## IMF Executive Board Approves 36-month US$257 million Precautionary Stand-By Arrangement for Barbados and Concludes 2026 Article IV Consultation

_IMF News, June 22, 2026_

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## Bibliographic details
- Published: June 22, 2026

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### Arrangement overview and purpose
- IMF approved a 36-month precautionary Stand-By Arrangement (SBA) for Barbados amounting to SDR 189 million (equivalent to US$257 million, or 200 percent of quota).
- The Executive Board’s decision allows the authorities immediate access to SDR 47 million (equivalent to US$64 million).
- The authorities have indicated they will treat the SBA as precautionary and have consented to publication of the Staff Report prepared for this consultation.
- The SBA will:
  - provide insurance in the event shocks generate balance of payments needs;
  - help preserve macroeconomic stability; and
  - support reforms under the homegrown Barbados Economic Recovery and Transformation Plan 2026 (BERT 2026).

### Key pillars of the SBA
- Sustaining strong fiscal accounts, balancing debt sustainability with development needs.
- Maintaining ample international reserves to support the exchange rate peg.
- Implementing structural reforms to continue building fiscal policy and institutional credibility and bolster financial stability.
- Supporting efforts to boost productivity and competitiveness, and build resilience to natural disasters.

### Recent macroeconomic performance and outlook
- Economic activity in 2025:
  - Growth estimated at 2.7 percent.
  - Labor market remained strong.
  - Inflation averaged 0.9 percent.
  - Current account deficit reached 5.7 percent of GDP.
  - Foreign direct investment strengthened significantly, supporting the balance of payments.
  - Gross international reserves about US$1.5 billion at end-2025 (around 6 months of imports).
  - Primary surplus of 4.2 percent of GDP in FY2025/26.
  - High corporate income tax revenues supported expanded public investment in infrastructure and resilience.
  - Financial soundness indicators continued to improve in 2025.
- Outlook:
  - Growth expected to remain stable in 2026.
  - Risks tilted firmly to the downside amid high global policy uncertainty, elevated commodity prices, geopolitical tensions, and vulnerability to natural disasters.

### Executive Board and Deputy Managing Director highlights
- Deputy Managing Director Nigel Clarke emphasized:
  - Strong implementation of BERT 2022 supported by IMF arrangements has reinforced macroeconomic stability and facilitated structural reforms.
  - Public debt is on a firm downward path, international reserves rebuilt, access to capital markets restored, and important structural reforms completed.
  - The SBA provides insurance in a shock-prone external environment while supporting the BERT 2026 plan.
  - Authorities committed to maintaining strong fiscal surpluses to keep debt on a declining path and achieve the public debt target of 60 percent of GDP by FY2035/36.
  - Fiscal reforms will build policy credibility and strengthen frameworks and institutions; revenue mobilization and public financial management remain priorities.
  - Developing domestic debt markets is key to reducing rollover risks and mobilizing domestic savings.
  - The exchange rate peg remains a critical anchor, supported by ample international reserves.
  - Financial system stability is being reinforced via improvements to banking supervision and enhancements to the AML/CFT framework.
  - Reforms to boost productivity, competitiveness, and resilience are critical: tackling infrastructure bottlenecks, improving the business environment, investing in skills and education, boosting resilience to natural disasters, and facilitating transition to renewable energy.

