Govt may have to print money after all

Faced with an expected revenue loss of about $500 million, Government is banking on receiving a $600 million injection from multilateral financiers.

But Central Bank Governor Cleviston Haynes, who outlined the plan on Wednesday, said given the likely reduced tax intake, the Mia Amor Mottley administration might have to reverse its policy of not relying on his institution for funding.

He made the suggestion while noting that the Central Bank, which saw its capital reduced by $1.6 billion in the domestic debt exchange, had delayed its recapitalisation plan in light of the focus on the coronavirus (COVID-19).

Haynes was speaking online during the bank’s first quarter economic review.

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