‘Scrutineering’ The Financial System

Submitted by the People’s Democratic Congress

Central Bank of Barbados

Income lending in Barbados only takes place when persons, businesses and other social entities – on the basis of oral/written agreements – lend portions of their incomes/payments/transfers (expressed in dollar terms) to one another, or in some cases, to the government – on condition that these latter repay such portions of income/payments/transfers, with more of the same, at whatever times in the future.

This is some thing that happens on a daily basis in Barbados, and whether these loans are drawn from their own internal personal accounts, or from their own external institutional accounts (banks, credit unions, etc.), this type of income lending is non-institutional in nature, and does not normally involve interest charges. Also, the old su su or the meeting turn is a form of such lending.

Whilst it is true that this form of lending can some times be exceedingly risky and can be fraught with actual legal, financial and physical challenges, it is this type of lending that does a lot to stimulate a decent level of business and debt clearing activity in Barbados, though it does a little or nothing still to offset the very exceedingly high cost of use of money and the very high cost of borrowing in this country.

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