Look to IMF, says former PM

Former Prime Minister Owen Arthur is adamant that Barbados cannot get out of its current debt trap without aid from multilateral institutions like the International Monetary Fund (IMF).

Agreeing with statements from Finance Minister Chris Sinckler and Opposition Leader Mia Mottley that the debt situation must be the first priority, he nevertheless accused them both of not being more forward thinking, noting that Barbados’ maturity debt stock over the course of the next administration would be around a staggering $3 billion – a sum of such a magnitude that could not be addressed without the help of the fund.

Insisting that the Freundel Stuart-led administration looks toward the fund for such assistance, the Independent Member of Parliament for St. Peter pointed out that several of the island’s Caribbean neighbours had to take such a step and were currently undergoing debt refinancing through IMF programmes.

“Barbados is not going to be able to deal with the $3.3 billion debt crisis that looms and that both sides say they want to deal with, unless Barbados deals with it, not unilaterally but under the hospices of the credibility attached to it by a multi-lateral institution such as the International Monetary Fund,” he said.

Addressing the debate in the Lower House yesterday on the Appropriations Bill 2017, Arthur added, “This is a powerful reason for us to engage with the International Monetary Fund. We are not going to get over the matter which both sides of the House say is the most important unless it is under some institutional arrangement that gives credibility to the creditors of Barbados that the government of Barbados is not acting unilaterally in the matter.”

Admitting that the relationship with the IMF would not be an easy one, he insisted that Barbados “cannot turn its back on having its debt restructured under a fund programme.” (JMB)