Barbados has successfully passed the first stage of its International Monetary Fund (IMF) programme.
IMF Deputy Mission Chief, Caribbean II Division, Bert Van Selm, made the announcement in a media briefing this afternoon at Government Headquarters, Bay Street, St Michael.
Van Selm said the staff level agreement for the Extended Fund Facility arrangement was subject to review by the executive board in June.
On completion of that review, the island would receive a further US$49 million, bringing the total money borrowed under the programme to US$98 million.
“Barbados continues to make strong progess in implementing its ambitious and comprehensive economic reform programme,” Van Selm said.
He pointed to the more than doubling of the international reserves from US$220 million and a mere five week of cover at the end of May last year.
The completion of the domestic debt restructuring exercise “has been very helpful in reducing economic uncertainty,” he added.
Van Selm said the reform of state-owned enterprises through increased reporting and “shedding” of excess staff all contributed to this. Meanwhile the IMF continues to monitor the progress of negotiations with external creditors.
He said Government’s plans for a budget targeting a primary surplus of 6 per cent of GDP provided “a solid basis for targeted fiscal consolidation”. Some of the recently passed legislation and a broadening of the tax base would support revenue.
Mottley thanked Barbadians and the Social Partnership for all that has been achieved to date. (SAT)
