(Barbados Nation) The International Monetary Fund (IMF) has warned Government about its continued use of National Insurance Scheme (NIS) funds.
The IMF caution has come 24 hours after the Central Bank of Barbados defended the controversial use of NIS funds in the stalled Four Seasons hotel and resort project. Governor Dr DeLisle Worrell said NIS investments in entities such as the Four Seasons project and Government instruments were positive moves.
However, the IMF noted that the NIS’ exposure to Government increased from 54 per cent in 2005 to almost 70 per cent in 2011 and this placed it well above the recommended limit of below 54 per cent.
In its full report released yesterday on the Article IV Consultation conducted last November, the IMF urged Government to limit its use of the country’s social security money to finance public sector borrowing.
