## IMF Executive Board Concludes the Fourth Reviews Under the Extended Fund Facility and the Resilience and Sustainability Facility with Barbados _IMF News, December 18, 2024_ ## Source details **Canonical URL:** [IMF Executive Board Concludes the Fourth Reviews Under the Extended Fund Facility and the Resilience and Sustainability Facility with Barbados](https://www.imf.org/en/news/articles/2024/12/18/pr-24488-barbados-imf-concludes-the-4th-reviews-under-eff-and-rsf) ## Other formats - [Markdown version](/en/news/articles/2024/12/18/pr-24488-barbados-imf-concludes-the-4th-reviews-under-eff-and-rsf/index.md) - [Structured JSON version](/en/news/articles/2024/12/18/pr-24488-barbados-imf-concludes-the-4th-reviews-under-eff-and-rsf/index.json) - [Bundle manifest](/en/news/articles/2024/12/18/pr-24488-barbados-imf-concludes-the-4th-reviews-under-eff-and-rsf/bundle-manifest.json) ## Bibliographic details - Published: December 18, 2024 --- ### Review conclusion and IMF financing - Executive Board concluded the Fourth Reviews of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) with Barbados. - The conclusion allows immediate disbursement of: - SDR 14.175 million (about US$19 million) under the EFF. - SDR 28.35 million (about US$37 million) under the RSF. - Total disbursements to date: - EFF: SDR 70.875 million (about US$93 million). - RSF: SDR 113.4 million (about US$149 million). - All quantitative performance criteria and indicative targets set for the fourth review of the EFF were met. - All structural benchmarks for the fourth review were met and the two RSF reform measures were implemented. ### Economic performance and external position (2024) - Economic growth: - The Barbadian economy expanded by 3.9 percent year-on-year between January and September 2024. - Growth driven by tourism, business services, and construction. - Labor market: - Unemployment in the first half of the year fell to its lowest level since 2008. - Inflation: - Inflation continued moderating due to easing global commodity prices and lower domestic service prices. - External sector: - Current account deficit narrowed to 5 percent of GDP through September 2024. - International reserves reached US$1.6 billion (equivalent to over 7 months of imports), supporting the exchange rate peg. - Natural disasters: - Hurricane Beryl caused significant damage to the fishing sector and some coastal infrastructure; macroeconomic impact expected to be relatively moderate due in part to its occurrence during the off-peak tourist season. ### Fiscal outcomes, debt, and targets - Fiscal performance: - Authorities comfortably met the primary fiscal surplus target for the first half of FY2024/25. - Authorities are on course to meet the end-year target of 3.8 percent of revised GDP. - Public debt: - Public debt declined to around 105 percent of GDP at end-September 2024. - Authorities remain committed to meeting the debt target of 60 percent of GDP by 2035/36. ### Structural reforms, institutional measures, and climate agenda - BERT 2022: - Government continues implementing the home-grown Barbados Economic Recovery and Transformation (BERT 2022) plan to achieve more inclusive and sustainable growth, maintain fiscal and debt sustainability, and build resilience to climate change. - BERT 2022 places renewed focus on structural reforms to promote investment, accelerate the green transition, boost inclusive growth, and enhance competitiveness. - Fiscal and public sector reforms: - Important progress on fiscal reforms, including strengthening revenue administration, improving public financial management, and enhancing public investment and procurement. - These measures are described as critical to preserve fiscal sustainability and create space for public investment. - Monetary and financial resilience: - Exchange rate peg remains a key anchor for macroeconomic stability, supported by ample international reserves. - Authorities are working to enhance the monetary policy framework and strengthen financial resilience. - Following Barbados’ removal from the FATF grey list, maintaining momentum to further strengthen the AML/CFT framework remains important. - Climate policy and financing: - Ambitious climate policy agenda continues to advance. - A new Electricity Supply Bill has been tabled to enhance competition in the electricity market and encourage local participation in renewable energy investment. - The Central Bank of Barbados has adopted a strategy for building its capacity to monitor and assess climate change risks to help safeguard financial stability and economic resilience. - Authorities are successfully mobilizing climate financing, supported by international development partners. - The recent debt-for-climate conversion is highlighted as an important innovation that will generate savings for upfront green investment to enhance Barbados’ water supply and resilience, support environmental sustainability, and boost food security. ### Risks, outlook, and policy priorities - Risks: - Barbados remains vulnerable to global shocks, climate change, and natural disasters. - Policy priorities emphasized: - Continue implementing fiscal, structural, and public financial management reforms. - Strengthen the business environment, mobilize domestic savings, and invest in skills and education to achieve more inclusive and sustainable growth. - Maintain exchange rate peg supported by adequate reserves while enhancing monetary policy framework and financial sector resilience. - Sustain momentum on AML/CFT reforms following removal from the FATF grey list. - Continue mobilizing climate financing and implementing measures to enhance resilience to climate change and natural disasters. *IMF Press Release No. 24/488; December 18, 2024 — IMF Communications Department* --- ## References - [PRESS CENTER](http://presscenter.imf.org/) - [Barbados and the IMF](http://www.imf.org/external/country/BRB/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) - [Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr) - [Press Releases](https://www.imf.org/en/news/searchnews) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2024/12/18/pr-24488-barbados-imf-concludes-the-4th-reviews-under-eff-and-rsf_