Government will Borrow From Itself to Cover B.I.S.L. Debt
The decision handed down by the C.C.J. two years ago disparaged the Barrow administration, describing the appropriation of the registries as, “constitutionally immoral and failing to meet the standards set for compliance with the value of the rule of law”. Furthermore, it continued to criticize the absence of good faith, fairness, and practicality exercised by the previous government. While B.I.S.L. sought a hefty sum in return, the maximum possible damages, the discounted settlement represents thirty-nine cents of every dollar collected by government from the registries during a seven-year interval.
Prime Minister John Briceño
“B.I.S.L. was asking for as much as, if we were to proceed going back to court and going all the way back to the I.C.J., we could see a potential settlement as high as hundred and eighty-plus million dollars. The interest rate is going to be running around, the interest is going to be around seventeen thousand dollars per day and we cannot afford, in good conscience, as a country, in good conscience, to continue to go down this road. And we felt that we had a pretty good, a reasonable settlement with the officials of B.I.S.L. I wish we don’t have to pay but the reality is that pay we must.”
Reporter
“In the cabinet briefing, first it’s a steeply discounted settlement. When people hear thirty-eight million U.S., they start to pull their hair out because the country is in such hard times. But are you able to speak about B.I.S.L. as a going concern since the government owns it and has been earning money for the past seven years?”
John Briceño
“Well if there is an upside to it and the government could have gone around a different way, if they wanted to take over the B.I.S.L. Certainly if we were in government we would have done it differently. But by strong-arming and illegally acquiring this asset, the damage that it does to us as a country is incalculable. We felt it’s important to be able to get it over quickly. Cabinet agreed to the terms last week Friday, today we signed the settlement deed and then on Wednesday we go to the house to be able to vote, to approve the settlement and also the supplementary budget to be able to pay them off. I think it’s sixty days, I think we have until the first of November to pay them off in full.
Reporter
“Where are you going to get the money?”
John Briceño
“We are going to get it from, it’s easier for government to borrow from itself than to be able to pay the six percent that the court mandates you to pay. So government pays three and a half percent so it’s a no-brainer.”
