IMF approves US$257-million safety net for Barbados
KINGSTON, Jamaica—The International Monetary Fund (IMF) has approved a new 36-month precautionary Stand-By Arrangement for Barbados valued at US$257 million, giving the country access to emergency financing if external shocks create balance of payments pressures.
The arrangement, approved on Monday, June 22, amounts to Special Drawing Rights (SDR)189 million, or 200 per cent of Barbados’ quota. It gives the country immediate access to SDR 47 million, equivalent to US$64 million, although Barbadian authorities have said they intend to treat the facility as precautionary.
The IMF said the arrangement will provide insurance against shocks while helping to preserve macroeconomic stability and support reforms under the Barbados Economic Recovery and Transformation Plan 2026, known as BERT 2026.
“The new precautionary Stand-By Arrangement will provide Barbados with insurance in a shock-prone external environment, while helping preserve macroeconomic stability and supporting reforms under the next phase of the BERT 2026 plan,” said Nigel Clarke, IMF deputy managing director and acting chair of the board.
The fund said Barbados enters the programme in a stronger macroeconomic position, with growth estimated at 2.7 per cent in 2025, inflation averaging 0.9 per cent, and gross international reserves at about US$1.5 billion at the end of 2025, equivalent to around six months of imports.
However, it warned that risks remain tilted to the downside because of global policy uncertainty, geopolitical tensions, elevated commodity prices and Barbados’ vulnerability to natural disasters.
Barbados recorded a primary surplus of 4.2 per cent of GDP in fiscal year 2025/26, while public sector debt is projected to fall from 96 per cent of GDP in 2025 to 91.8 per cent in 2026. The authorities are targeting a reduction in public debt to 60 per cent of GDP by fiscal year 2035/36.
The IMF said the programme will support efforts to maintain strong fiscal accounts, preserve international reserves, strengthen financial stability, improve public institutions, boost competitiveness and build resilience to natural disasters.
