Editing Barbados (section)

=== Sovereign default and restructuring ===

By May 2018, Barbados's outstanding debt had climbed to {{US$|7.5 billion}}, more than 1.7 times the country's [[GDP]]. In June 2018 the government defaulted on its sovereign debt when it failed to make a coupon on [[Eurobond (international)|Eurobond]]s maturing in 2035. Outstanding bond debt of Barbados reached {{US$|4.4 billion}}.<ref>{{cite web |url=http://cbonds.com/news/item/1014317 |title=Barbados announced a technical default on coupon of Eurobonds with maturity in 2035 |website=cbonds.com |access-date=10 June 2018 |archive-url=https://web.archive.org/web/20180612092443/http://cbonds.com/news/item/1014317 |archive-date=12 June 2018 |url-status=dead}}</ref>

In October 2019, Barbados concluded restructuring negotiations with a creditor group including investments funds [[Eaton Vance|Eaton Vance Management]], [[Greylock Capital Management]], Teachers Advisors, and Guyana Bank for Trade and Industry. Creditors will exchange existing bonds for a new debt series maturing in 2029. The new bonds involve a principal "haircut" of approximately 26% and include a clause allowing for deferment of principal and capitalisation of interest in the event of a natural disaster.<ref>{{cite web |title=Barbados reaches debt restructuring deal with creditors |url=https://www.latinfinance.com/daily-briefs/2019/10/21/barbados-reaches-debt-restructuring-deal-with-creditors |website=latinfinance.com |date=21 October 2019 |access-date=17 December 2019 |archive-date=17 December 2019 |archive-url=https://web.archive.org/web/20191217214629/https://www.latinfinance.com/daily-briefs/2019/10/21/barbados-reaches-debt-restructuring-deal-with-creditors |url-status=live }}</ref><ref>{{cite web |title=Barbados completes debt restructuring and Lebanon facing growing risks |url=https://ihsmarkit.com/research-analysis/capital-markets-weekly-barbados-completes-debt-restructuring.html |website=ihsmarkit.com |date=25 October 2019 |access-date=17 December 2019 |archive-date=17 December 2019 |archive-url=https://web.archive.org/web/20191217214627/https://ihsmarkit.com/research-analysis/capital-markets-weekly-barbados-completes-debt-restructuring.html |url-status=live }}</ref>