Thread by @adelafiouni

-Paying #March20 EBs from reserves is WRONG
-We don’t earn markets’ trust by paying EBs from reserves
-We earn markets’ trust & support with credible debt sustainability & financial plan
-Restructuring is not a stigma
-Orderly restructuring is the fair & courageous decision
(1)

-Honouring our debt commitment & reputation is great
-Paying our debt with someone else’s money is not.
-Reserves are not government’s money
-Reserves are depositors’ money
-At a time of $ shortage: we should not use reserves to pay debt
-The priority is the population needs
(2)

-Any use of BDL reserves to pay for government debt or to support banks liquidity should be a temporary bridge emergency measure only
-It should be fully collateralised with assets or equity
-BDL needs to protect its balance sheet & its reserves from further depletion at any cost

-The government should appoint a financial & legal advisor immediately
-And start putting a credible restructuring & negotiating plan
-That treats all investors equally
-Favouring internationals over locals is pointless & unfair
-Internationals are professional investors & MtM