Barbados is currently in a precarious economic situation and the International Monetary Fund is calling on the government to urgently cut spending.
The call follows this week's IMF visit from a team led by Bert Van Selm to discuss economic policies and possible IMF financial support for government's economic plan.
In a statement, the fund called on government to not only improve the efficiency of the public services by containing wages and reforming pensions, while also exploring options for privatization and mergers, but it’s also calling for a reduction of government transfers to state owned enterprises.
Pointing to the country's unsustainable debt and dwindling foreign reserves, the IMF stressed the need for "substantial fiscal consolidation to place debt on a clear downward trajectory in conjunction with the proposed debt restructuring, and to address balance of payments risks that cloud the country's future."
Although highlighting the difficulties facing the economy, the IMF did welcome government's plans to urgently address infrastructure problems, while seeking to support the most vulnerable during the economic adjustment process.