BUSINESS MONDAY: NO SHORTAGE!

THERE is no shortage of foreign exchange reserves in Barbados that would prevent the country from meeting its external loan repayments.

So says Dr. Kevin Greenidge, the Government’s Chief Economic Adviser.

In fact, he said that as of June 24 this year, the reserves, which are under the management of the island’s Central Bank, were seven times more than what would be required to cover Barbados’ external debt payments over the next couple years.

Dr. Greenidge, who spoke to Business Monday, said that the reserves at that date amounted to $2.6 billion.

The Government Adviser, who has been seconded from the International Monetary Fund (IMF), said that the economy is projected to grow in 2021 as Tourism begins to recover in the second half of this year.

The economy, he told this business paper, will continue to grow into the medium term.

“And as the economy picks up, we will be earning foreign currency,” he also said.

Recent loan agreements have evoked discussions in the country, with some commentators suggesting that Barbados is borrowing its way out of an economic crisis.

“But on top of that, the country will earn more foreign reserves as the economy begins to recover and economic growth is a reality,” he added.