Oh No Dr. Worrell
A Barbados government economic adviser has rejected a suggestion by former Central Bank Governor Dr. Delisle Worrell that Barbados still faces the threat of devaluation down the road and that a different approach needs to be taken to debt restructuring with external creditors.
Avinash Persaud was speaking in an interview with Starcom Network News after Dr. Worrell, who is now an advisor to external creditors, called for a new deal with the external bond holders.
Dr. Worrell says the external creditors have sent a proposal to Prime Minister Mia Amor Mottley to consolidate a five US dollar bond into a single medium term issue, claiming that this would defer repayment of 350 million US dollars of debt and ease future devaluation pressure by putting off a big outflow of foreign exchange reserves.
But Mr. Persaud dismisses the claim of a lingering devaluation threat as ridiculous, especially when linked to the debt restructuring proposal.
Mr.Persaud describes Dr. Worrell’s comments as trying to negotiate by press release while insisting that on his part there will be no negotiating in the media. But he did make the point that all stakeholders including domestic and external creditors are being asked to make some sacrifice in helping Barbados recover.