## 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](https://www.imf.org/en/publications/cr/issues/2020/06/08/barbados-third-review-under-the-extended-arrangement-requests-for-augmentation-of-access-and-49491)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/06/08/barbados-third-review-under-the-extended-arrangement-requests-for-augmentation-of-access-and-49491/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/06/08/barbados-third-review-under-the-extended-arrangement-requests-for-augmentation-of-access-and-49491/index.json)
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## Bibliographic details
- Published: June 8, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513546711.002

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### 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

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## Content in this bundle

- **1brbea2020001 — Executive Summary**
  - [1brbea2020001 — Executive Summary (Markdown version)](/-/media/files/publications/cr/2020/english/1brbea2020001.pdf.md){rel="alternate" type="text/markdown"}
  - [1brbea2020001 — Executive Summary (PDF)](/-/media/files/publications/cr/2020/english/1brbea2020001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/06/08/barbados-third-review-under-the-extended-arrangement-requests-for-augmentation-of-access-and-49491_