Public Debt of St. Vincent and the Grenadines Reaches EC$2.8 Billion
Debt Increases by 16.9% Compared to 2023
KINGSTOWN, ST. Vincent, CMC – Finance Minister Camillo Gonsalves says the public debt of St. Vincent and the Grenadines has risen to EC$2.8 billion (One EC dollar = US$0.37 cents), approximately 93.6 percent of the country’s gross domestic product (GDP) as of the end of September last year.
Domestic and External Debt
Domestic debt accounted for 27.8 percent of the total, EC$786.5 million, and external debt, EC$2.04 billion, represented 72.2 percent of the total.
Debt Service in 2025
Debt service for 2025 is estimated at EC$358.2 million of the current revenue, comprised of interest payments of EC$120.8 million, amortization of EC$215.4 million, and sinking fund contributions of EC$22 million.
Differing Views on Country’s Obligations to Debtors
Gonsalves and Opposition Leader Godwin Friday have offered differing views on the country’s obligations to its debtors. While Gonsalves outlined an initiative that he said would continue to impact positively the debt burden in 2025, Friday noted that the national debt will cost EC$358.1 million in 2025.
Presentation of Estimates of Revenue and Expenditure for 2025
Presenting the Estimates of Revenue and Expenditure for 2025, Gonsalves said that the total domestic debt, which amounted to EC$818.5 million as of September last year, increased by EC$179.9 million compared with the domestic debt for the same period in 2023. He said the external debt for the period stood at EC$2.04 billion, an increase of 12.9 percent or EC$232.6 million compared with the year-ago period.
Loans from International Organizations
The government borrowed EC$48.9 million from the World Bank and the International Development Association for the Volcano Eruption Emergency Response Project, EC$33.3 million for the Caribbean Regional Digital Transformation Project, $8.6 million for the SVG Unleashing the Blue Economy Project, and EC$28.5 million for the Human Development Service Delivery project. During the period under review, the government also borrowed EC$45.4 million for the Port Modernisation Project and EC$67.5 million for road rehabilitation.
Debt Suspension Forbearance from World Bank
Gonsalves told lawmakers that St. Vincent and the Grenadines was the first borrowing country to receive debt suspension forbearance from the World Bank under the climate resilient debt clause. The bank launched this clause in early 2024 as part of its Crisis Response toolkit to support countries most vulnerable to natural disasters. "Under this initiative, we’re able to amend some of our existing and new loan agreements with the World Bank to include these climate-resilient debt clauses, which automatically allow for debt service deferral for a period of up to two years once certain criteria have been met whenever there’s a natural disaster of a certain magnitude," Gonsalves said. He said the initiative has resulted in an estimated EC$8.1 million in debt service forbearance from the World Bank for the next two years.
Conclusion
The public debt of St. Vincent and the Grenadines has reached an alarming level, with a significant increase in external debt. The government’s initiatives to reduce the debt burden are ongoing, but more needs to be done to ensure the country’s financial stability.
FAQs
- What is the current public debt of St. Vincent and the Grenadines?
The current public debt of St. Vincent and the Grenadines is EC$2.8 billion, approximately 93.6 percent of the country’s gross domestic product (GDP). - What is the breakdown of the public debt?
The public debt is split into domestic and external debt, with domestic debt accounting for 27.8 percent and external debt accounting for 72.2 percent. - How much is the debt service for 2025?
The debt service for 2025 is estimated at EC$358.2 million of the current revenue, comprised of interest payments of EC$120.8 million, amortization of EC$215.4 million, and sinking fund contributions of EC$22 million. - What is the government’s initiative to reduce the debt burden?
The government has outlined an initiative to reduce the debt burden, which includes debt suspension forbearance from the World Bank under the climate resilient debt clause.
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