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

Chapter 5: Some Notable Developments 237 Policy was signed by the social partners during 1993. Through this framework, the parties agreed to work together to achieve stable, non- inflationary growth and a viable balance of payments. Meeting the later programme targets During the rest of 1992 all of the programme targets were achieved. It is noteworthy that, although loan and divestment proceeds which were expected in the third quarter did not materialise, the NIR target for end-September was still met. Conversely, there was some difficulty meeting the fiscal target for September, in particular, since the better-than- expected outcome for public finances in the second quarter had encouraged an increase in spending between July and September and revenue collection was weak. In the following quarter, inflows of foreign capital for a west coast hotel and the conversion of two short-term facilities into medium-term loans ensured that the December 1992 NIR target was not a problem. In the face of a decline in financing from the Central Bank the NDA targets were achieved with some ease. Significant revenue intake in December (particularly from land, corporation and consumption taxes) was helpful in meeting the target for the fiscal deficit. During this period, there had been talk of early restoration of the eight per cent wage cut in the public service. At its meeting of November 26, the Bank’s Board agreed to advise the minister that such a move would negatively impact public finances, send misleading messages to the labour market and cause the multilateral financial institutions to harden their positions. No structural adjustment as the programme ends Several of the agreed structural changes remained elusive as 1992 drew to a close. At the end of November, the IMF team that was returning to Washington, left a list of priorities in this regard. These included the