Barbados is currently facing a precarious economic and financial period. The newly elected government is facing insolvency given the high level of public debt. Foreign exchange reserves are at critically low levels, representing just over one month of import cover. This challenges the country’s currency and raises the financial risk of a run on the currency. The government will need to enact fiscal consolidation measures and implement structural reforms to support future economic growth. The commercial environment is expected to be negatively affected by a potential domestic debt restructuring scenario, with IMF assistance to the banking system likely necessary.