WAPA Revenue Bonds Suffer Third Downgrade In Less Than 60 Days

The vulture capitalists that snap up these types of bonds at pennies on the dollar are circling the Virgin Islands now that they've cleaned out Puerto Rico.

The day of reckoning is coming!

A time to get out, Alana33.

It's really sad for me to see the continuing deterioration of our islands and our way of life. While I'm ready to embrace a change, the VI will always be home and I'll always want the best for our islands. Unfortunately, I don't see things getting better, anytime soon. We've been on this road for decades.

We just don't have the type of quality leadership and expertise necessary to knuckle down and get it done.

The vulture capitalists that snap up these types of bonds at pennies on the dollar are circling the Virgin Islands now that they've cleaned out Puerto Rico.

The bonds are junk because no one has any faith that the WAPA will ever collect on their open receivables.

If they're such a great bargain, bust open your piggybank and buy, then you can be nice and tell WAPA they dont have to pay you back or better yet, I'm sure WAPA will sell you all their receivables at Par that you want

If they're such a great bargain, bust open your piggybank and buy, then you can be nice and tell WAPA they dont have to pay you back

(tu)

It is turning into an unsustainable situation, by the Govt, for the Govt. Health, safety, education and infrastructure spending only happens after the bloated Govt payroll has been met. Why do they think that it's OK to not pay the Govt WAPA bills? Why do we need 10,000 Govt employees for just 100,000 people?
I think we all should consider. plan B.

And what would be plan B?
Without gov jobs here what would the population do? Gov employment is another form of subsidy. Same as in Grece or former Soviet Easter block in Europe.

And what would be plan B?
Without gov jobs here what would the population do? Gov employment is another form of subsidy. Same as in Grece or former Soviet Easter block in Europe.

work for them selves? Create industries?

necessity is the mother of all invention, subsidy strangles necessity in it's cradle.

The main problem is the economy is almost exclusively based on tourism. The USVI produces little and exports even less. It's a microcosm of the world at large,...just too many people. The government has to employ so many because there are few other options. Of course, politicians spending what they don't have, doesn't help..........

The main problem is the economy is almost exclusively based on tourism. The USVI produces little and exports even less. It's a microcosm of the world at large,...just too many people. The government has to employ so many because there are few other options. Of course, politicians spending what they don't have, doesn't help..........

Nope, the economy is/was almost exclusively based on OIL.. with tourism being a lucrative second on STT...

now STT still has tourism and the oil is gone, that is the issue currently.. the USVI; IMO... NEEDS to focus more on tourism, stx isn't very leveraged right now.

oh, and it also needs to jump in with both feet on hemp production and other agriculturally lucrative projects.

there are not too many people and the government DOES NOT have to employ anyone.... its just easier to milk the system and thus: the government employee (especially when its SUPER easy to get a job down here if you have the right last name)..

Hell; I'm a government employee, I should know.

More problematic was the downgrade of VI general obligation bonds in late June. The cost of borrowing to balance the 2017 budget increased. Without the ability to borrow and make reasonable bond payments, the government will be forced to fire people, adjust employee benefit contributions to GERS, health insurance and such, and/or sell assets. Likely all of the above.

Borrowing to make payroll is a last ditch effort to sustain the status quo - and Mapp may not be able to avoid the consequences on his watch.

Sell the hospitals, pay WAPA and then sell WAPA.

I hope the feds get involved sooner rather than later. That's the most optimistic path.

Hedge funds lend money with an expectation of being paid. Junk bonds are risky though and VI bonds are definitely junk now.

Its all going to come crashing down soon.

Well,....if not too many people then too few jobs. The unemployment rate in the USVI is 11%. About twice the Mainland rate. Not tourism based? 80% of the USVI's GDP comes from tourism.

Well,....if not too many people then too few jobs. The unemployment rate in the USVI is 11%. About twice the Mainland rate. Not tourism based? 80% of the USVI's GDP comes from tourism.

That's now, 5 years ago the refinery (4th largest in the world) was still open, most governments couldn't restructure in that time & it takes even longer for the local economy to restructure, this government never will, it will spend itself out of existence now that the sugar daddy is gone.

I am a part of the restructuring of STX, I started a tourism based business & we need more.. there is so much room for growth for the motivated individual.. but when your motivation is sapped through handouts & the lack of "need" then you don't do much with your life do you?

USVI is the perfect example of why providing for people doesn't work.... aren't we like the #1 recipient of food stamps per capita?

Its all going to come crashing down soon.

Doom and gloom..Doom and gloom

I don't think its all going to come crashing down. People on this board are so negative.

Yes its bad and it will probably get worse. But I see a place with beautiful people, beautiful scenery, and great culture all under the US Flag. Things will turn around.

