Tuesday, August 29 2017 @ 04:00 PM AST
Contributed by: AleemKhan
De-risking has the potential to develop into a threat to Barbados posing a challenge to the country's continued development and economic stability if left unchecked, according to a new Inter-American Development Bank (IDB) study released today. "Early indications are that the de-risking phenomenon may have already begun to erode Barbadosí competitive position as a leading IFC in the Caribbean region. Any sustained loss of IBC business for Barbados will undoubtedly lower government tax receipts, negatively impact employment, and could impact the level of FX availability in the domestic financial system," said authors Allan Wright of the IDB and Bradley Kellman of the Central Bank of Barbados.
TRANSLATION INTO SIMPLE LANGUAGE:
New rules and regulations resulting (from FATCA and AML-CFT) are kicking this sister Caribbean island in the shin as its economic model is heavily reliant on foreign (US$) income.
SOURCE: IDB Policy Brief