Up in the air
Turning to the International Monetary Fund (IMF) may not be a solution to all Barbados’ financial ills, but a deal can provide the country with “credibility” should it return to the global financial markets.
Just as important, an IMF package deal could impose financial “discipline” on the Government. However, it could increase the risk of Barbados defaulting on debt.
That’s the view of Moody’s Investor’s Service as articulated by Aaron Freedman, the Wall Street firm’s lead analyst for Barbados. He told the Daily Nation in New York that a Fund programme would send a strong signal to the financial markets that Barbados was determined to get the economy moving again.
But negotiating an IMF deal could be like a two-edged sword – It had its benefits and risks.