reasonably assume that for the government to have expanded its borrowing capacity it raises the issue of a concern for cash flow. The Minister’s explanation that seeking approval for one billion at one sitting pre-empts the need to return to parliament is ‘interesting’.
On the international front Barbadians ‘heard’ that Minister of Finance Sinckler and Governor of the Central Bank visited the UK recently to enter the capital market. As recent as 2011 Minister Sinckler publicly expressed a reluctance to accumulate external debt. His preference was for the government to leverage the flexibility of a highly liquid local market. Of late however we have heard that the lack of appetite for government securities has forced government to rethink this strategy.
About protecting the international reserves the government has made this a priority, relatively so. Although an adequate number of weeks imports provide Barbados safe cover, Barbadians must be concerned that shoring up the forex reserves of late required the sale of Republic Bank and Emera shares.
One may speculate that the government has been advised by the Central Bank the need to match expected forex outflow with borrowings. Our junk status will probably add to the cost of the loan but the thought of being snared by the IMF should make the cost of the loan palatable.
Now that the political rhetoric has faded post February 21, 2013, the country yearns for serious debate about the economy. Do we need a stimulus or not? Which state assets must be privatised or divested from if some prefer the euphemistic form. How should we rethink our tourism strategy? Do we need to force the rollout of alternative energy? It seems incredible that five years after the global economic meltdown Barbados is unsure of an economic plan.
What concerns BU as well has been the muted voice of Sir Frank Alleyne from public discourse on economic matters.
Barbados Underground 
David
Cutting civil service salaries should be the last resort. When Government has tried everything else and that is it final option, I would give my support. However, the politicians should remove themselves from the tax collection process and allow the civil servants to do their jobs. Allow them to go after the $25 million in VAT owed by Courts and the countless millions owed by their other cronies.
Interesting to read DLP stalwart and economist Tennyson Beckles calling for a new model because the Barbados economy is grinding to a halt. Did we hear this dialogue BEFORE the last general election?
It is very instructive listening to today Brass Tacks calling program – listening to those who are the panellists and the callers who are sharing some of their experiences at this time of profound political financial material depression in this country.
One caller has claimed how he has decided to what – he called – sell his land in order to ease the financial burdens on his family after receiving a threat in a letter from a financial institution (which he did not identify in partly reading the letter on the airwaves) that by a certain time if he did not make good on his account, how it is their intention to so-called sell the land to recover what is so-called owed to them.
This person seemed very surprised that this particular financial institution is behaving like this so abruptly, after – in his own view – being a good client over the time.
The point is that the these financial institutions are among the prime local culprits in making sure that things become harder financially materially for many individuals and other entities in this country.
Believe it or not a future coalitional government of which the PDC is a part of shall assist in reining these very unproductive rift raft institutions in this country.
PDC
Now the program has taken a bad turn, with much of it being taken up by the bland useless utterances of Steve Belle and Algernon Yearwood of the COB credit union about the how, et al, they have been relating to clients who have run into financial difficulties in making so-called loan deposits.
But you know, the moderator introduces from time to time listeners to the program by saying the program is about the economic crisis in the home, yet talks takes up too much time dealing with an agency that is part of the financial process in this country of making things harder financially for many Barbadians.
Many Barbadians need to hear about the social and corporate suffering of many others of their kind.
The phone lines should been damn cut on those too individuals, as that these individuals and their institution have access to various media and other public fora to put out their propaganda to those in the public domain who would swallow hook line and sinker their trash.
PDC
It is really tragic hearing how a UWI student who having lost her home (presumably to a financial institution) and is still making deposits in relationship to it, is so saddled with so many financial burdens, notwithstanding the financial assistance she is claiming she is getting from various local sources.
The fact that the listening public is made to hear comments of the various persons about their social financial hardships asks the question: beyond acting as a medium through with such persons are able to relate such experiences to others, of what fundamental purpose is VOB hosting this type of program then?
Why not use the program to mobilize persons in Barbados against these two stupid backward visionless DLP/BLP parties for helping to put hordes of Barbadians into extreme social material financial difficulties??
Surely, such would be far eminently better than listeners being made to listen to the moderator – who we have not heard say what her name is – and the other panellists and a few callers simply exchanging views with one another and craving sympathy – albeit that both these things are still important for many people to perceive.
The damned DLP and the blasted BLP must go!!
PDC
I have written in this blog about the fraud of mortgage indemnity guarantee. It is theft and mortgage lenders impose it on borrowers in Barbados.
It was banned in Britain a long time ago and is still in operation in Barbados.
The other organised theft is so-called property auctions in which untrained lawyers set themselves up as auctioneers and then decide illegally who to sell the property to.
The principle of forbearance and repossession is that the property should be sold for the highest price.
I once made an offer for a building, had to fly out of Barbados before the auction, but offered to bid by telephone. I hedged this by asking the law firm, a well known firm, to inform me of any offers before accepting any bids.
To this day they have not even acknowledged my letter. What they did not know was that I knew someone working in the firm who kept me informed.
I did not bring a case against them because I am aware of the state of Barbados justice and a firm of that reputation would wipe the floor with me.
By the way, have readers noticed that the government is calling an economic conference on June 28. In other words, they are dredging for ideas.
I have always said that Stuart, Sinckler and Worrell are out of their depth.