On February 7, 2003 the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Barbados.1
Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities.
The cash reserve requirement was reduced from 6 percent of deposit liabilities to 5 percent, the government securities requirement from 19 percent to 18 percent, the central banks discount rate from 10 percent to 7½ percent, the minimum savings deposit rate from 4½ percent to 3 percent, and the maximum lending rate from 10 percent to 8 percent.