Bridgetown.
The Government of Barbados is preparing to negotiate a major policy based loan with the Caribbean Development Bank (CDB).
Although Dr Warren Smith, the incoming president of the CDB did not disclose the size of the loan, he said it follows a recent $50 million advance to the island as it tries to take control of a worrying fiscal situation.
Policy based loans have a number of conditions that a country must meet.
According to Smith. Barbados ' homegrown prescription for cutting the deficit and slowing public spending has already got the thumbs up from the CDB.
"What we did is to look at the series of reforms that the Barbados Government has crafted. We assessed them from the standpoint of their adequacy and their stuitability to addressing the underlying concerns in the economy", says Smith.
He added: " The fact that we have accepted those conditions are indicative of our general approval of the steps that are being taken".
Dr Smith takes over the post of president of the CDB from Dr Compton Bourne on May 1.
