Barbados: Gov’t denies having talks or agreement with IMF

The Barbados government has described as “malicious and unfounded” reports that the island-nation has held talks with the International Monetary Fund (IMF).

Finance and Economic Affairs Minister Chris Sinckler has also rubbished suggestions that Barbados would be devaluing its local currency, (BBD$1 = US$ 0.5).

“There will be no IMF program – not now, not June, not this year, and if we act as we are supposed to act, not in the foreseeable future and absolutely no devaluation of the Barbados dollar,’ Sinckler told members of the Barbados Chamber of Commerce and Industry’s (BCCI).

He said there were people in the country bent on spreading panic and have in the past made statements indicating that the Freundel Stuart administration would be laying off as many as 6,000 public servants because of the financial situation.

“There has been no such meeting that took place and no such discussions have been taking place in my ministry,” he said, adding that because of the global economic challenges “we made choices we believe to be correct.

“Yes, domestic demand has fallen because there is less disposable income, but we know that given what we faced in 2010 and now 2013, that if we do not anchor our macroeconomic policy response around the foreign exchange function in this economy, we will run out of options when those reserves are dissipated.” – (CMC)