The International Monetary Fund (IMF) will make US$139 million available to Barbados under its Extended Fund Facility (EFF).
The decision was made known yesterday, June 3, following the IMF’s completion of its third review of the four-year EFF for the island.
With the newly-approved disbursement, the island’s total funding increased to US$283 million, of a possible US$377 million, said the IMF.
According to the global financial body, the nation’s economy is facing a major challenge due to the coronavirus pandemic, which will have a large impact on its balance of payments and fiscal accounts.
This downturn comes despite Barbados’ strong implementation of the Economic Recovery and Transformation (BERT) plan, aimed at restoring its fiscal and debt sustainability and increasing growth and reserves, which stood at US$850 million as at April 2020.
IMF Deputy Managing Director and Acting Chair, Tao Zhang, said “Barbados continues to make good progress in implementing its comprehensive Economic Recovery and Transformation plan, with all performance criteria for end-March 2020 met. Prospects for continued strong program performance are good.
He concluded by saying priority should be given to improving the nation’s resilience to natural disasters and climate change.