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Barbados and the International Monetary Fund (IMF) have reached a staff-level agreement to finish the final reviews of two financial support programmes: the Extended Fund Facility (EFF) and the Resilience and Sustainability Fund (RSF).
IMF official Michael Perks said that the reviews will be sent to the IMF’s Executive Board for approval in June. If approved, Barbados can access the remaining US$19 million from the EFF and about US$38 million from the RSF.
Prime Minister Mia Amor Mottley said Barbadians should feel proud. She said the country is stronger and more confident than it was seven years ago when it first joined an IMF programme in 2018.
Perks and Mottley spoke at a press conference on Thursday at Ilaro Court. The IMF team visited Barbados from May 2 to 8 to review how the Barbados Economic Recovery and Transformation (BERT 2022) Plan is going.
Mottley said that even though the country is in a better place now, global uncertainty still poses risks. Because of this, Barbados wants to keep a close relationship with the IMF. She described it as a “speed dial standby” — meaning the country can quickly get help if things take a turn for the worse.
She added that Barbados now has over seven months’ worth of foreign reserves. This is a big improvement from 2018 when the country had only enough for three weeks of imports. Foreign reserves are no longer her biggest worry — instead, she worries about finding enough skilled workers to fill important jobs.
Mottley also mentioned the value of keeping access to technical advice and emergency funding through the IMF. The only downside of standby arrangements, she said, is that any money borrowed must be repaid faster.
Michael Perks praised Barbados’ progress under its own BERT 2 Plan. He said the country’s financial position improved in 2024, with strong economic growth continuing into 2025. The IMF expects the economy to grow by 2.7% this year. However, he warned that the outlook remains uncertain due to global risks and natural disasters.
He said the government has carried out reforms to make the economy stronger and more competitive. Barbados met all its IMF targets, completed all 21 structural benchmarks (with only a few delays), and fulfilled 10 reform measures under the RSF. He said this was a major accomplishment.
Perks added that Barbados is smart to speed up its reforms, and the IMF is ready to keep helping.
Source: Barbados GIS
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