During his monthly press conference on Wednesday this week, Douglas indicated that the government of St. Kitts and Nevis incurred debt, knowing the cost would be short term, but the benefits would be long term, for the people of Federation.
He added, “My government’s development thrust and disaster rebuilding efforts created a debt to GDP ratio of some 199%. Despite this however my government never once reneged on its financial obligations.” This however is not necessarily the case, as the government has in fact, at times, not met its repayment obligations.
Douglas outlined that they sustained highly beneficial relationships with their creditors throughout this period. He also emphasized that the discipline, vision and the competences which have consistently managed the federation’s economy have been evident for all to see.
The Prime Minister continued, “As a result we were able to successfully negotiate the restructuring of our country’s debt. Not even for one moment would our creditors thought that we have squandered the money that we had borrowed. As a result St. Kitts and Nevis now has a dramatically improved debt to GDP Ratio of some 157%. I want to emphasize that by the time we would have completed the entire debt restructuring exercise it would be closer to the 100% mark.”
The exercise has been undertaken with the international creditors and regional creditors, Douglas said and they are at the point where they would be proceeding to Europe to begin negotiating the current debt restructuring exercise with their development partners in Europe and across the world.
“We also of course would be completing the domestic debt reduction exercise and we hope that by the end of November, or there about, everything would have been settled by the new fiscal year by December January we would be able to say that it would be significantly reduced to the level that I mentioned.” he concluded.