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

67 helped to arrange a $17 million bond issue by the industry and also assisted in negotiating a Government-guaranteed euro-dollar loan of US$7.5 million, which was earmarked for the rehabilitation of sugar factories. Relations with other public sector entities The Bank undertook a number of initiatives which helped to enhance the operations and cash flow of public sector entities. During 1976, accounts were opened for the chief welfare officer and postmaster-general. This action facilitated payment of pensions to senior citizens by cheques which were drawn at the Central Bank and encashable at any commercial bank. In the following year, the Bank allowed staff from the Barbados Savings Bank to participate in its in-house training programme, in particular exposing them to the operational and technical aspects of exchange controls. It was also in 1977 that the Bank first extended a short- term line of credit (of $4 million) to the BDB. This facility, which was covered by government guarantees, provided low-cost funding to the BDB for on-lending to small scale industry. Promoting the offshore financial sector During this period, Barbados was being developed as an offshore financial centre and the Bank was in the forefront of this effort. It collaborated with the Central Government and several other public and private sector agencies to promote the offshore business. (The Bank’s involvement is discussed in detail in a section in Chapter 5). Efforts to develop money and capital markets In keeping with its mandate to develop money and capital markets, the Bank from as early as 1977 started to work towards the establishment Chapter 3: Consolidation: 1976 to 1986