Following is an edited version of a statement by president of the Democratic Labour Party Verla De Peiza in response to the 2021 First Quarter report from the Central Bank of Barbados.
“The Central Bank of Barbados report for the First Quarter of 2021 is a sobering read.
“One obvious conclusion is that the lax in the quarantine protocols of November/December 2020 reversed the gains derived from the increased tourist arrivals. The resulting surge in COVID-19 positive cases meant that we spent the money earned on COVID relief, both in health care and in disbursements to people and businesses.
“The country was in recession before COVID and, for certain, we are now deeper in recession.
“Our external debt level has now outstripped that at any point in the Stuart era; borrowing increased during this quarter as well; and unless policy initiatives are put in place shortly, the Government may be tempted to borrow more. This should be resisted, especially since the figures suggest that approximately half of what was borrowed last year was used to pay the debt.
“It is likely too that the revised benchmark with the International Monetary Fund is in jeopardy, especially now that dampened revenues have collided with the resumption of interest payments to external debtors. There are also no signs now or on the horizon of the promised return of investor confidence.
“This is an untenable situation. Government must take steps now to address revenue generation. The Democratic Labour Party again suggests that micro, small, and medium-sized businesses are best placed to pull Barbados out of recession.
“They also can assist with addressing the runaway unemployment, the rate at which the Governor has again resisted recording in the report . . . .
“Transparency was promised and must be delivered.” (PR)
