BRIDGETOWN, Barbados, Friday May 26, 2017 – Barbados may not have to look as far as the Washington-based International Monetary Fund for assistance. The Caribbean Development Bank (CDB) has served notice that it’s on standby to bail out the island’s troubled economy if necessary
“We are ready when they are ready to proceed,” CDB president Dr. Warren Smith told the Nation newspaper.
However, the offer comes with conditions. According to Smith, the Freundel Stuart administration would first have to get in line with its requirements
These include lowering the country’s spiraling debt and introducing measures to correct government spending while boosting revenues.
“The task that faces Barbados is to bring the fiscal deficit down and bring it down substantially so that the debt dynamics of the country can move in the right direction,” he said.
Smith revealed that the Bridgetown-based regional financial institution and Barbadian authorities have explored the possibility of a policy-based loan for some time now, but no decisions have been made.
“We don’t think the conditions are right just yet to be able to finalize that,” he added, although assuring it was a strong option.
Dr Smith declined to give a figure, but said it was feasible and that Barbados could receive the appropriate amount of money it needed.
The financial official urged the country to tackle its financial woes head on, and quickly.
“The reality is that if that is not done, stability will not return to the country,” he warned.