Straughn says new payment system not an IMF demand

A new national payment system is neither a demand of the International Monetary Fund (IMF) nor the Barbados Economic Recovery and Transformation (BERT) programme, Minister in the Ministry of Finance Ryan Straughn declared Tuesday.

As he led debate on the legislation to govern digital payments, the National Payment System Bill, Straughn told the House of Assembly an upgraded digital payment system was instrumental if Barbados’ economy was to evolve.

Straughn rubbished suggestions by Opposition Leader Reverend Joseph Atherley that the bill had been rushed and established out of “a sense of obligation” to the IMF.

“The notion that this bill has been rushed to the Parliament is something that when we started this journey in January of 2019, there was no contemplation or any dictates from the IMF or any such entity…This Bill is not one of the structural benchmarks or reforms as part of the BERT plan, but it is critically important as one of Government’s objectives to be able to transform the economy,” Straughn said.

The finance minister said all financial institutions, business community figures, the Central Bank and the Treasury were all involved in developing the new system.

He said the intention was to streamline all processes and procedures within financial institutions where payments could now happen in “real-time” from June.

It would allow Government to both receive and deliver payments to its citizens as required, he added.

Straughn told the House: We started on this journey in January 2019, because we knew as a Government that it was important that we tackle a number of longstanding issues as it relates to doing business in the country and whilst the Government has taken the responsibility for examining how we ourselves do business internally as Government, as well as with the public, we have started the process of onboarding a number of different processes being offered across Government to the citizens, but at the back end being able to utilize technology to help Government deliver better services to the people.”

Declaring Government had heard the “pleas and cries of businesses” which were forced to close during the COVID-19 pandemic, Straughn said an updated payment system would allow for those businesses to continue operating.

He said the new system was just as important to “the average Barbadian” who would now be able to conduct business much easier and on a wider scale.

Straughn said cross-border transactions would also be more accessible and would encourage businesses to engage in foreign trade.

He told lawmakers: “What this bill is contemplating is to change the landscape with respect to the way business is conducted in the country. The reality is that we are laying the platform much like an athletics track and persons will have the options to determine how they want to run their race or run their business so to speak, in terms of the product offering, to the extent that we want to encourage more businesses in Barbados to do more foreign trade, to go and take advantage of any opportunity in any part of the world.”
(randybennett@barbadostoday.bb)