Reproduced from the IMF Website – David, Blogmaster
December 9, 2020
- The Executive Board of the IMF concluded the fourth review of the IMF’s extended arrangement under the Extended Fund Facility (EFF) for Barbados. The completion of the review allows the authorities to draw SDR 65 million (about US$94 million). Access under the extended arrangement has been augmented by SDR 48 million (51 percent of quota, or about US$69 million) to help accommodate the shock.
- Despite the challenges posed on the economy by the pandemic, Barbados continues its strong implementation of the comprehensive Economic Recovery and Transformation (BERT) plan aimed at restoring fiscal and debt sustainability and increasing reserves and growth.
- The prolonged global coronavirus pandemic poses a major challenge for the economy, which is heavily dependent on tourism, and is expected to have a large impact on the balance of payments and the fiscal accounts.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the fourth review of the IMF’s extended arrangement under the Extended Fund Facility (EFF) for Barbados. The completion of the review allows the authorities to draw the equivalent of SDR 65 million (about US$94 million), bringing total disbursements to the equivalent of SDR 271 million (about US$390 million).
The four-year extended arrangement under the EFF was approved on October 1, 2018 (see Press Release No. 18/370). Including the augmentation approved by the Executive Board today, the extended arrangement is for an amount equivalent of SDR 322 million (about US$464 million).
Barbados continues its strong implementation of the comprehensive Economic Recovery and Transformation (BERT) plan aimed at restoring fiscal and debt sustainability and increasing reserves and growth. The prolonged global coronavirus pandemic poses a major challenge for the economy, which is heavily dependent on tourism, and is expected to have a large impact on the balance of payments and the fiscal accounts.
Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing Director and Acting Chair said:
“The Barbadian authorities continue to make excellent progress in implementing their Fund-supported Economic Recovery and Transformation plan and have swiftly responded to address the impact of the pandemic . Prospects for continued strong program performance are good, but downside risks will continue to pose challenges in the period ahead.
“A primary balance target of minus 1 percent of GDP for fiscal year 2020/21, revised down from a surplus of 1 percent at the time of the third review, is appropriate to accommodate worse-than-anticipated revenue losses and support spending on public health and social protection. The new fiscal target is financed by additional resources from international financial institutions, including a second augmentation under the Extended Fund Facility.
“The fiscal accommodation will be compensated by higher primary surpluses in the medium term to ensure achievement of the long-term debt target of 60 percent of GDP. Medium-term fiscal adjustment will be supported by continued reform of state-owned enterprises (SOE) to secure space for investment in physical and human capital. Transfers to SOEs need to decline through a combination of stronger oversight, cost reduction, revenue enhancement, and mergers and divestment. Pension reform and introduction of a fiscal rule will also support medium-term fiscal sustainability.
“Progress in restoring fiscal sustainability will further be safeguarded by a new central bank law aimed at limiting financing of the government and strengthening the central bank’s mandate, autonomy, and decision-making structures.
“A strong recovery from the global pandemic will hinge on accelerating structural reform, including improving the business climate and promoting economic diversification. Strengthening resilience to natural disasters and climate change will be key to long-term sustained economic growth.”
Flindt is back in business, the cakes are still as good as ever, left turn BEFORE the white royal westmoreland sign on the same left heading north on the highway, not the coast road, the one above….quaint little building, kinda cart roadish….
Have been watching for the past couple months a very beautiful tribute African youngsters are putting together for our ancestors stolen and brought across the atlantic and enslaved, it’s so out of this world as it emerges, am still trying to come to terms with the ingenuity, thought, care and creativity involved, while they are hard at work paying tribute and creating a beautiful monument that will resound across the earth, Barbados is trying to reenslave the descendants and survivors to cover up the billions of dollars they and the minority thieves robbed from the people and country over the last 30 years,…..good going, i’ll be sure these hardworking youngsters hear all about it..
But wait, Carsten is a white man? I thought you only supported black owned businesses.
The government shouldn’t have borrowed a cent. Let everyone go home, businesses shut and beg for PPE etc. I bet yuh we happy owing the bank for cars, airline tickets and accommodation and house though? Bajans head like um bad.
@ Enuff December 14, 2020 3:47 PM
So why were you cussing the previous administration left, right and centre for borrowing and fiscal bullying?
Remember the Credit Suisse loans, the SWT and NSRL?
But the previous administration made a cardinal mistake by not taking OSA’s timely advice to ask the IMF for a financial bailout just like how the current one has done.
Uh huh cuz the two are similar. Wunna continue to underestimate the economic impact of Covid. You get in goood yuh heeeaaaar!
“But wait, Carsten is a white man? I thought you only supported black owned businesses”
Northern…I didn’t say i bought the cake, it was offered to me and i ate it, I said that Flindt is back in business and the cake is still really good….do you know how expense those things are and if someone wants me to eat expensive cake, who am i to say no, a girl has to show some manners you know….and yes, i go out of my way to shop black, because it’s the right thing to do since this government pulled a nasty on the people, just like the last government and helped crooks rob the treasury and pension fund, so the right thing to do is try to uplift the black people who do business…
Northern….life is strange, some time ago someone made friends with an acquaintance of mine, and only found out recently that this acquaintance is a die hard racist, they were appalled to find out, so now they know i got racist acquaintances too, am a friendly gal…
We can only hope the people in US get to move on now, despite 300,000 deaths….apparently all the drama has offically ended, today is the 14th..
