St Vincent PM says national debt worse than expected

Prime Minister Godwin Friday has described St Vincent and the Grenadines’ national debt as a significant challenge, saying the situation is more severe than he anticipated before taking office.

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Friday said the country’s total public debt currently stands at approximately $3.1 billion, owed to a mix of creditors including bilateral partner countries, the Caribbean Development Bank (CDB), and various financial instruments.

“The debt is owed to various entities, including bilateral partner countries, the Caribbean Development Bank (CDB), and through various financial instruments,” Friday said.

A major concern, he noted, is the strain the debt places on government finances, with 36 cents out of every dollar of government revenue now being used to service debt obligations.

“The country has reached a point where it ‘can’t borrow much more’ and must find alternative ways to meet its obligations,” Friday said.

Beyond the official debt figures, the prime minister pointed to a substantial amount of unpaid payables owed to local businesses. He said the failure to honor these payments effectively removes money from the local economy, though he declined to provide a specific figure for these arrears during the interview.

Friday said the $3.1 billion debt burden is the primary reason his administration intends to move forward with a Citizenship by Investment (CBI) programme by 2026, arguing that the country needs new and sustainable revenue streams to plan for the future.

He characterized the overall state of government finances as “tight” and confirmed that the finance department’s transition document revealed a fiscal situation worse than he had expected prior to taking office.