### Executive Board Assessment — Directors’ views and recommendations
- Directors agreed with the thrust of the staff appraisal and welcomed the BERT plan focused on economic transformation.
- Key shared assessments and recommendations:
  - Outlook remains stable but risks are tilted to the downside; precautionary SBA is appropriate to provide insurance and support reform implementation.
  - Support for maintaining high primary fiscal surpluses to preserve debt sustainability and achieve the 60 percent debt target by FY2035/36.
  - Additional revenue windfalls should be used to boost resilience through critical capital spending and further buildup of fiscal buffers.
  - Any additional measures to cushion shocks should be temporary and targeted to the most vulnerable.
  - Developing domestic debt markets will reduce rollover risks and mobilize domestic savings.
  - Fiscal reforms: implement the new tax exemption framework, deepen revenue administration reforms, and improve public financial management (including oversight of state‑owned enterprises and implementing the new Public‑Private Partnership framework).
  - Consider removing the foreign exchange fee to reduce market distortions and continue long‑term efforts to strengthen monetary policy operations.
  - Financial sector reforms: strengthen banking supervision, develop a resolution framework, operationalize the new deposit insurance scheme, and continue strengthening the AML/CFT framework.
  - Structural reform priorities to boost potential growth: tackle infrastructure bottlenecks, improve the business environment, and close skills gaps.
  - Commendation of authorities’ commitment to build resilience to external shocks and natural disasters and to facilitate the transition to renewable energy.
- It is expected the next Article IV consultation with Barbados will be held in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements.

### Selected economic indicators (2024–2026) — key figures from Table 1
I. Social and Demographic Indicators (most recent year)
- Population (2025 est., thousand): 282.7
- Adult literacy rate (2014): 99.6
- Per capita GDP (2025 est., US$ thousand): 28.7
- Poverty rate (individual, 2016): 15.8
- Life expectancy at birth in years (2022): 76.8
- Gini coefficient (2016): 34.1
- Rank in UNDP Development Index (2023): 69.0
- Unemployment rate (2025): 6.6
- Main products, services and exports: tourism, financial services, rum, sugar, and chemicals.

II. Economic Indicators — Projection (2024 / 2025 / 2026)
- CY Real GDP: 3.4 / 2.7 / 2.2
- CPI inflation (average): 1.5 / 0.9 / 3.1
- CPI inflation (end of period): 0.4 / 1.6 / 3.8
- Exports of goods and services: 13.2 / 4.4 / 4.5
- Imports of goods and services: 7.8 / 8.2 / 7.6
- Net domestic assets: 6.8 / 5.8 / (blank)
- Of which: Credit to the non financial private sector: (blank)
- Broad money: 7.5 / 3.5 / (blank)

CG Public finances (fiscal year) 1/
- Revenue and grants: 27.2 / 26.8 / 28.5
- Expenditure: 28.1 / 27.1 / 29.2
- Fiscal Balance: -0.8 / -0.2 / -0.7
- Interest Expenditure: 4.9 / 4.2 / (blank)
- Primary Balance: 4.0 / (blank) / (blank)

Public sector debt (fiscal year) 2/
- Public sector debt: 98.9 / 96.0 / 91.8
- External: 39.6 / 38.4 / 37.1
- Domestic: 59.3 / 57.6 / 54.8

Balance of payments (calendar year)
- Current account balance: -3.7 / -5.7 / -6.0
- Capital and financial account balance: 5.0 / 6.2 / (blank)
- Net Errors and Omissions: -0.1 / -1.3 / 0.0
- Overall balance: 1.2 / -0.9 / -2.3

Memorandum items:
- Gross international reserves (US$ million): 1,593 / 1,523 / 1,333
- Nominal GDP, CY (BDS$ millions): 15,195 / 15,888 / 16,646
- Nominal GDP, FY (BDS$ millions): 15,413 / 16,078 / 16,859

Notes:
- Fiscal year is from April to March.
- Public sector debt includes government-guaranteed debt, expenditure and debt arrears (if any), and IMF loans provided to the CBB for BOP support under the 2018 EFF.
- US dollar amounts have been calculated using today’s exchange rate: (SDR 0.73601/US$).

*Press Release No. 26/219, June 22, 2026.*

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## References

- [Barbados and the IMF](http://www.imf.org/external/country/BRB/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [www.imf.org/barbados](http://www.imf.org/barbados)
- [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2026/06/22/pr26219-barbados-imf-exec-board-approves-36mo-us257m-psb-arr-concludes-2026-aiv-consult_