Economist: Time to go to IMF

 

Economist Ryan Straughn
Economist Ryan Straughn

An economist is advising the Barbados Government to negotiate an International Monetary Fund (IMF) programme sooner rather than later because it has no chance of meeting its targets in time.

The Freundel Stuart administration is hoping to slash about $35 million from its budget at the end of this financial year which ends March 31, and to achieve a further $143 million in the next fiscal year.

But immediate past president of the Barbados Economic Society Ryan Straughn told Barbados TODAY the Government had “dilly-dallied” too much with the measures for the past six months or so and it was now too late to rescue the economy through the planned fiscal strategy.

We still have a current account deficit of nearly $500 million on the fiscal side, at the end of December,” said Straughn.

The truth is that we might as well just go to the IMF and start the negotiations because the process takes a little time to conclude. So we are better off now . . . Because the one thing we cannot afford to do again is borrow another set of money because the reserves are running out. We need to restore some confidence in the market and the government is, quite frankly, unable to do so. It needs some help.”

Straughn said it would cost Barbados more if the country ends up turning to the IMF when it is “down and out”.

We are almost down and out already but it will simply cost more. The noose around our neck right now is the current account deficit on the fiscal account as well as and the fact that the Central Bank is a willing participant in allowing the Government to continue to spend by printing money,” added the economist.

We absolutely need to go to the IMF and we should have done so a long time ago but clearly Central Bank and the fiscal authorities seem to convince themselves that they don’t need any help when clearly they do. And at this point the International Monetary Fund is the only institution that is capable of remedying this situation given the enormity. This is not a normal fiscal situation that Barbados has found itself in. To bring ourselves out of this we really do need to get some external intervention to bring some order to the public finances,” insisted Straughn.

Saying that the country lost about $100 million in the first month of this year, Straughn forecasted that by the end of March “we will be right back at square one where we would have been had we not borrowed” the $300 million in December.

He said Government therefore had no time to implement its measures to achieve the goals, adding that some “heavy lifting” would be required next financial year.

 

20 Responses to Economist: Time to go to IMF

  1. Hamza Bourne
    Hamza Bourne February 13, 2014 at 10:10 am

    keep ur imf ideas to yourself

    Reply
  2. Hamza Bourne
    Hamza Bourne February 13, 2014 at 10:10 am

    keep ur imf ideas to yourself

    Reply
  3. Angel OfThunder
    Angel OfThunder February 13, 2014 at 10:17 am

    If the government goes to the IMF is a clear sigh that they need to get out of office it show us they have no faith in there own DLP…

    Reply
  4. Angel OfThunder
    Angel OfThunder February 13, 2014 at 10:17 am

    If the government goes to the IMF is a clear sigh that they need to get out of office it show us they have no faith in there own DLP…

    Reply
  5. Princess Tiny Neferua
    Princess Tiny Neferua February 13, 2014 at 11:55 am

    Is that the best you can do..Sir..those words IMF…(in my face)..are flowing freely these past months…I am beginning to wonder..that a lot of people out there can’t get their jobs done…

    Reply
  6. Angel OfThunder
    Angel OfThunder February 13, 2014 at 12:46 pm

    All them in the DLP can’t fix the magnitude of the problems at hand an u Shelly Lewis or the reason Y bajans or crabbing at whats real liberty ….

    Reply
  7. Angel OfThunder
    Angel OfThunder February 13, 2014 at 12:48 pm

    Ur talking with a person that have absolute common sense with a PHD in the study of ways of our life…..

    Reply
  8. Angel OfThunder
    Angel OfThunder February 13, 2014 at 12:53 pm

    U Shelly Lewis put me among ur most best minds an I’ll beat there brain with the common denominator,u probably think I some block kid no I’m that missing stone u didn’t use now u can’t complete ur foundation…

    Reply
  9. Angel OfThunder
    Angel OfThunder February 13, 2014 at 12:59 pm

    Remember the Son of Man didn’t go any school but was the God head of his class,I have Ideas for every aspect of life y u think I’m so forward with my opinions…

    Reply
  10. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:05 pm

    I have so much to say Im. Talking all over the place don’t worry about my words an how I put them,let’s have a meeting with ur best brains vs a high school drop with the brain of a genius put ur $$$$ were ur mouth is….

    Reply
  11. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:07 pm

    I didn’t created the economy problem u can thank the DLP for that I have the solutions but u will have to pay me for my IDEAS…..

    Reply
  12. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:07 pm

    All of them ……

    Reply
  13. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:09 pm

    I give alot of my IDEAS to people who have been successful but because were the Idea came from they were ungrateful to the brain child of ideas…

    Reply
  14. Veroniva Boyce
    Veroniva Boyce February 13, 2014 at 1:11 pm

    Barbadians are educated and some of you have lost common sense along the way. Just reading some of the comments confirm it.The IMF will only intervene when you ask for help and thats choice was made by the Government. If the Government have any respect for the citizens they should tell you the full outcome of the decision made by the IMF minus the technical jargon that no one clearly understands. It is okay for the Ministers to beat around the bush, their guts full. It is the ordinary citizens that is going to feel the pain.

    Reply
  15. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:21 pm

    One thing I learn about humans they live in a world of misconceptions wrong believes an lies etc my I have common sense I see with my naked eye I see it as it is …

    Reply
  16. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:29 pm

    I love people that think they know every thing is the biggest fools to me,u cant know every thing u live an u learn each day from peoples mistakes I’m ready to sit with any MP an help my country with nobility to see our once great Nation out of the hands of blind men…

    Reply
  17. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:32 pm

    Look so much education in Barbados so were the bright minds with the real super Ideas ????…

    Reply
  18. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:34 pm

    To fix the economic problems ??!

    Reply
  19. Angel OfThunder
    Angel OfThunder February 13, 2014 at 1:41 pm

    U know y every one is shock at the problems in BIM because we though we were untouchable but we needed reality to show us how weak our government is an every problem in BIM shows how much the USA an mother outside help have a hand in our Island,u can fool some people but u can’t fool all them at the same time…

    Reply
  20. Veroniva Boyce
    Veroniva Boyce February 13, 2014 at 2:14 pm

    Angel of Thunder, PHD, Super Ideas: There is nothing new under the sun. With God’s and my blessings you go with all the super ideas and advise the Government on the Policies so they can be put in place to turn the economy around. Why let your Sisters and Brothers suffer when you can help? Sometimes being over educated can have it’s handicap. Jenkins is waiting.

    Reply

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