BRIDGETOWN, Barbados – The Board of Directors of the Caribbean Development Bank (CDB) has approved a loan of USD$75 million to assist the Barbadian government’s reform programme. The policy-based loan will support the restoration of macroeconomic stability and place the economy on a path of strong, sustainable and inclusive growth while safeguarding the financial and social sectors.
The operation will assist the Barbadian government in some key areas of the reform programme, such as broad-based growth, social development, enhanced revenue administration, and improved financial management.
“The CDB continues to support the reform programme to secure a better future for all Barbadians. The USD$75 million loan will help to bolster the government’s fiscal performance while safeguarding poor and vulnerable people,” said CDB president Dr. Wm Warren Smith.
The government of Barbados has demonstrated strong resolve and commitment to the plans and targets of its economic recovery and transformation plan. Public debt restructuring and fiscal restraint are making the debt burden more manageable. CDB projects that the public debt will fall from 117.5 percent of gross domestic product (GDP) in 2019 to 80 percent of GDP in the next eight years. Sustained efforts to strengthen social protection and protect the interests of the poor and vulnerable are important for the continued success and sustainability of the reforms.
“The loan will enable the government to meet critical targets and help to instill the investor confidence needed to accelerate economic growth in Barbados”, said Smith.
CDB’s support is part of wider coordinated assistance provided by international financial institutions. CDB provides policy-based loans to governments in response to urgent needs occasioned by external or internal economic imbalances, including debt crises and temporary foreign reserves shortages.