The Central Bank of Barbados has expressed satisfaction that the International Monetary Fund had recognized that the Barbados Government was serious about sticking to its fiscal adjustment programme.
In a statement following a release from the IMF regarding the meeting on of the 2013 Article IV consultation with Barbados, the Central Bank gave the assurance that the policies outlined by Government were being implemented.
“The IMF acknowledged that the 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 financial institution said.
It added: “The IMF’s recommendations are in line with the policies announced by Government, and are being implemented”.
The Central Bank said revenue administration was being strengthened with the establishment of the Barbados Revenue Authority, a medium-term strategy for the further reduction in the fiscal deficit remained in place and the public sector wage bill was being reduced as a result of the layoffs and attrition.
“Non-statutory revenue exemptions which do not support foreign exchange earning sectors or support the society’s most vulnerable are being reduced . . . 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,” it said, adding that improved business facilitation and higher labour productivity were at the core of Barbados growth strategy.
The Central Bank said the Barbados authorities looked forward to the ongoing assistance of the IMF, including through the Caribbean Technical Assistance Centre, with the implementation of the outlined measures.