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IMF approves Barbados’ new funding programmes

IMF approves Barbados’ new funding programmes
Head of IMF mission Bert Van Selm (right) speaking at the media conference. Also pictured are Prime Minister Mia Mottley and government economic advisor Kevin Greenidge. (Picture by Reco Moore)

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Barbados created history today, becoming the first country in the world to be approved for the newly formed International Monetary Fund’s (IMF) Resiliency Sustainability Facility (RSF).

Additionally, the ten-day IMF mission led by Bert Van Selm also approved a staff level agreement for the country’s three-year Extended Fund Facility (EFF), which will give Barbados a special drawing right (SDR) US$110 million.

Under the RSF, which would be repaid over a 20-year period and includes a 10-year moratorium, Barbados will initially access US $183 million.

Overall, the country will have access to US$293 million.

The parameters of the two arrangements were outlined during a press conference held on Wednesday at Ilaro Court. It was attended by Prime Minister Mia Amor Mottley, high level members of government’s economic team and the IMF delegation.

“We welcome the staff-level agreement reached between the Government of Barbados and the IMF team on access to the IMF’s new Resilience and Sustainability Trust to build resilience against climate change with affordable, long-term financing at 150 percent of quota (about US$183 million),” Van Selm said.

“The RSF will be accompanied by a 36-month arrangement under the Extended Fund Facility (EFF) with requested access at 90 percent of quota (about US$110 million) to maintain and strengthen macroeconomic stability in a more shock-prone environment by enhancing fiscal sustainability, continuing and broadening the implementation of the structural reform agenda.” (CLM)