The International Monetary Fund (IMF), is warning that the Bahamas is facing a deep recession due to the unprecedented crisis caused by the combination of COVID-19 and Hurricane Dorian.
Mr. Tao Zhang, Deputy Managing Director and Acting Chair said, “The Bahamas was just recovering from the widespread destruction caused by Hurricane Dorian in the fall of 2019, when the pandemic led to a sudden stop in tourism, generating sizable fiscal and external financing needs. The economic outlook remains subject to an unusually high degree of uncertainty.”
The Fund had subsequently approved the nation’s request for an emergency 250 million US dollar loan to meet the government’s need for urgent foreign reserves support amid the meltdown in the tourism industry.
“The disbursement under the RFI will help boost resources for essential COVID-19 related outlays, strengthen reserves, and catalyze additional support from other international financial institutions, development partners, and the private sector,” Zhang noted.
Jenny Billings, Readers Bureau, Fellow
Edited by Jesus Chan
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