IMF Staff Concludes Visit to Barbados
IMF News, February 12, 2019
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Bibliographic details
- Published: February 12, 2019
Mission overview and timeline
- Mission led by Bert van Selm visited Bridgetown from February 5–8, 2019, at the request of the Government of Barbados.
- A concluding meeting was held with Prime Minister Mottley in Washington D.C on February 11, 2019.
- The mission discussed implementation of Barbados’ Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF).
- The team plans to return to Barbados in May to conduct discussions for the first review under the EFF.
Key findings and program performance
- Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program.
- All indicative targets for end-December under the EFF have been met.
- Specific targets met:
- The program target for Net International Reserves was met by a wide margin.
- The target for the Central Bank of Barbados’ Net Domestic Assets (NDA) was met by a wide margin.
- The target for the primary surplus for end-December 2018 was met by a wide margin.
Structural and legislative progress
- Good progress has been made in implementing end-December 2018 structural benchmarks under the EFF.
- Two key pieces of legislation were adopted in early 2019:
- The Public Financial Management Act
- The Town and Country Planning Act
Fiscal outlook and budget planning
- Preparation of the budget for FY2019/20 targeting a primary surplus of 6 percent of GDP is well underway.
- Measures contributing to the FY2019/20 primary surplus target include:
- Full year effects of reforms set in motion during the current (2018/19) fiscal year.
- Introduction of several new taxes.
- Ongoing streamlining of public sector work force at state-owned enterprises.
- A detailed assessment of the budget will be made when it is finalized.
Debt restructuring and creditor engagement
- Progress by the authorities in furthering good-faith discussions with external creditors is welcome.
- Continuing open dialogue and sharing of information will remain important in concluding an orderly debt restructuring process.
Official statement excerpt
- “Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program.
- “All indicative targets for end-December under the EFF have been met. The program target for Net International Reserves was met by a wide margin, as was the target for the Central Bank of Barbados’ Net Domestic Assets (NDA). The target for the primary surplus for end-December 2018 was also met by a wide margin.
- “Good progress has been made in implementing end-December 2018 structural benchmarks under the EFF. Two key pieces of legislation—the Public Financial Management Act, and the Town and Country Planning Act—were adopted in early 2019.
- “Preparation of the budget for FY2019/20 targeting a primary surplus of 6 percent of GDP is well underway. Full year effects of reforms set in motion during the current (2018/19) fiscal year, including the introduction of several new taxes and ongoing streamlining of public sector work force at state-owned enterprises, should help achieve this target. A detailed assessment of the budget will be made when it is finalized.
- “Progress being made by the authorities in furthering good-faith discussions with external creditors is welcome. Continuing open dialogue and sharing of information will remain important in concluding an orderly debt restructuring process.
- “The team is looking forward to return to Barbados in May to conduct the discussions for the first review under the EFF and would like to thank the authorities and the technical team for their openness and candid discussions.”
IMF media contact
- MEDIA RELATIONS
- PRESS OFFICER: Randa Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
IMF Staff Concludes Visit to Barbados — Press Release No. 19/38; February 12, 2019.