Prime Minister Gaston Browne has told heads of the International Monetary Fund and World Bank to consider a number of measures to assist small and vulnerable economies like Antigua & Barbuda.
In a letter to IMF Managing Director Ms Kristalina Georgieva and World Bank PresidentnMr David R. Malpass Browne notes the already devastating impact the the COVID-19 pandemic has already had on small economies.
He wants the two institutions and G20 countries to consider at meetings of their Governors in April proposals be included for small and vulnerable economies.
“…including (a) suspension of per capita income as a criteria for concessional financing; (b) debt relief including suspension of debt payments, write-offs of aged debt particularly by the Paris Club; (c) budgetary support through a mix of grants and low-cost loans on a country by country basis.”
In his letter dated March 30, 2020 Browne underscored the calamitous effects of the pandemic COVID-19. He said the pandemic is showing every sign of being worse in its global consequences than the 2008 financial crisis that crippled the world for many years.
He said COVID-19 has been wreaking havoc globally but especially on poor states as well as small and vulnerable ones.
“We also draw to your attention that, apart from the huge, sudden and unbudgeted costs with which my government and other Caribbean governments are confronting to tackle COVID-19 in our countries, we are also beleaguered by an unexpected economic decline that has already stripped us of more than 20% of our GDP in some cases, and the certain prospect of further and prolonged deterioration,” Browne said.
He added that several of our countries are highly tourism dependent. “The stoppage of airlines and cruise ships have devastated our tourism industry. Hotels and other tourism facilities have been forced to close because of a loss of business as well as domestic measures to try to contain COVID-19 and to arrest its spread. The effect of this is a significant and unsustainable drop in government revenues, including foreign exchange, occurring simultaneously with demands for increased government spending to institute new health facilities and to provide such assistance as possible to families whose only money earner has been laid-off.All of this translates into very high unemployment, and an increase in poverty levels that, inevitably, will spur more and varied crime – drug trafficking, probably becoming rampant. ”
Antigua enters a 24 hour curfew from mid-night on April 2 in an efforts to slow the spread of the virus.
Browne who is also finance minister said, “some of our countries were valiantly reducing their debt to GDP ratios and will now be set-back by the urgency to incur new debt to stave-off a humanitarian crisis. In our present situation, the huge decline in revenues and the necessary draw-down on foreign reserves to meet the cost of imports of medicines, medical equipment, and food, will impose upon us the imperative of deferring current debt servicing.
We are also mindful that the Caribbean region is now two months away from the annual hurricane season, predicted this year to be above average with 16 named storms of which 7 will be hurricanes: 3 to 4 being major ones. In the region’s already precarious state, the effects of a hurricane would be beyond catastrophic.”
The prime minister wrote in his letter that “each of our nations is struggling to manage the fiscal demands in these externally generated and desperate circumstances and with scarce and dwindling resources, that are not the fault of our policies or failures. However, we are acutely aware that, in the best-case scenario, it will be at least a year before the tourism industry will return to any semblance of normalcy. Many of our economies will shrink by then, recording negative growth and lacking the capacity to provide the fiscal stimulus required for recovery.
Some of our countries in the Caribbean – including many that are vulnerable to hurricanes – have been graduated from access to concessional terms of financing. Therefore, under the existing criteria, based largely on per capita income, these countries will not qualify for the considerations being given by the Bank and Fund to IDA countries, including financing needs and debt relief or even access to the Fund’s Rapid Credit Facility.”
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They always say that politicions don’t have no shame, after saying all those hurtful things about the IMF, well my Daddy use to say that a dog will always go back to its vomit
Gaston has no choice but to go to the IMF. Give him a break. Yes, he insulted and abused the IMF in a speech a few years ago but that is history. We are in trying times and the IMF will help us. That is their mandate.
Wasn’t we were in trying times during the 2009 world recession when the UPP government when to the IMF? We didn’t have the CIP in 2009 then.
A lot of Caribbean Islands that have more natural resources that we didn’t have in Antigua and Barbuda all went to the same IMF in 2009.
@Russell
The problem is not if we go to the IMF it is who takes us there. Just a month ago the not so commons of this country were cussing Harold Lovell for going to the IMF which was an indication of financial incompetence and mismanagement.
Now that the worl boss leader of the economic powerhouse has to lap his tail and run back to the same woman he cuss off with cap in hand , the IMF suddenly has to help us as it’s their mandate.
St. Kitts and St. Lucia introduced a 100 million stimulus package for their citizens but Antigua the economic growth behemoth has to run begging the IMF. Shame shame shame
Its like you have a crazy scampish uncle who comes to the family gatherins, everybody laughs when he says weird stuff. He is not good with numbers exaggerates his accomplishments but everyone likes him “life of the party” then comes a family crisis where steady apathetic common sense leadership is needed. You then realized “fun” uncle is not so useful after all. That’s when you wished uncle Harold was around.
Like true liberal politicians they always reach for someone else’s money first.
Take that cash out from under the Mattres first try to bail out the country
The best you ,then ask for help
Hon. Gaston Browne has done the right thing to write to the IMF. Very Important.
The Top Dwag returned to his vomit. Be careful who you cuss off.
More money that Antiguans will never see. Just ask the Minister of Tourism.
Dear IMF.
I am coming back to you.With both hands out stretched seeking financial help.I am asking for your compassion at this time.Forgive me for cussing your representative.When she came to Antigua to discuss financial matters with my Administration.I spent the resources of the State like a drunken sailor.I did not save for a very,very,rainy day.Now all dee money garne a yard.And are we broker than a piece a dry stick.Things inna Antigua and Barbuda browner than Gaston Browne.Heaven help us all.
Gaston Browne:Please have a sit down with your counterpart in St Kitts.He does not have any CXC.However,his
Nation has a huge surplus.He did pledge to spend $75 million on roadworks in his New Year’s speech.All of that money would not be borrowed.They have the funds in hand from their CIP. Now he is giving a stimulus of $120 million to the citizens of St.Kitts and Nevis.Antigua made over $1 Billion from CIP according to Gaston Browne. What has been done with all of that money.Could someone in Antigua and Barbuda show me one project built with funds from the CIP.
Bugsy I do not know if when you say that the Prime Minister of St. Kitts does not have any CXC if it was said as a joke in reference to a statement our Prime Minister made in Old Road about some one. Anyway, joke or not the Prime Minister of St. Kitts has a PhD in Economics.
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