IMF Working Papers

Barbados’ 2018–19 Sovereign Debt Restructuring–A Sea Change?

By Myrvin Anthony, Gregorio Impavido, Bert van Selm

February 21, 2020

Download PDF

Preview Citation

Format: Chicago

Myrvin Anthony, Gregorio Impavido, and Bert van Selm. Barbados’ 2018–19 Sovereign Debt Restructuring–A Sea Change?, (USA: International Monetary Fund, 2020) accessed November 5, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines the causes, processes, and outcomes of Barbados’ 2018–19 sovereign debt restructuring—its first ever. The restructuring was comprehensive, featuring several rarely used approaches, including the restructuring of treasury bills, and the use of a retrofitted collective action mechanism. The debt restructuring has helped to set Barbados’ public debt on a clear downward trajectory. A sustained reform effort, maintaining high primary surpluses and ambitious structural reforms, will be needed to gradually reduce public debt from about 160 percent of GDP before the restructuring to the country’s 60 percent debt-to-GDP target.

Subject: Asset and liability management, Debt restructuring, Domestic debt, External debt, Financial institutions, Public debt, Treasury bills and bonds

Keywords: Barbados, Caribbean, CG debt, Debt, Debt exchange, Debt restructuring, Debt restructuring, Debt restructuring perimeter, Debt restructuring process, Debt sustainability, Debt sustainability consideration, Domestic debt, Exchange offer, Government debt, Long-term debt, NPV gain, Restructuring operation, Restructuring perimeter, Result, Short term, Short-term debt, SOE debt, Sovereign Debt, Sovereign Debt Restructuring, Sovereign Defaults, Treasury bills and bonds, WP

Publication Details

  • Pages:

    29

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/034

  • Stock No:

    WPIEA2020034

  • ISBN:

    9781513529967

  • ISSN:

    1018-5941

You May Also Be Interested In...

The Federal Democratic Republic of Ethiopia: First Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Federal Democratic Republic of Ethiopia

November 4, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024

Grenada: Technical Assistance Report-Systemic Risk Monitoring

November 1, 2024

Mexico: 2024 Article IV Consultation and Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Mexico

November 1, 2024