GOVERNMENT IS persisting with its heavy reliance on Central Bank money.
Yesterday, Governor Dr DeLisle Worrell reported that not only had his institution channelled $238 million in commercial bank deposits to the Government, but it also supplied $190 million in “newly created money” to help finance the deficit.
The latter, which is commonly called “printing money”, is a practice the International Monetary Fund previously warned the Central Bank about. Opposition Leader Mia Mottley also raised concern about it yesterday during her no-confidence motion presentation in the House of Assembly.
Using the bank’s delayed first quarter review to outline how Government was being financed, Worrell said, “Commercial banks increased their financing of Government by $154 million over the fiscal year. In addition, Central Bank advanced $238 million to Government from additional liquidity which commercial banks accumulated at Central Bank. (AC)
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