Barbados to seek another IMF loan

BRIDGETOWN, Barbados, CMC – Prime Minister Mia Motley Friday announced that Barbados would be seeking a new loan agreement with the International Monetary Fund (IMF) this month, telling citizens “these are indeed rough waters”.

In 2018, the Washington-based financial institution approved a US$290 million arrangement under its Extended Fund Facility for Barbados, noting then that the programme was aimed at helping the island restore debt sustainability, strengthen the external position, and improve growth prospects.

Mottley, speaking at a news conference, said that her government had decided to return to the IMF later this month “with the intent of starting a BERT (Barbados Economic Recovery and Transformation) 2022 programme.

“This decision has not been taken lightly, but this is being done to ensure Barbados can continue its trajectory of positive growth,” she said.

“In addition to providing further means to stabilise our country, this programme will unlock critically important funding, giving Barbados a boost on the great progress we have already made, despite the hardships brought on by the global challenges,” Mottley said.

She told Barbadians “these are indeed rough waters, but this is not a race for the swift and I know we can and will endure and at the same time create a better society for every Bajan to live in”.

The government had announced that the BERT programme had been updated to reflect the arrival of the coronavirus (COVID-19) pandemic and its comprehensive response.

The authorities said then that BERT was not a rigid set of targets but a plan of action and behaviour that was measured and monitored.

Mottley Friday defended the decision to seek assistance from the IMF, saying Barbados could have easily gone to the international market to raise the required funds.

“But I don't want to go to the market when interest rates are being increased. We can go to the IMF and pay a fraction of what the market will ask us to pay,” she said, adding that the environment on the international market is not something the island would want to be involved with at this time.

“So we know the reality that outside is overcast globally and there is a possibility of not just some showers, but some hurricanes and earthquakes and other things that are destabilising countries.”

Mottley, who announced that she will be in Paris on Monday before travelling to Washington, said her discussions in the French capital with the representatives of the Organisation for Economic Co-operation and Development (OECD) will focus on tax issues.

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