Eventually, these crooked politicians will get phased out and some young blood with new ideas will step in.

What about that artilce about OTEC wanting to come here. What about the recent article I read about a company proposing to supply power to WAPA through biomass. What about the same article mentioning more solar farms and wind farms.

And yes to hemp. Yes to medical. Yes to recreational.

Bring on the recycling. Encourage more industries to setup shop here (medical, technology, renewable energy). GIve them lucrative tax breaks and free land.

Bring on the sailing industry. Look at what BVI has. STT is right next door and STX could do more to encourage more $ailors to visit.

And the big one: agriculture!!! Use the treated wastewater to supplement irrigation needs. Start a territory wide campaign to encourage farming. Develop a way to make agricultural products availble throughout the territory (Norma H, Seaplane, etc). Look at how we can export surpluses to BVI.

We live an amazing place. Maybe not everyone sees things in positive light but I can assure you, if you think negative then that's what you will see.

I plan on doing my part. Slowly but surely. In due time...

More doom and gloom,......Zika is going to affect the economies of all Caribbean islands to some degree. Time will tell.

I've been here (STX) 5 years and I'm seeing slow but steady improvements, new eateries, towns getting cleaned up, New hotel The Fred, Caravelle hotel upgrade Limetree Bay. It's slow and steady but i do see us turning the corner. i would love to see STX be more sailor friendly. Some overnight mooring balls and collect fees to encourage charter boats to come down. About 2 years ago there was an article in the Avis from tourism working to attract boaters. i called Nicholson-Doty and VOLUNTEERED to help. I was told "No thanks, we don't need help" Haven't heard anything about boaters since the article. Green Cay does a great job of attracting visiting boaters and they treat them well.

I plan on doing my part. Slowly but surely. In due time...

Yes, I've been hearing that 'In due time' for 50 years. At some point you have to face reality and realize that the Unicorns are dead.

HAHAHAHAHAHA

LOL

Yeah u got me....NOT!!! HAHAHAH

WAPA just borrowed $33 MILLION from First Bank since they can't float any more bonds.

I plan on doing my part. Slowly but surely. In due time...

Yes, I've been hearing that 'In due time' for 50 years. At some point you have to face reality and realize that the Unicorns are dead.

Lots of unicorns in the Frederiksted area ;).. and I don't play PokeMon

WAPA just borrowed $33 MILLION from First Bank since they can't float any more bonds.

Well, at least they are confident enough to give them a loan?

Isn't that like, a "last ditch" move?

I'm sorry to say that while our islands are beautiful, what happens here is not. I've been waiting to for more positive changes as long as CruzianIron and it's disheartening to continue to see the decline. Our government has massive debt and it continues to mount.

Money continues to be frivolously, wasted, misspent, mismanaged, misappropriated. It's been going on for decades. The debt is not going to go away and it's compounded daily by the continuing poor decisions by our VI Government.

Look at all the government officials that have been convicted of crimes.
Then they resurrect themselves in another top job position?

Too many top paid administrators and senators that are unqualified for their positions. In our case, too much nepotism. Our basic services are jeopardized because they're poorly run and inadequate.

Can you imagine what our government pays in just interest rates on loans while they continue to raise rates and fees to keep our sinking ship afloat?

For all you "Johnny come latelys" (I use that word with no disrespect)
Life in the VI is not simpler. It's not all lazy beach days, rum and cokes and pina coladas. It is beautiful here but there a lot more involved so make your decisions wisely. Try to become part of the solution and vote!

And in 10 years or less the GERS will completely collapse. It already cannot be fixed.

The collapse is inevitable and no one is doing a damn thing about it.

toptop

I'm sorry to say that while our islands are beautiful, what happens here is not. I've been waiting to for more positive changes as long as CruzianIron and it's disheartening to continue to see the decline. Our government has massive debt and it continues to mount.

How often during the day do you interact with the government?

How about hte week?

month?

Year?

My interactions with them are very limited.. so they can suck all they want.

toptop

For all you "Johnny come latelys" (I use that word with no disrespect)
Life in the VI is not simpler. It's not all lazy beach days, rum and cokes and pina coladas. It is beautiful here but there a lot more involved so make your decisions wisely. Try to become part of the solution and vote!

yeah, sometimes its TOO MUCH lazy beach days and rum 'n cokes..I have to take a break and get shit done!

There's no money to do anything that is going to improve basic services.
1 barge working for St. John, out of 4. Just a myriad of issues that can't be resolved without more debt and ridiculous subsidies along with the bad decisions that have continued to amass over the decades.

And Mapp continues to live his lavish lifestyle along with his family, cronies and friends. By now, the weasel should have amassed frequent flyer miles.
Blah!