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The International Monetary Fund (IMF) has concluded its 2026 Article IV consultation in Barbados. The team, which visited Barbados from May 4 to 14, was led by Michael Perks.
At the end of the mission during which the team also discussed the island’s homegrown Barbados Economic Recovery and Transformation Plan 2026 (BERT 2026), Parks announced that the IMF and the Government of Barbados have reached a staff-level agreement on a new 36-month precautionary Stand-By Arrangement (SBA). The arrangement will make approximately US$260 million (SDR 189 million) in financing available to Barbados should it become necessary.
Announcing the outcome of the visit, Perks said:
"The SBA will provide insurance against external shocks, while continuing to anchor macroeconomic stability and support reforms under the homegrown BERT 2026 Plan. The latest phase of the BERT Plan focuses on economic transformation, with emphasis on boosting productivity and competitiveness, strengthening fiscal sustainability, deepening financial markets, strengthening human capital, and enhancing climate resilience."
He added that “the new precautionary SBA will support the BERT 2026 Plan’s transformation agenda by helping maintain prudent macroeconomic management.”
The agreement now goes to the IMF's Executive Board for final approval, which the Fund expects to consider in June 2026.
In his statement, Perks also confirmed that Barbados' underlying economic performance remains strong and forecast that “growth is expected to remain positive in 2026, though at a more moderate rate, as external headwinds are partly offset by tourism-related construction and rising public investment.” He, noted, however, that "the outlook remains subject to unusually high uncertainty, with risks tilted to the downside," with higher commodity prices expected to place upward pressure on inflation and the current account deficit.
Perks cautioned that “any fiscal measures responding to external shocks should be temporary, targeted to the most vulnerable, and consistent with the fiscal anchor,” adding that “disciplined fiscal policy will also help to maintain ample international reserves and support the exchange rate peg, which remains an essential anchor for macroeconomic stability.”
Read the full IMF statement here.
An IMF Stand-By Arrangement (SBA) is a financing instrument that gives a member country the right to draw on IMF resources up to an agreed amount during a set period. A precautionary SBA is one the authorities intend to treat as insurance – they do not plan to make any drawdowns unless an unexpected external shock materialises.