Barbados: Third Review Under the Extended Arrangement, Requests for Augmentation of Access, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Barbados
IMF Staff Country Reports, June 8, 2020
Source details
- Canonical URL
- Barbados: Third Review Under the Extended Arrangement, Requests for Augmentation of Access, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Barbados
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Bibliographic details
- Published: June 8, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513546711.002
Overview and purpose
- Focus: Barbados’ Third Review Under the Extended Arrangement, Requests for Augmentation of Access, and Modification of Performance Criteria.
- Program aim: Implementation of the comprehensive Economic Recovery and Transformation plan to restore fiscal and debt sustainability and increase reserves and growth.
- Publication date: June 8, 2020.
Impact of the global coronavirus pandemic (COVID-19)
- The ongoing global coronavirus pandemic poses a major challenge for the economy, which is heavily dependent on tourism.
- Expected impacts:
- Large impact on the balance of payments.
- Large impact on the fiscal accounts.
State-owned enterprise (SOE) reform
- SOE reform remains an essential element of Barbados’ economic program.
- To secure fiscal space for investment in physical and human capital, transfers to SOEs need to decline after the global coronavirus pandemic through:
- Stronger oversight of SOEs.
- Cost reduction.
- Revenue enhancement.
- Mergers and divestment.
Central bank law and fiscal sustainability
- Progress in restoring fiscal sustainability must be safeguarded by adopting a new central bank law that:
- Limits the central bank’s financing of the Government to short-term advances.
- Strengthens the central bank’s mandate, autonomy, and decision-making structures.
Structural reforms and business climate
- A strong recovery after the global pandemic will depend on accelerating structural reforms.
- Identified needs to improve the business climate include:
- Establishing a credit registry.
- Establishing a credit collateral registry.
- Broadening the types of eligible collateral to facilitate access to credit.
Subject tags and keywords (as provided)
- Subject: COVID-19, Credit, External debt, Fiscal policy, Fiscal stance, Health, Money, Public debt
- Keywords: Barbados economic reform, Caribbean, coronavirus pandemic, COVID-19, CR, Credit, executive board discussion, Executive Board discussion, Executive Board of IMF, Fiscal stance, Global, ISCR, program implementation, steadfast commitment
Content in this bundle
- 1brbea2020001 — Executive Summary