The government will use the nest egg that is the Contingency Fund as well as borrow to rebuild St. Vincent and the Grenadines after the devastating impact of Hurricane Beryl on Monday.
The storm is reported to have claimed at least one life and damaged hundreds of buildings across the country, including 90% of buildings in Union Island.
Prime Minister Ralph Gonsalves said to help finance the rebuilding, the government will use money from the Contingency Fund, which is capitalised by a one-percentage-point contribution from the value added tax.
He said some of money was used during the COVID-19 pandemic and the volcanic eruption in 2021, but since then, the fund has built up “quiet a tidy nest egg.
“A rainy day has come and we have to use some of that money or, indeed, all of it. It is not going to be sufficient.”
The prime minister said the country will have to also borrow to pay for the recovery, adding that there are few countries or insituations that will give grants.
“Of ocurse, we will borrow on very concessional terms,” he said, adding that the only problem with this is that there are often delays.
“I am giving our people a clear idea as to how we have to proceed, how we are going ahead, but I think together we are going to be able to pull through, get over this and continue on a path of sustainable development.