Barbados became the first country in the world to decide to implement such a bond. Experts expect that a similar step will soon be taken by dozens of other countries that have recently struggled with the covid-19 pandemic. The only thing to eat should be the hundreds, their economies are largely dependent on tourism. The agency informed about it Reuters.
The Barbados bond with a pandemic clause has a set maturity of fifteen years. However, due to the pandemic, Barbados suspended its payment for two years. Such a step can be resorted to in Barbados immediately twice before the time of its maturity.
The president of the Barbados government, Mia Mottleyov, believes that if this option were available in 2020, many countries around the world could easily face a huge financial crisis. They would not have faced such a debt crisis, said the Reuters agency.
The Barbados bond, however, allows for a similar suspension of bond payments even for the most extreme of disasters. Between you, the tropic will bounce, sink or float away. Barbados thus largely copied the construction of its bond from Grenada, which had a similar one in 2015. However, the element of the pandemic is completely unique in the context of the entire world.
In order for the maturity of the Barbados bond to be suspended, the World Health Organization WHO would have to formally declare a pandemic, and Barbados would have to use the knowledge of one hundred public resources to combat the pandemic.
Experts on debt and banking instruments believe that the Barbados bond is a great milestone for the whole world. It is such a vacation for the national debt, said Sui-Jim Ho of Cleary Gottlieb to Reuters.
The new Barbados bonds also have an ecological feature. Thanks to the experience of The Nature Conservancy and the American Development Bank, Barbados can now borrow money on the market much cheaper, and thus count millions of dollars. These pensions m Barbados bond to the protection and restoration of the Caribbean coast.
The Mottleys of Barbados estimate that the moe around Barbados is 430 krt vt not its land. According to him, kilos of clean water are also essential for tourism, which accounts for more than 40 percent of the national GDP.
We hope that other countries will soon follow Barbados, said the general editor of TNC Slav Gatchev with regard to the ecological features of the new form of bond.