Barbados has reached a staff-level agreement with the International Monetary Fund (IMF) for a precautionary Stand-By Arrangement valued at approximately US$260 million, but Prime Minister Mia Amor Mottley stressed today that the country was not entering another IMF programme.
Speaking following discussions with IMF officials at Ilaro Court, Mottley explained the arrangement was essentially a “line of credit” designed to protect Barbados against external shocks stemming from growing geopolitical uncertainty, rising oil prices and possible disruptions in the global economy.
“We do not need it. We genuinely do not need it at this point in time,” Mottley said, while adding that Government wanted immediate access to liquidity should global conditions deteriorate suddenly.
IMF Mission Chief for Barbados Michael Perks said the arrangement would serve as “insurance against external shocks in a more shock-prone world” and confirmed that Barbados currently had no balance of payments crisis.
Perks noted that Barbados was entering the arrangement from a position of strength, citing solid economic growth, improved fiscal performance and strong international reserves.
The agreement is expected to go before the IMF Executive Board for approval next month. (CLM)
