{
  "title": "IMF Executive Board Approves US$113 million under the Extended Fund Facility and US$189 million under the Resilience and Sustainability Facility for Barbados",
  "publication": "IMF News, December 7, 2022",
  "sourceUrl": "https://www.imf.org/en/news/articles/2022/12/07/pr22417-barbados-imf-executive-board-approves-usd113m-under-eff-and-usd189m-under-rsf",
  "canonical": "https://www.imf.org/en/news/articles/2022/12/07/pr22417-barbados-imf-executive-board-approves-usd113m-under-eff-and-usd189m-under-rsf",
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  "summary": "IMF Executive Board Approves US$113 million under the Extended Fund Facility and US$189 million under the Resilience and Sustainability Facility for Barbados",
  "publishDate": "2022-12-07",
  "sections": [
    {
      "heading": "Program approvals and financing",
      "content": "- Approved arrangements:\n  - Extended Fund Facility (EFF): 36-month arrangement in the amount equivalent to SDR 85.05 million (about US$113 million).\n  - Resilience and Sustainability Facility (RSF): arrangement in the amount equivalent to SDR 141.75 million (about US$189 million).\n- Purpose: to maintain and strengthen macroeconomic stability, support the structural reform agenda, and increase resilience to climate change."
    },
    {
      "heading": "Economic context and recent performance",
      "content": "- Barbados has implemented a comprehensive Economic Recovery and Transformation (BERT) plan and completed a 2018-22 EFF.\n- Despite global and regional economic shocks, Barbados has pursued fiscal consolidation, comprehensive debt restructuring, and structural reforms that restored macroeconomic stability in 2018 and 2019.\n- The economy is starting to recover from the COVID-19 pandemic, but risks remain elevated due to:\n  - Higher global commodity prices pushing up inflation.\n  - Exposure to climate change and natural disasters for the tourism-dependent economy.\n  - Global coronavirus pandemic and Russia’s invasion of Ukraine affecting the external environment.\n- Public debt trajectory:\n  - Public debt was put back on a clear downward trajectory starting FY2021/22."
    },
    {
      "heading": "Program objectives and key targets",
      "content": "- Maintain and strengthen hard-won macroeconomic stability.\n- Support unfinished structural reform agenda and unlock growth potential.\n- Fiscal target:\n  - Program targets a primary surplus of 2 percent of GDP in FY2022/23, up from minus 1 percent of GDP recorded in both FY 2020/21 and FY 2021/22.\n- Structural reforms highlighted:\n  - Strengthening of tax and customs administration.\n  - Strengthening Public Financial Management (PFM).\n  - Adoption and implementation of pension reform.\n  - Rationalization and consolidation of State-Owned Enterprises (SOEs).\n  - Growth-enhancing measures, including additional steps to improve the business climate."
    },
    {
      "heading": "RSF-specific objectives and measures",
      "content": "- RSF financing to support climate change adaptation and mitigation and Barbados’ transition goals.\n- Country ambition:\n  - Transition to a fully renewable-based economy by 2030.\n- RSF reforms include:\n  - Mainstreaming of climate change in the budget.\n  - Introduction of \"green Public Financial Management\", including in procurement.\n  - Measures to incentivize private sector investments in climate resilient infrastructure and renewable energy projects.\n- Coordination:\n  - RSF measures were identified in close coordination with the World Bank and other international partners."
    },
    {
      "heading": "Risks and outlook",
      "content": "- Inflation has been rising since the second half of 2021 owing to supply chain disruptions and increasing global food and oil prices.\n- Economic recovery is expected to continue over the medium term, but downside risks to the outlook remain high."
    },
    {
      "heading": "Executive Board statement (Kenji Okamura, Deputy Managing Director and Acting Chair)",
      "content": "- Barbados continues to make good progress implementing its homegrown Economic Recovery and Transformation Plan despite a very challenging global economic environment.\n- The combination of fiscal consolidation, comprehensive debt restructuring, and structural reforms created space for a countercyclical policy response to the COVID-19 pandemic in 2020 and 2021.\n\nPress Release No. 22/417, December 7, 2022 — International Monetary Fund\n\n---\n\n\n References\n\n- Kenji Okamura\n- PRESS CENTER\n- Barbados and the IMF\n- Russian Federation and the IMF\n- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Press Releases\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/12/07/pr22417-barbados-imf-executive-board-approves-usd113m-under-eff-and-usd189m-under-rsf"
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    "Published: December 7, 2022",
    "Approved arrangements:",
    "Purpose: to maintain and strengthen macroeconomic stability, support the structural reform agenda, and increase resilience to climate change.",
    "Barbados has implemented a comprehensive Economic Recovery and Transformation (BERT) plan and completed a 2018-22 EFF.",
    "Despite global and regional economic shocks, Barbados has pursued fiscal consolidation, comprehensive debt restructuring, and structural reforms that restored macroeconomic stability in 2018 and 2019.",
    "The economy is starting to recover from the COVID-19 pandemic, but risks remain elevated due to:",
    "Public debt trajectory:",
    "Maintain and strengthen hard-won macroeconomic stability.",
    "Support unfinished structural reform agenda and unlock growth potential.",
    "Fiscal target:",
    "Structural reforms highlighted:",
    "RSF financing to support climate change adaptation and mitigation and Barbados’ transition goals.",
    "Country ambition:",
    "RSF reforms include:",
    "Coordination:",
    "Inflation has been rising since the second half of 2021 owing to supply chain disruptions and increasing global food and oil prices.",
    "Economic recovery is expected to continue over the medium term, but downside risks to the outlook remain high.",
    "Barbados continues to make good progress implementing its homegrown Economic Recovery and Transformation Plan despite a very challenging global economic environment.",
    "The combination of fiscal consolidation, comprehensive debt restructuring, and structural reforms created space for a countercyclical policy response to the COVID-19 pandemic in 2020 and 2021.",
    "[Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Barbados and the IMF](http://www.imf.org/external/country/BRB/index.htm)",
    "[Russian Federation and the IMF](http://www.imf.org/external/country/RUS/index.htm)",
    "[IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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