Superbond 3.0 – Prime Minister Speaks of Guaranteed Sustainability

Dean Barrow

Prime Minister Barrow, accompanied by Financial Secretary Joseph Waight and Economic Ambassador Mark Espat, returned from a working visit to New York on Saturday, following a series of meetings with G.O.B.’s legal and financial advisors in the United States.  The three-man team met with Citigroup Global Markets Incorporated and Cleary Gottlieb Steen and Hamilton seeking an adjustment of the terms and conditions of the present agreement with bondholders on the billion dollar super bond.  Government is hoping to reduce payments and increase the lifespan of the bond beyond 2038.  The next payment is due in February 2017 and government wants a committee of bondholders to lower rates. But what did the Prime Minister and his team achieve in New York? News Five spoke with PM Barrow and Ambassador Espat upon their return over the weekend.

Prime Minister Dean Barrow

“As you’ve already found out, I went together with Ambassador Espat and the financial secretary.  We went to finalize matters with our legal and financial advisors prior to officially notifying bondholders and the public that we are going to be seeking to restructure.  We have agreed on our strategy and now it is a matter of actually engaging the bondholders in a face-to-face negotiations which Ambassador Espat will lead together with the CitiGroup which is the sort of financial intermediary that’s advising us.”

Reporter

“Explain to us what has necessitated this from the perspective of the government, in terms of our financial picture.”

Prime Minister Dean Barrow

“Well it is what the press release said, clearly we are going through some difficult times and the bottom line is though that a number of the assumptions that were made in common between ourselves and the bondholders when we last restructured have not proven to be valid or have not proven to be durable and so going forward we are convinced that we need a redo and this time the level of relief that we are looking for must be such that it will be absolutely sustainable even in the face of the vicissitudes that can overtake any economy.  So we are looking for a degree of relief that will mean that we do not have to worry in the short term.  In the medium term, even in the long term, no matter what circumstances might overtake the country.”

Reporter

“Sir, can you give us your perspective on what would be a successful restructuring effort should the bondholders be receptive?”

Prime Minister Dean Barrow

“As I said, we are looking for an outcome that will absolutely guarantee sustainability.”