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Arthur says IMF deal is not sufficient

Arthur says IMF deal is not sufficient
12 Sep

Former prime minister Owen Arthur believes that the agreement reached between Barbados and the International Monetary Fund (IMF) will not be sufficient to deal with the island's ailing economy.

Arthur, speaking at a public lecture hosted by the Cave Hill campus of the University of the West Indies (UWI) earlier this week, told the audience that the proposed Extended Fund Facility with the IMF will not be enough to solve the island's balance of payment problems.

Last week, Barbados and the IMF said they had reached an agreement that will result in the country being given access to almost US$300 million to support a home-grown programme aimed at turning around the economy.

Prime Minister Mia Mottley admitted that the road ahead would not be easy, but emphasised that the country could make it.

Arthur, who served as Barbados' prime minister between 1994-2008, said that in order for Barbados to reduce its debt to gross domestic product ratio overhang which now stands at over 170 per cent of GDP to 60 per cent over a planned period, a very large fiscal effort reflecting a primary surplus will have to be realised over a sustained basis over a long period.