IMF Reaches Staff Level Agreement On The Seventh Review Of Barbados' Economic Program Under The Extended Fund Facility

• Published date: 24 May 2022
• Subject Matter: Government, Public Sector, Fiscal & Monetary Policy
• Law Firm: Invest Barbados
• Author: Invest Barbados

Bridgetown, Barbados - May 13, 2022: At the request of the Government of Barbados, an International Monetary Fund (IMF) team led by Bert van Selm conducted a mission between May 9-13, 2022 to discuss the implementation of Barbados' Economic Recovery and Transformation (BERT) plan, supported by the IMF under the Extended Fund Facility (EFF). To summarize the mission's findings, Mr. van Selm made the following statement:

"Following productive discussions, the IMF team and the Barbadian authorities reached staff-level agreement on the completion of the seventh and final review under the EFF arrangement. The agreement is subject to approval by the IMF Executive Board, which is expected to consider the review in June. Upon completion of the review, SDR 17 million (or about US$23 million) will be made available to Barbados.

"Economic activity in Barbados is starting to recover from the COVID-19 shock. Tourism came to a virtual standstill in April 2020, and the economy contracted by 14 percent in 2020. A gradual economic recovery started in 2021 and gained momentum in recent months, with tourism now just over 50 percent of pre-pandemic levels. Risks to the outlook remain elevated, with higher global food and fuel prices starting to push up inflation in Barbados.

"In this very challenging environment, Barbados continues to make good progress in implementing its ambitious and comprehensive economic reform program. All quantitative targets for end-December 2021 and end-March 2022 under the EFF...