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BARBADOS | IMF urges debt restructuring and fiscal consolidation for stability

Featured BARBADOS | IMF urges debt restructuring and fiscal consolidation for stability
BRIDGETOWN, Barbados, July 14, 2018 - The International Monetary Fund says it is supportive of the Government of Barbados’s Economic Recovery and Transformation plan and the authorities’ revised budget for 2018/19, is a decisive step in the right direction. inclusive of its targetted primary surplus of 6 percent of GDP.

An International Monetary Fund (IMF) team led by Bert van Selm,  at the request of the newly elected Government of Barbados,visited Bridgetown July 2–12 .

At the end of the visit, Mr. van Selm said:“The Barbadian authorities, in close consultation with their social partners, are taking effective steps to address current economic vulnerabilities. The IMF stands ready to partner with Barbados to restore macroeconomic stability in order to secure strong, durable and inclusive growth in the years ahead.

The IMF statement said “Fiscal consolidation alongside a comprehensive debt restructuring exercise is critical for restoring debt sustainability and policy credibility. In this context, Consistent with the message delivered by the Prime Minister and Minister of Finance during the Budget a second phase of measures will be needed to achieve this target.

"This next phase will focus on reducing expenditures—notably by improving the efficiency and effectiveness of public services, reducing government transfers to state-owned enterprises by reviewing user fees, exploring options for mergers, and providing stronger oversight.

Mr. van Selm pointed out that “Progress being made by the authorities in furthering good-faith discussions with domestic and external creditors is welcome, and continuing open dialogue and sharing information, will remain important in concluding an orderly debt restructuring process.

The IMF statement said “Significant progress has been made during this IMF staff visit on the plan that could underpin financial support from the IMF. On its return to Washington the team will continue to analyze the Government’s comprehensive reform program. We will remain closely engaged with the authorities in the coming weeks.

 

  • Countries: Barbados

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