WASHINGTON, United States (CMC) — The Inter-American Development Bank (IDB) says it has approved a US$100 million project to enhance the effectiveness and efficiency of social policies and ensure the sustainability of social security in Barbados.

The programme, approved by the IDB’s executive board of directors, also aims to improve the coverage and quality of policies that promote gender equality, the inclusion of people with disabilities and the protection of vulnerable groups in Barbados.

The IDB said that in the short term, the project will directly benefit 49,000 pensioners, 133,000 contributors to the National Insurance and Social Security Service (NISSS), 46,000 individuals aged 65 and above, 12,000 people with disabilities, and 1,000 families living in extreme poverty.

Additionally, the programme will enhance the administrative efficiency of both contributory and non-contributory social protection systems, including a digital transformation expected to yield benefits of approximately $80 million per year.

The IDB said the project will also bolster the long-term sustainability of the social security system for both public and private sector employees. It will support reforms to promote the financial sustainability of the general pension scheme and provide greater flexibility for contributions made by the self-employed to the NISSS.

The US$100 million IDB project has a disbursement period of 12 months and a grace period of 5.5 years, the IDB added.