Dominica government pursues debt restructuring

Saturday, January 24, 2004

ROSEAU, Dominica: A team from the Ministry of Finance and Planning left Dominica earlier this week for consultations with Dominica's bilateral and commercial creditors in St. Lucia, Barbados and Trinidad and Tobago. Similar consultations were also held with domestic creditors in Dominica last week. The team is being assisted by an internationally-recognized financial adviser and a leading international law firm from the United States. 

These consultations are in pursuit of the debt restructuring strategy formally announced by the late Prime Minister, Pierre Charles at a meeting with donors and creditors that took place in Barbados on December 17th 2003. 

By the end of March 2004, the Government of Dominica hopes to have completed its debt restructuring negotiations and to have agreed revised terms with all its creditors. 

On December 10th 2003, the Government of Dominica announced its intention to seek the cooperation of its creditors in the restructuring of the country's public debt as the next stage of its ongoing programme of economic stabilization and adjustment. 

Dominica's external debt stock is now over 100% of the country's Gross Domestic Product (GDP), a level that is unsustainable given the current economic circumstances of the country. The Eastern Caribbean Central Bank's benchmark is 60%.

The Government has embarked on this debt restructuring exercise with the intention of improving the cash flow position so that will be in a better position to be able to finance its programmes. 

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