Third phase of BERT takes effect

Government will immediately implement what is being called “the third and most ambitious phase in the country’s economic reform journey”, and is banking on financing it with concessional borrowing, international and domestic capital and publicprivate partnerships (PPPs).

The programme document said implementation “begins immediately”, with ministries and “lead agencies” to finalise their annual BERT 2026 workplans and align them with the national budget process.

BERT 2026 is intended to address some “significant challenges” which remain after the 2018 and 2022 economic reform programmes “restored macroeconomic credibility and created space for targeted investment”.

Those highlighted were weak labour productivity growth; persistent investment gaps in infrastructure, housing and innovation; exposure to climate shocks; contingent liabilities from state-owned enterprises (SOEs); and external volatility.

BERT 2026 is built on five interlocking strategic pillars: productivity and competitiveness; debt and fiscal sustainability; financial market deepening; climate resilience and green economy; and human capital and inclusion.

Stabilisation gains

“BERT 2026 . . . builds on the stabilisation gains of BERT 2018 and the growth momentum of BERT 2022 and now shifts decisively toward long-term transformation. BERT 2026 sets out a clear path to build a high-performing, inclusive and climate-resilient Barbados,” the document states.

“The rationale for BERT 2026 is clear. Barbados has made significant progress but the work is not yet complete. BERT 2026 is designed to complete the journey, . . . It provides the roadmap to scale reforms, attract investment, empower people and align national priorities with global sustainability objectives.”

The new BERT programme is the first one to be implemented without the International Monetary Fund’s (IMF) direct oversight.

The plan projects that Government’s gross financing needs, including debt and interest payments, will be $1.71 billion in fiscal year 2026-2027, which starts on April 1, and $2.06 billion in fiscal year 2028-2029 “in line with scheduled repayments”.

“Refinancing needs are expected to ease significantly in the coming years as liabilities mature and are replaced with longer-tenor, lower-cost instruments,” it outlined.

Fiscal framework

“Importantly, the fiscal framework confirms that no financing gaps are projected throughout the BERT 2026 period. Every dollar of requirement is matched with secured or identified sources, reinforcing confidence in the programme’s feasibility.”

Government says that BERT 2026 “is supported by a comprehensive and diversified financing strategy that ensures full coverage of debt service, programme costs, and investment needs”.

Barbados received “significant support”, including loans, in fiscal year 2024-2025 from the agencies including the IMF, Inter-American Development Bank, CAF, Development Bank of Latin America and the Caribbean, World Bank, Africa Export-Import Bank, and the European Investment Bank, including disbursements for social services, housing, and climate adaptation projects.

“These partnerships will remain central over the medium term, not only for financing but also for technical support and programme design. New external disbursements are programmed for fiscal year 2025-26 through fiscal year 2028-2029, with additional bond issuance planned as needed to close financing gaps,” the new BERT plan noted.

Government also said that having issued a US$500 million international bond last June, “this landmark issuance not only strengthens Barbados’ external financing profile with its B+ rating but also signals its re-emergence as a credible borrower in global markets”.

Domestic financing, including Treasury Bills, longer-dated debentures and the BOSS Plus programme, are part of the funding plan.

BERT 2026 will also seek more private sector support by “leveraging PPPs to deliver large-scale infrastructure and service projects” in renewable energy, transport, port logistics, and affordable housing and other sectors.

Strategic direction

While the Ministry of Finance’s Office of the Comptroller General will coordinate the day-to-day execution of the economic reform programme, overall strategic direction will be provided by the Joint Economic Group (JEG).

JEG will be chaired by the Prime Minister and will include “key ministers”, the Governor of the Central Bank, and senior officials from the Ministry of Finance and Economic Affairs.

It will meet monthly to review programme performance, address strategic risks, and approve key policy actions.

The BERT Monitoring Committee, representing the Social Partnership, will remain, and the Fiscal and Growth Councils will also have programme oversight.

“A mid-term review of BERT 2026 will be conducted in fiscal year 2026/27, involving Government, the Fiscal Council, the Growth Council, and development partners. This review will assess impact, recalibrate priorities if needed, and allow for course correction based on new information, shocks, or underperformance,” the document stated.

“This mechanism will ensure that BERT 2026 remains a living document, responsive to reality but anchored in principle.

“In addition, key reforms, such as SOE restructuring, procurement reform, and PPP implementation, will undergo targeted performance audits or value-for-money reviews, supported by technical assistance from partners like the IDB, IMF, and World Bank,” it added. (SC)

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