Barbados Clashes With Creditors in Talks to Cut Greece-Like Debt

Barbados’ prime minister is butting heads with creditors over how to cut one of the world’s largest sovereign debt loads, creating a sticking point in the year-long negotiations to restructure the Caribbean nation’s defaulted dollar bonds, Bloomberg News reported. Talks with foreign creditors have dragged on since last June, when Prime Minister Mia Mottley said she would restructure the island’s “unsustainably high” debt burden. While both sides said they are open to continued negotiation, they appear far from consensus. A committee of creditors, who hold 55% of outstanding dollar debt, said Wednesday that they plan to unanimously reject a government proposal to exchange defaulted bonds for new debt unless the two sides negotiate together. Read more