THE INTERNATIONAL MONETARY FUND (IMF) has warned the Freundel Stuart administration that the National Insurance Scheme (NIS) could face a shortfall in funds if Government and state owned enterprises (SOEs) continue to pay the scheme late.
Though noting the NIS was “well managed”, the IMF urged Government to “make contributions in a timely manner (rather than providing the equivalent in debentures) to ensure that NIS has sufficient liquidity”.
The Washington-based institution, in its 2016 Article IV Consultation report on Barbados concluded earlier this year but recently released, also said that future shortfalls in NIS funds could result in a reduction in benefits.
And according to the Central Bank’s last report on the economy in September, liquid NIS assets moved from $525.7 million in 2008 to $153.2 at the end of 2015, while its cash moved from $13.1 million to $10.8 for the same period.
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