Caribbean credit rating agency CariCRIS is backing the belt-tightening measures announced by Government.
Wayne Dass, the chief executive officer of the Trinidad-based agency, says the writing was on the wall for sometime and it is now a matter of waiting to see if the initiatives work.
“We note the recent announcements of the layoffs and so on and the effective wage freeze which I think are really absolutely necessary to arrest the decline in the fiscal performance so that is a good announcement. Of course we have to see it actually implemented and see the impact of it on the country as a whole,” he said.
The agency lowered its credit rating for Barbados by two notches yesterday citing “higher than expected fiscal deficits, high and rising debt levels and increasing debt-servicing costs.”