Updated: 30-08-2024 - 12:00PM 6 9 CLOSED
Oct 19, 2018
On October 14, 2018 the Government of Barbados (“GoB”) announced that its proposal to exchange Barbados-dollar denominated debt for new instruments with different repayment terms was accepted by its domestic creditors.
FirstCaribbean International Bank Limited (the “Bank”) holds approximately US$445 million in GoB Barbados-dollar denominated debt instruments that will be exchanged for new Barbados-dollar denominated debt instruments with different repayment terms. The Bank’s Q3/18 expected credit losses of US$46 million for these exposures re?ected our expectation for a government debt restructuring based on information available at the time.
The Bank also holds approximately US$30 million in US-dollar denominated GoB debt instruments for which a speci?c restructuring plan has not yet been announced, and approximately US$20 million in GoB US-dollar denominated debt instruments that is not expected to be included in the GoB’s comprehensive debt restructuring plan.
We are currently revising our estimate of the expected credit losses as a result of the exchange offer that was accepted by the domestic creditors, and anticipate that incremental expected credit losses will be recognized in our Q4/18 results set to be published on November 29, 2018.
Our Tier 1 and Total Capital ratios will remain strong and in excess of applicable regulatory requirements after recognizing the incremental expected losses noted above.
Source:
The Trinidad and Tobago Stock Exchange Limited
19 October, 2018