Above: Parliament in Bridgetown (CJ Photo)
By the Caribbean Journal staff
Moody’s Investors Service’s recent downgrade of Barbados’ debt to junk status was “no surprise” to the country’s Ministry of Finance, Minister Chris Sinckler said in a statement.
Sinckler said the action was generally expected, in light of ratings firm Standard & Poor’s decision to downgrade the country’s credit to junk over the summer.
“Naturally, the continued weak global economic recovery, particularly among our largest trading partners in the USA, UK and most of CARICOM, has worked to compound the negativity of an already difficult economic situation, which heavily undermined Barbados’ prospects for a speedy recovery in growth,” he said. :And, in spite of what we have heard, and will continue to hear, the knock-on effects of this environment on our fiscal and economic situation remain clear and unmistakable.”
Moody’s had cited two main reasons for the downgrade; “continuing lackluster economic performance” and “ongoing deterioration in the government’s debt metrics.”
Sinckler urged Barbadians to “continue to stay the course on our fiscal consolidation programme, seek to improve our levels of productivity, and move ahead hastily with our programme for restructuring the Barbados economy.”