Once again, Antigua is hitting the headlines for all the wrong reasons.

Following the collapse of the Stanford Empire, a desperate plea for help to the IMF, and the more recent implosion of the Antigua Barbuda Investment Bank, the Government of Antigua and Barbuda has now had to return once again, cap in hand, to one of the most powerful and quietly influential nations on Earth.

To save its blushes, Chinese officials have benevolently agreed that Antigua & Barbuda can delay payment of several major outstanding loans granted in between 1988 and 1992.

Ironically, these loans were interest free, but even then Antigua could not muster a single Yuan in capital repayment.

Of course, the word "default" has been expertly manicured to become "re-scheduling".

Antigua & Barbuda is master at re-scheduling or, in simple terms, non-payment of its debt. Remember, this is a country that is happily prepared to "compulsorily acquire" (rather than "expropriate") the private property of international investors, also without payment of compensation.

While local pundits continue to wonder why new investors steer well clear and why the country continues to rely on hand-outs, for the people of Antigua, delaying a non-interest bearing loan repayment just means postponing the accruing debt for later generations to have to honour. In certain quarters, this is considered a political achievement.

So what was the purpose of these loans?

Typically, they were intended for construction projects: the Multi-Purpose Cultural Centre, Big Creek Bridge and the Grays Green Gutter.

The Multi-Purpose Cultural Centre construction obligation of US $3,740,000, which was due to be paid by 31 July 2011, has been deferred to 2016 and will run to 2026.

Debt payment for the Big Creek Bridge of Five Million Renminbi Yuan was to be spread between 2004 and 2013. Now, it will extend from 2019 to 2038.

Obligations have also been postponed for repayment of loans intended for the construction of the Gary's Green Gutter and additions to the Multi-purpose Cultural Centre. The 20 Million Renminbi Yuan scheduled for return between 2002 to 2012 has been re-scheduled from 2017 to 2027.

It is interesting to note that meanwhile, during this spell of ambivalent debt forgiveness, several curious investments and potential regional security developments have occurred: China has provided Antigua with a new 30 mega-watt power plant and has agreed to build a new 16,450 sq. metre airport terminal facility on and for Antigua.

At the opening of this new power plant which took place a few days ago, a further announcement was made that China will also provide a 28 million RMB loan for the upgrade of the substation which is required to bring the new power plant into the national grid.

The terms disclosed by a separate announcement in the Antiguan press that China has agreed to replace the existing airport terminal are that China will provide design, construction, machinery, equipment, materials, technicians and workers, while Antigua will remove any obstacles, including import tax, and provide all necessary permits.

To this end, The People's Republic of China has granted a new US $50 million Concessional Loan to Antigua, of which $45 million will be applied to the new airport facility, while US $5 Million will be used for "community assistance".

We all witnessed what "debt forgiveness" followed by increased lending by R. Allen Stanford has done for and to Antigua's economy and standing.

Invest in Antigua's sovereign debt? Maybe not!

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