St Vincent’s Debt To GDP Now Stands At 72 percent

Following 50 percent debt forgiveness on the Petro Caribe Agreement, St Vincent and the Grenadines Debt to GDP ratio now stands at 72 percent.

The benchmark by the Eastern Caribbean Central Bank recommends that countries have a Debt to GDP ratio of 60 percent.

Ambassador to SVG Perez Santana, said it was agreed with the Venezuelan government to apply a 50% Net Present Value (NPV) to the unexpired long-term debt of St. Vincent and the Grenadines.

As of September 28, 2017, this had a value of US$63, 222, 240.75, which once brought at present value, the amount is contracted to US$31,611,120.37.

Prime Minister Gonsalves speaking on the radio Tuesday 5th June said that the Debt to GDP fell some 8 percentage points from 80 percent to 72 percent.

He said the move by Venezuela is one to which this country is eternally grateful.

6 Comments

  1. So according to the PM, it can be inferred that SVG has an external debt of US$3,951,390,040? If US$31,611,120.37 represents 8% of the “external debt”; can I safely assume that 1% of the total debt is US$3,951,390.04? If so, I would recommend that it’s time for the IMF because we are screwed.

  2. A debt to GDP ratio of 60% is quite often advised as being very wise for advanced developed countries.
    SVG is far from being classified as an advanced and developed country and as such as it is, we are a very small country without the resources of a developed nation.
    Therefore we can only be called and classed as an emerging or developing country, whose recommended Debt to GDP ratio, is to be recommended at just 40% in order for us to be prudent in running the nation’s finances.
    According to the I.M.F, our crossing that 40% debt to GDP ratio, can only give SVG much problems in relation to its debt sustainability.
    Indeed, while we may not be at crisis level at the moment nevertheless, it is hard to see where the growth in our economy will be coming from, in order for us to pair down our debts and stimulate growth to create Jobs.
    More international begging no doubt!

    • I do not know where you get the 40% but it makes sense to me. I have noticed that you have a very similar view in economics as I do. However In the very precarious times globally, in the near future even 20% debt may be too much. I agree that we have to ask where any growth will come from when the government only supports Tourism, but because of the lack of support of other sectors that in turn does not support even tourism. We need to wake our government to get them to stop the stupidity of their economics. To change the system and take charge of the management. Only then will be on a better course. In a nutshell, we need to get someone that understands economics in an influential position instead of how it is right now where they do most everything exactly the wrong way.
      We need to implement policy that makes prosperity INEVITABLE and poverty IMPOSSIBLE. unfortunately we are doing the opposite and for that reason we will only continue to become poorer.

  3. One must wonder even if this data is true. In any case if we assume that it is true it is certainly nothing to celebrate. It has been demonstrated that if you get down to zero debt, expect the USA to attack with sanctions or bombs. The whole idea for the “Global Powers that be” is to insure that countries are heavily in debt. Libya had a surplus and Syria had zero debt and look what happened to them! Because the USA is the most heavily indebted nation on earth, “misery loves company” and they hate to see other nations have a better standard of living unless it is based on debt. It makes one wonder how much wealth many nations would have if they had to sell-off assets to get debt levels to zero. Would they even have enough to have a pair of shoes for anyone?Most leaders on earth today are financially irresponsible, not just the government of Saint Vincent. Japan would shock you and here in the Caribbean Jamaica is even worse than Saint Vincent.

  4. I too wonder whether this data is indeed true DeArment knowing what I know. Nevertheless, at such a high level debt to GDP ratio it is most certainly nothing to be boasting about given that a ratio of 40% is the recommended ratio. Worst we have no natural resources other than the fishes in the sea.
    It is a strange world nevertheless with these politicians. I read here on the site that the E.U’s political elite is giving Maduro of Venezuela some U.S $47 Millions in order to alleviate its its situation because of its spiraling debt burden. Yet Maduro for his part is here in turn giving the Gonsalves regime U.S $31,611,120.37 to reduce his debt burden.
    The democratic deficit with all of these political elites is quite telling!

    • I agree James H. If we however notice that we can see our soils as a resource that most countries do not have; as well as extremely clean drinking water (if we stop burning tires and dumping toxic garbage, because it all goes into our water). We can even see unemployed as a resource. They are free to be trained to do something useful as long as we stop the policy that encourages laziness and bad work ethics. We really do need to wake up anyone in politics that has the ability to think, but unfortunately that is a resource we may not have. It took me many years to get anyone to even consider growing coffee, Macadamia or other useful crops. No one knows it but I was actually the one who but the bug in the ear that got Amanjaro to invest in cocoa in SVG. I am still working on getting the government to do more about Avocado and other crops but at present I am still many years ahead of those in decision-making positions in the SVG Government.

Comments are closed.