CARICOM member states face a “perfect storm” as a result of the COVID-19 pandemic and the deepening debt crisis.
This was one of the points raised by CARICOM Heads in their 41st meeting via videoconference on October 29th.
The communique released on October 30 said that Heads acknowledged that the COVID-19 pandemic exacerbated the development challenges already facing the Community and that CARICOM States have been more deeply affected than other developing states.
“Member States are now faced with a perfect storm of a public health crisis, an economic crisis and a deepening debt crisis”, the communique asserted.
Heads agreed on the need to protect lives, while restoring livelihoods through policies and measures for the gradual and safe return to economic life.
Heads, the communique said, noted that the economic prospects for the Caribbean had worsened and cited a report by the International Monetary Fund that the Caribbean is the most affected globally by this pandemic, given its dependence on tourism.
Heads of Government noted that the pandemic would also worsen already high deficits and debt in many countries in the Region and building back better would have significant capital requirements which required a multi-pronged financing plan.
In that regard, Heads agreed to the concept of a Caribbean Economic Recovery and Transformation (CERT) Plan, which has been devised by a regional team of experts under the leadership of the Prime Minister of Barbados, Mia Mottley.
Heads of Government called for a new Special Drawing Rights (SDR) allocation by the International Monetary Fund as well as the refinancing of COVID-related debt into long-term low interest instruments.
Guyana’s President Irfaan Ali took part in the summit.
