Barbados Launches ‘Emergency Plan’ to Tackle Massive Debt

Barbados has announced an “emergency plan” to tackle its mounting economic crisis, including restructuring its public debt, after the Caribbean country’s new government discovered that its liabilities were much worse than thought, reaching 175 per cent of gross domestic product, the Financial Times reported. The Barbados Labour Party, led by Mia Mottley, came to power in an election in late May, propelled by the failure of a tough austerity programme implemented by her predecessor to turnround the island’s economic and fiscal crisis. In a statement released on Friday, the country’s finance ministry said that after a review of the government’s finances it had discovered “substantial arrears that were not previously included in headline public debt figures”, which lifted Barbados’ debt-to-GDP ratio to over 175 per cent. Read more. (Subscription required.)