Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva has given Barbados and other Caribbean countries a passing grade for how they have been able to withstand the ravages of the deadly COVID-19 pandemic.
Ahead of her arrival in Barbados Tuesday, Georgieva warned of “a crisis upon crisis” that has already started to affect the region, while giving the assurance that the IMF stood ready to offer assistance where possible.
Georgieva, who is on her first visit to the Caribbean as head of the IMF, told Barbados TODAY she was “impressed by the exceptional resilience that the people of the Caribbean and their economies have shown over the past couple of years”.
“The region was hit very hard by COVID-19, especially by the ripple effects on tourism and the disruption to supply chains, and how this has damaged people’s livelihoods. Despite this shock, the people of the region stood tall, and their economies have begun to rebound,” she said.
She acknowledged that Barbados and other Caribbean states were now faced with “another set of difficult challenges”, which she said were adding to an already burdened region.
“Unfortunately, this region—like so much of the world—faces yet another set of very difficult challenges—what I have been calling ‘a crisis upon crisis’. Before we have even fully emerged or recovered from the pandemic, the economic repercussions of the war in Ukraine are reaching far beyond Europe, dragging down growth and pushing up inflation. For many countries, there is also the problem of high debt, in part reflecting necessary spending on the pandemic response,” she explained.
“Added to this is the existential threat of climate change, along with more frequent and intense natural disasters – something people on the islands and coasts know all too well. These are formidable challenges and, while we have our work cut out for us, I have confidence in the famed spirit and strength of the Caribbean people, and our ability to tackle these issues together,” she said.
Her comments come as the country receives one last approval from the IMF for a final draw down from the Extended Fund Facility (EFF) under the four-year Barbados Economic Recovery and Transformation (BERT) programme that began in October 2018.
Following an IMF mission last month to discuss the implementation of the BERT plan, a staff-level agreement was reached on the seventh and final review under the EFF arrangement. This means that after the review this month, SDR 17 million or about US$23 million will be made available to Barbados.
Prime Minister Mia Mottley is expected to make a decision in coming weeks on whether she will enter into another IMF programme.
During her visit this week, Georgieva is expected to meet with policymakers and student leaders from the University of the West Indies (UWI) to hear some of their views and perspectives on a range of related issues.
She is scheduled to have discussions on how the Caribbean Regional Technical Assistance Centre (CARTAC) can contribute more to regional efforts to promote economic opportunities and resilience amidst the global recovery.
Georgieva, who said she was grateful for the invitation from Prime Minister Mia Mottley to visit Bridgetown, is also expected to engage in a high-level panel discussion examining the building of resilience and sustainability in the Caribbean.
She told Barbados TODAY the IMF remained committed to helping Barbados and the rest of the region to meet the challenges head on.
“The IMF is your steadfast partner and friend. We are deeply committed to collaborating and engaging with countries in the region and lending a helping hand to meet the challenges ahead – be it through our policy advice or financial support, or by helping to strengthen the capacity of the region. By working together, I am firmly convinced that we can build even more resilient and inclusive economies that will benefit everyone in the Caribbean region,” she said.
marlonmadden@barbadostoday.bb
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