Barbadian Banks Slammed For Failing To Assist SMEs

by Amanda Banks, Tax-News.com, London

13 January 2003

Barbados' Minister for Economic Development, Reginald Farley has slammed international and commercial banks located in the jurisdiction for failing to provide sufficient assistance to the nation's small businesses and entrepreneurs.

Speaking on Wednesday, according to reports in the local media, the Economic Development Minister observed that, with the exception of one local commercial bank, banks have largely chosen not to assist in the provision of credit guarantee schemes established by the government on behalf of Barbadian exporters and small businesses.

'The only product of the Central Bank which the banks have utilised is the Industrial Credit Fund, which provides financing for mainly capital investment. That does not help you more than once, because you do not invest in capital and equipment every day,' Mr Farley noted, continuing:

'We have therefore recognised that once again we cannot stake our future on the fact that commercial banks would be commercial banks.'

According to the Barbados Advocate, the Minister then stated that the government would continue with its drive to reform the jurisdiction's financial institutions, in order to ensure that the financing and assistance gaps which currently exist are filled.

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