The Central Bank says the recommendations made by the International Monetary Fund (IMF) are in line with Government’s policies.
In a statement released this afternoon after the IMF issued a Press release and full report on its Article IV Consultations, the Central Bank said the Fund had acknowledged that Barbadian authorities have recognised the need for urgent action, and that the announced measures, if fully implemented, would serve to lower the fiscal deficit to 4.9 percent of GDP by fiscal year 2014/15, and would help to restore stability to external flows.
“The IMF’s recommendations are in line with the policies announced by Government, and are being implemented,” it said.
The Central Bank pointed to several of those measures:
- Revenue administration is being strengthened with the establishment of the Barbados Revenue Authority;
- Non-statutory revenue exemptions which do not support foreign exchange earning sectors or support the society’s most vulnerable are being reduced;
- The public sector wage bill is being reduced as a result of the layoffs and a programme of attrition;
- A medium-term strategy for the further reduction in the fiscal deficit remains in place;
- The Central Bank of Barbados’ lending to Government will be reduced as the lower deficit is funded from domestic liquidity;
- Monitoring of the financial system is being intensified in line with the recommendations of the FSSA;
- Improved business facilitation and higher labour productivity are at the core of the Barbados growth strategy.
The Central Bank statement said the Barbados authorities appreciate the full and frank discussions with the IMF teams and look forward to the ongoing assistance of the IMF, including through the Caribbean Technical Assistance Centre, with the implementation of the measures.