IMF to augment EFF facility for Barbados by US$66 million: CARICOM BUSINESS

The IMF has announced that all quantitative targets for endSeptember under the Extend Fund Facility (EFF) with Barbados were met. It further advised that the programme target for Net International Reserves was met by a wide margin exceeding US$1 billion.

Those were the findings of the virtual EFF review mission between October 26 – 30, 2020. Barbados is now targeting a primary balance of minus 1% of GDP for FY2020/21 (compared to a surplus of 6% of GDP envisaged prior to the pandemic, and a surplus of 1% of GDP at the time of the 3rd EFF review).

The Fund in indicating its acceptance of an easing of the fiscal stance has proposed an augmentation of the existing EFF by SDR 48 million (US$66 million) to help finance the emerging fiscal deficit. However, the IMF noted that the “tabling of a revised central bank law to parliament is expected shortly; this is a critical safeguard for continued macroeconomic stability and will be a prior action for the completion of this EFF review.” (IMF)

Extract from the CARICOM BUSINESS Vol. 3 No. 44

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Caricom Business October 30 2020_vol-3_no-44