Miller….don’t tell me that repulsive Fowl Enuff is trying to convince yall that Mia is doing the people some favor by digging a bigger and deeper debt trap that she fully expects Black people to repay, ya should ask the fowl when she is going to lock up those who stole the billion dollars in VAT and those thieving hoteliers/employers trying to get away with not paying workers severance, and the DLP crooks who also helped rob the country and people……the know it all should have an answer…
Beg or BORROW
Barbados appears close to securing $200 million in concessional funding from the World Bank after 27 years of being cut-off from such financing.
“Beg or BORROW.”
wuhloss…yardfowls got even more to celebrate…more debt, deeper wider debt trap, wonder who’s going to repay all of that, the majority better get with the program, they don’t owe anyone anything, stop the nationalism and patriotism bullshit (it has long been a trap that too many black people are eager to fall into) or yall and ya children, grandchildren future generations will be repaying these loans, while the usual suspects continue TIEFING everything….let them go to hell, and find a way to pay back what they stole…they are the thieves, they always got a scam ready, let them use a few to find the money…..
looks like the cliff restaurant lied to these workers, expose them worldwide, they don’t intend to pay severance, they were the first to try to get away with not paying workers in March, they had some kinda inside infor about what was coming, these crimes against workers and their families should be indictable and carry 20 and 25 year prison sentences….
“Marlon MaddenPublished on
December 15, 2020
Months after being promised severance payments from the National Insurance Scheme (NIS), dozens of former workers at the Cliff Restaurant are yet to be paid and vowed continued protests outside the benefits agency.
On Monday, placard-bearing ex-workers gathered outside the Sir Frank Walcott Building at Culloden Road to protest under the watchful eyes of police.
The group’s spokesman, Jerome Farley, later told Barbados TODAY that they were simply fed up of the “run around” they were being given.
“We were too silent for too long. We need our money,” said Farley.
He explained that they have been promised payment from the NIS since August when they delivered their severance claims there, but to date, they are still awaiting this promise to be fulfilled although he was aware of several workers from other businesses who handed in their forms since they did have already received their severance payments.
Farley said: “If we don’t get word by tomorrow we will be back at the Cliff and the NIS on Thursday to protest again,”
The workers were laid off in March from the upscale St James restaurant, but it was in July that they were informed they were made redundant.”
“Barbados does not again end up with an unsustainable mountain of debt”
The author speaks as though the debt restructuring magically made the Nation’s debt sustainable? Maybe they should examine the expenditures which are producing that debt, and the associated cash flow issues.
Only in barbados if yuh steal a 65 cent of loaf bread yuh would be hauled before a judge forthwith and sentenced
Onlyin Barbados the big hoteliers get a free pass from justice when they steal from govt and the workers
Along with govt handing over the treasury to these one armed bandits in back taxes owed
Then if that was not enough govt straps the losses owed to the treasury known as debt to the lowly citizens shoulders
This is who we are
Maybe we should examine the underlying reasons for the debt, successive governments pandering to unbridled conspicuous consumption by the population. What did Michael Jackson sing about?
I have heard the nonsense about conspicuous consumption before. It is now a mantra and it seems to explain everything. Ignore it.
The author has nothing sensible to say. Maybe he (if it is a he) can explain how conspicuous consumption (current account deficit) will impact government debt, apart from equal nonsense about foreign reserves and even that is contentious.
We are in the position we are in because of poor management of the economy from independence to now.
What is an economy?
âThe production, consumption, and distribution of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic system.â
You always know everything.
Here is another for you:
âAn economy is the large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated.â
A pity when you are on Michael Howard Facebook page and he posits the same vire you are as quiet as a Rh mouse. If you continue the blogmaster will just lift some of your comments to support.
Talk about restructuring barbados economy is an exercise in futility
The big wigs who control like it this way as long as there end is sweetened by govt hands and the poor pays the debt
The talk of restructuring would be an elusive dream as elusive as turning sawdust into gold
Any thoughts. I believe in having a universal minimum wage and then sectors can do more then so be it.
Disagree with first section. Agrees with the second.
DofBU 6:49 a.m.
“I feel each sector should have a national minimum wage which reflects its productivity. You don’t want a sector which has low productivity to have a minimum wage which would be inconsistent with that productivity.
“It’s just not a matter of sitting down in a meeting and talking. People have to research wages, productivity and employee preferences on what the minimum wage is. It should not be a political wage; it has to rely on research because these other matters are intimately interwoven with wages, unemployment and productivity,” Howard added.
Every decision is soaked in the political in Barbados, this is our problem. it goes without saying a minimum wage must be driven by the numbers and how we want to drive productivity etc. Howard is on point.