IMF Staff Concludes Visit to Barbados

IMF News, July 13, 2018

Source details

Press Release No. 18/291
Date: July 13, 2018
IMF team led by Bert van Selm visited Bridgetown July 2–12 to discuss IMF financial support for the Government of Barbados’s Economic Recovery and Transformation plan.
End-of-Mission press releases convey preliminary findings after a visit; the views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
This mission will not result in a Board discussion.

The Barbadian authorities, in close consultation with their social partners, are taking effective steps to address current economic vulnerabilities.
Fiscal consolidation alongside a comprehensive debt restructuring exercise is critical for:
- restoring debt sustainability
- restoring policy credibility
The authorities’ revised budget for 2018/19, approved by Parliament on June 11, is described as a decisive step in the right direction.
The budget targets a primary surplus of 6 percent of GDP.

A second phase of measures will be needed to achieve the 6 percent of GDP primary surplus target; this next phase will focus on reducing expenditures by:
- improving the efficiency and effectiveness of public services
- reducing government transfers to state-owned enterprises by reviewing user fees
- exploring options for mergers
- providing stronger oversight

Progress in good-faith discussions with domestic and external creditors is welcome.
Continuing open dialogue and sharing information will remain important in concluding an orderly debt restructuring process.

Significant progress was made during the IMF staff visit on the plan that could underpin financial support from the IMF.
On its return to Washington the team will continue to analyze the Government’s comprehensive reform program.
The IMF team will remain closely engaged with the authorities in the coming weeks.
The team expressed thanks to the authorities for open and candid discussions and looks forward to building on this engagement.

Source: IMF press release dated July 13, 2018.