Barbados To Get US$38Mn From IMF

• The International Monetary Fund (IMF) is to make available US$38Mn to Barbados after the island completed the first reviews of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) arrangements with the Washington-based financial institution.
• The IMF said Barbados is implementing an ambitious homegrown economic reform and climate policy agenda aimed at strengthening fiscal sustainability, advancing structural reforms, unlocking the economy's growth potential, increasing resilience to climate change, and greening the economy.
• After successfully weathering a series of shocks in recent years, the Barbadian economy has recovered, with eight consecutive quarters of growth, and continues expanding in 2023 underpinned by an ongoing rebound in tourism and related activities. 
• Notably, the fiscal balance has significantly improved (from -1.4% in FY2022/23 to an estimated 1.1% for FY2023/24), and public debt has been placed on a downward path, reaching 122.5% of GDP as of end-fiscal year 2022/23 (119.6% excluding IMF loans provided for balance of payments support) from 137.9% the previous period. In addition, international reserves have risen to US$1.6Bn as of end-March 2023 covering over 7 months of imports from US$1.5Bn in March 2022.
• Additionally, IMF's first deputy managing director and acting chair of the executive board, Gita Gopinath, in a statement issued, noted that the authorities are advancing their ambitious climate policy agenda to increase resilience to climate change and green the economy. Ongoing efforts to incorporate climate policy goals in the fiscal process, including by discussing climate change risks in the budget and enhancing public procurement, are welcome.
• The climate policy reforms are expected to help create an enabling environment that mobilises private sector investment in climate-related projects for the sovereign.

(Source: International Monetary Fund)