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EVEN AFTER A VERBAL CLASH with International Monetary Fund (IMF) boss Christine Lagarde a year ago over the institution’s harsh economic fixes for developing countries like Barbados, Central Bank Governor Dr DeLisle Worrell says the IMF is now working closely with Barbados.
During his first Press conference for 2014, Worrell, a former IMF economist, said the country had its reserves back up to the $1 billion mark and so IMF financial support was not needed.
However, he admitted that the IMF was advising Government on “managing and monitoring statutory corporations” that had been among the biggest drains on state finances.
Last month, Minister of Finance Chris Sinckler announced that Government would cut as many as 3 500 workers from the public sector, with half of them likely to come from statutory corporations.
“We are working closely with the IMF. We don’t need an agreement which would involve borrowing from the IMF. We have reserves which are more than adequate but at the same time we value the technical assistance and advice that we get from the IMF and we are actively engaged with them using that technical assistance . . . in the area of tax administration and our revenue collection,” the governor said.