Barbados' 2018-19 Sovereign Debt Restructuring-A Sea Change?

30 Pages Posted: 18 Mar 2020

See all articles by Myrvin Anthony

Myrvin Anthony

International Monetary Fund (IMF)

Gregorio Impavido

International Monetary Fund (IMF); World Bank

Bert van Selm

International Monetary Fund (IMF) - Middle East and Central Asia Department

Date Written: February 2020

Abstract

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.

Keywords: Domestic debt, Sovereign debt restructuring, Financial crises, Balance of payments, Public debt, Sovereign Debt, Sovereign Defaults, Sovereign Debt Restructurings, Barbados, WP, debt restructure, treasury bill, NPV, government debt, debt instrument

JEL Classification: F34, G15, H63, E01, E62, G21, E52

Suggested Citation

Anthony, Myrvin and Impavido, Gregorio and van Selm, Bert, Barbados' 2018-19 Sovereign Debt Restructuring-A Sea Change? (February 2020). IMF Working Paper No. 20/34, Available at SSRN: https://ssrn.com/abstract=3555905

Myrvin Anthony (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Gregorio Impavido

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

HOME PAGE: http://www.imf.org

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Bert Van Selm

International Monetary Fund (IMF) - Middle East and Central Asia Department ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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