Central Bank operating at a loss
The Central Bank of Barbados has recorded a loss of $3.7 million for the year 2013.
In a highlight of its 2013 annual report, the bank said its operating costs were largely unchanged but the continuing weak investment climate for low-risk securities that the bank was permitted to hold continued to depress income.
“The bank is reviewing options to contain expenditure over the medium term,” it said.
During 2013, the bank was focused on restoring macroeconomic stability to the domestic economy as a weak performance of the key export sectors together with significantly lower foreign capital inflows constrained economic growth prospects.
The bank said these developments placed pressure on foreign reserves, triggering a major policy adjustment to contain the erosion of the reserves, sustain the exchange rate anchor, reduce the fiscal deficit and slow the growth of Government debt.
The primary tool of policy was fiscal consolidation, reflected in increased taxation and expenditure-reducing measures. At the same time, the bank continued to encourage the revitalization of economic activity through growth in the tourism, agro-processing, international business and financial services, and alternative energy industries. (PR)