Politics
Barbados to receive up to $100 million in EU grant funding
Barbados National Bank
The European Union advised that it is willing to provide BDS$100 million (One BDS dollar = US$0.50 cents) to Barbados in grant funding. In a statement issued following talks between Barbados and EU delegations, it was noted that the funds would become available once certain macro-economic and public finance criteria were fully met. The statement also said that BDS$65 million could become available to Barbados this year.
Last year, the European Union released BBD$28 million for the Barbados Human Resource Development Program while another BBD$15 million, in the form of non-reimbursable grants, was provided through the Barbados Renewable Energy Program. The EU delegation was led by Ambassador Mikael Barfod while the Finance and Economic Affairs Minister, Chris Sinckler, led the Barbados team.
Barford told Sinckler, “The EU would like you to know that it could assist Barbados in leaving the present crisis behind.” The Barbados government has begun laying off employees as part of a strategy to revive the ailing economy and has also indicated that it would not be rushing to fill vacancies within the public service.
The government’s policy has come under fire from the trade unions and even one senior minister, Dr. David Estwick, the agriculture minister, said that the government was using the “wrong medicine” to deal with the economic problems facing the island.
The statement said that during the meeting, Sinckler had also “inquired whether the EU could also assist with the financing of infrastructure projects outside of the traditional grant assistance it provides Barbados”. The statement also quoted Ambassador Barfod as advising that the Stuart government should seek to access financing from the Caribbean Investment Facility, in addition to EU funds allocated to the Caribbean Community (CARICOM) for regional projects and program.
The statement said that the European diplomat had also called for more information on how the government intends to manage its debt in the medium term and that he also wanted to hear more about the package of reform that the government had begun undertaking.
The Ambassador went on to congratulate Sinckler “on the positive assessment of Barbados” in the World Economic Forum’s 2013-2014 Global Competitiveness report. Furthermore, Sinckler informed the meeting that most of the revenue raising measures of the restructuring program would not take effect until next fiscal year.
