Barbados has received a US$75 million loan from the Caribbean Development Bank (CDB) to push its recovery 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 CDB stated in a press release.
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 Caribbean Development Bank continues to support the reform programme to secure a better future for all Barbadians. The USD75 million loan will help to bolster the Government’s fiscal performance while safeguarding poor and vulnerable people,” said CDB President Dr. Warren Smith.
According to the Bank, the Government of Barbados has demonstrated strong resolve and commitment to the plans and targets of its economic recovery and transformation plan.
The CDB said public debt restructuring and fiscal restraint are making the debt burden more manageable. The Bank projects that the public debt will fall from 117.5% of gross domestic product (GDP) in 2019 to 80% of GDP in the next eight years.
Sustained effort 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 CDB noted.
“The loan will enable the Government to meet critical targets and help to instil the investor confidence needed to accelerate economic growth in Barbados”, said Smith.