...Large fiscal deficits, a high debt burden that continues to rise, and narrower financing options constrain Standard & Poor's Ratings Services' ratings on Barbados. Financing the government deficit continues to rely on official and central bank funding given a reduced appetite in both local and external capital markets. The government did, however, issue a small amount of savings bonds in the local market in June 2015. The National Insurance Scheme (NIS) is less able to finance the government than in the past because of its declining surpluses. Financing from local banks is increasingly based on shorter tenors and higher interest rates. The last government issuance in global capital markets was in 2013. The government succeeded in lowering the central government deficit to 6.9% of GDP by the end of March 2015, from 11% of GDP in the previous fiscal year ended March 2014. This is a significant reduction, reflecting the government's commitment. However, the government didn't fully meet its...
