BUSINESS MONDAY: CENTRAL BANK OPTIMISTIC

OFFICIALS at the Central Bank of Barbados are optimistic about the future as it relates to profitability of the institution.

Management of the Bank said they are confident it will continue to generate cash flows to meet its operating requirements over the next 12 months.

That position is outlined in the Bank’s 2020 annual report, which was released recently. The Bank’s Governor Cleviston Haynes  said the institution made a profit of $24 million on its operations last year. This was an increase on the $15 million in profits earned the previous year.

However, it has an accumulated deficit of $1.6 billion, which it said originated in 2018 and was caused by significant restructuring costs to the tune of $1.6 billion.

The Bank continues to perform its statutory purpose and management has reasonable expectations that the Bank will continue to be profitable, officials said.

It was also revealed that the sole shareholder, which is the Government, in conjunction with the Bank, is developing a recapitalisation plan.

Governor Haynes said that considerable attention was paid to the drafting of the new Central Bank of Barbados Act, which was passed into law on December 14, 2020, and to the new National Payment System Bill which will come on stream this year.

“Work continued on the upgrade of the Automated Clearing House to facilitate improved efficiency in domestic payments,” Haynes added in the report.