Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

128 2000s the BIF’s financial postion deteriorated and by 2009 the focus shifted to rationalising the investment portfolio and containing non-performing accounts. The legal costs associated with this action, coupled with repayments to investors, helped to push up operating expenses. During 2010, the Bank decided to withdraw from the BIF, pointing out that the BIF activities were not part of its core function and that other entities could perform the same role. Some recent developments The Bank collaborated with the Ministry of Industry, Small Business and Rural Development in introducing the Trade Receivables Liquidity Facility during 2010. It was intended to help ease the cash flow of small businesses and, accordingly, financial institutions were allowed to factor the trade receivables of small contractors to a limit of $200,000 for up to 90 days. The amounts were guaranteed by the Bank through the Credit Guarantee Scheme. At the end of 2013, there were seven guarantees outstanding to a total of $360,000; thereafter activity stagnated and by end-2016 only one guarantee was in force. The Tourism Loan Guarantee Facility was established during 2011 to give guarantees to financial institutions that provide funding for maintenance, capital expenditure and servicing of debt in the hotel sub- sector. It had done little or no business at the time of writing. MODERNISATION Like other financial institutions, the Bank was affected by the fast pace of change and the shift in priorities during the 1990s. In light of increased public scrutiny, the demands emanating from the communications revolution and new market imperatives, significant resources were invested in modernising several aspects of its business operations. Examples of this approach were the greater attention to risk management, the more