The Bankwatch

Tracking the consumer evolution of financial services

St Kitts sets the model for debt restructuring

Simultaneously with Greece, St Kitts with a similar debt overhang, negotiated a restructuring (finance parlance for a debt reduction) of 50% reduction.  This was all done quietly and after a few months negotiation. 

The financial crisis has far reaching consequences, yet the consequences are somehow more obvious with such small countries than with large.

A proper debt restructuring | ft.com

Basseterre, St Kitts: The Government of St Kitts and Nevis announced  today that the
exchange offer launched on 27 February 2012 has received the overwhelming support of
its creditors.

… …

The  New Discount Bonds, which are to be partially guaranteed by the Caribbean Development Bank, entail a 50% reduction in face value. The balance is to be repaid over 20 years, with coupons set at 6% for the first four years, stepping down to 3% thereafter

Written by Colin Henderson

March 19, 2012 at 21:36

Posted in Uncategorized

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