Opposition Ralph Thorne has blasted Government for its decision to borrow US$500 million to repay its debt to the International Monetary Fund (IMF), accusing the current administration of engaging in a costly “public relations exercise” at the expense of taxpayers.
Speaking at a press conference at the Opposition Leader’s Office in The City on Saturday, he described the move as “fiscally irresponsible”. He charged that the Government replaced a relatively low-interest IMF loan at four per cent with a bond offering at an interest rate of eight per cent, thereby exposing the country to further financial hardship.
“This is the first time in the history of this country that a Government is exiting an IMF programme by borrowing more money,” Thorne said. “In the 1980s, the Tom Adams government repaid the IMF with locally generated funds. The same was done under the Sandiford administration. This Government has taken a fundamentally different and dangerous route.”
He further questioned the role of White Oak Advisory, the international consultancy firm that advised Government during the borrowing process, demanding transparency on the fees paid to the firm. He recalled that White Oak previously received US$27 million in fees during Barbados’ 2018 debt restructuring, a figure he described as “excessive”.
“White Oak is back in the picture, and the Government must come clean and tell the people of Barbados what this firm is being paid this time around.
Why is it that White Oak can be paid millions, while the police and public servants in this country are left waiting for what they are owed?”
The Opposition Leader dismissed suggestions that the borrowing demonstrated economic strength, arguing instead that the Government was merely “postponing crisis” and shifting the burden onto future generations. He accused the administration of “inflating growth statistics” and manipulating GDP (gross domestic product) figures by counting inflation-driven price increases.
“The growth they boast about is artificial and inflationary. The poorest Barbadians know that this economy is not working for them. What we are witnessing is fiscal madness and a betrayal of the public trust.”
Thorne also criticised Government’s frequent invocation of “fiscal space” and reserves accumulation, arguing that these funds were not being used to benefit the people.
“If the economy is doing so well, why is there no money to pay the police, nurses and prison officers?. This Government claims to be building fiscal space, but all we see is greater hardship for workingclass Barbadians and greater profits for foreign consultants.”
(CLM)
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