BRIDGETOWN, Barbados, CMC – A delegation from the Worldwide Financial Fund (IMF) Wednesday mentioned it had reached a staff-level settlement with the Barbados authorities that would lead to US$57 million in funding after discussing the implementation of the island’s Financial Restoration and Transformation (BERT 2022) plan, supported by the IMF beneath the Prolonged Fund Facility (EFF).
The delegation, headed by Michael Perks, ended its seven-day go to right here on Wednesday. It additionally mentioned the implementation of reform measures beneath the Resilience and Sustainability Facility (RSF) association.
“Following productive discussions, the IMF group and the Barbadian authorities reached a staff-level settlement on the completion of the fourth opinions of the EFF and the RSF preparations with Barbados,” Perks mentioned.
He mentioned the settlement is topic to approval by the IMF Government Board, which is predicted to think about the opinions in December.
“The completion of the opinions will enable the authorities to attract the equal of about US$19 million beneath the EFF association and about US$38 million beneath the RSF association,” he added.
Perks mentioned that between January and September this yr, the Barbadian economic system grew by an estimated 3.9 p.c yr over yr, pushed by dynamism within the tourism and development sectors.
He mentioned that whereas Hurricane Beryl brought about vital harm to some coastal infrastructure and the fishing sector, its macroeconomic impression is predicted to be average, partially as a result of it occurred throughout the off-peak vacationer season.
“Inflation continued to sluggish with the easing of worldwide commodity costs and decrease home service costs, offsetting increased costs of specific home meals and agricultural merchandise and rising freight prices.
“The exterior place strengthened additional, with the present account deficit narrowing to 5 p.c of gross home product (GDP) by means of September, down from 9.5 p.c of GDP throughout the identical interval in 2023.”
Perks mentioned that worldwide reserves remained ample at US$1.6 billion on the finish of September, equal to round seven months of imports, persevering with to assist the alternate price peg.
“The near-term financial outlook stays constructive, however Barbados remains to be weak to world shocks and pure disasters, as demonstrated by the impression of Hurricane Beryl,” Perks mentioned, including that program efficiency stays robust.
“All quantitative efficiency standards and indicative targets for the fourth overview of the EFF had been met. Having comfortably met the first surplus goal throughout the first half of the fiscal yr 2024/25, the authorities are on monitor to fulfill the end-year goal of three.8 p.c of revised GDP.”
Perks mentioned public debt declined to round 105 p.c of revised GDP by September 2024, and the authorities stay firmly dedicated to bringing debt right down to 60 p.c of GDP by fiscal yr 2035/36.”
“The Barbadian authorities proceed to advance structural reforms, supported by technical help from the Fund and improvement companions. Key structural benchmarks had been met, together with measures to strengthen tax and customs administration, enhance public monetary administration, and improve public funding and procurement.
“Efforts envisaged within the BERT plan to strengthen progress and the enterprise surroundings are additionally progressing,” Perks mentioned, noting that the federal government is making good progress with its bold climate-policy agenda, supported by the RSF association.
He mentioned a brand new Electrical energy Provide Invoice has been tabled in Parliament. The invoice goals to reinforce competitors within the electrical energy market and encourage native participation in renewable vitality funding.
“To safeguard monetary stability and financial resilience, the Central Financial institution of Barbados has adopted a technique for constructing its capability to watch and assess local weather change dangers.
“The authorities additionally proceed to advance efforts to mobilize local weather finance, supported by the IMF and different improvement companions, together with the brand new debt-for-climate conversion, which is able to generate financial savings for upfront inexperienced funding to reinforce water provide and resilience,” Perks mentioned.
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