The International Monetary Fund (IMF) on Friday served notice that a second phase of measures will be needed to help Barbados’ economic recovery.
The warning came in a statement issued at the end of a July 2 to 12, visit to the island by an IMF staff team, led by Bert van Selm, which held discussions with various stakeholders on a pending IMF-supported economic recovery and transformation plan.
The IMF team said fiscal consolidation alongside a comprehensive debt restructuring exercise is critical for restoring debt sustainability and policy credibility.
It added that the budget approved in by Parliament on June 11, in which Prime Minister and Minister of Finance Mia Mottley announced a 1.2 billion Barbados dollars austerity package, was “a decisive step in the right direction”.
The IMF said significant progress had been made during the staff visit on the plan that could underpin financial support from the IMF.
