The policy-based loan to the Government of Barbados was designed to align with national priorities, and developed in close consultation with the country’s Social Partnership, its ministries, departments and agencies. In addition, it reflects ongoing collaboration between the International Monetary Fund, the Inter-American Development Bank, the World Bank and CDB, with respect to Barbados’ macroeconomic situation.
The loan is the first of a series of four programmatic interventions proposed over the next four years. This intervention will assist the Government with the implementation of the BERT Plan, focusing on immediate fiscal consolidation and stabilisation policies, social sector reforms, and competitiveness and growth-enhancing reforms for economic and social development, resilience-building and sustainability.
In August, CDB’s Board of Directors approved a grant of USD400,000 to help the Government of Barbados further develop its economic reform programme, setting in motion the Bank’s plan to support the country’s return to sustained economic growth.
In accordance with CDB’s Policy-Based Operations Policy Framework, the policy-based loans provide support to governments in response to urgent needs occasioned by external and/or internal economic imbalances, including debt management crises and temporary foreign reserves shortages.