January 27, 2006
PM concerned about billion dollar debt

The public debt of St. Vincent and the Grenadines currently stands at almost one billion dollars. This disclosure was made by Prime Minister Dr. Ralph Gonsalves while making the budget address on Monday.

He revealed that as at December 31, 2005 the public debt stood at $985.9 million or 85.2% of the GDP. As a result, debt financing now consumes approximately 22% of current revenue. This, according to the Prime Minister is “of some concern to us.”

He noted that the government has, as part of their “Debt Management Strategy”, taken the decision to “maintain the capital programme within the limit of our capacity to borrow while at the same time balancing our need to develop infrastructure critical to the continued advancement of St. Vincent and the Grenadines.”