By Jada Chambers
A buildup of local debt, an “illegal” overdraft facility, and EC$178 million in unpaid bills have put St. Vincent and the Grenadines on track to see its public debt hit 140% of its economic output by 2030.
Prime Minister Godwin Friday delivered the financial breakdown during his inaugural Independence address at the Arnos Vale Playing Field on Tuesday, using the nation’s 47th anniversary of independence to lay bare the country’s fiscal challenges.
Citing figures from the International Monetary Fund (IMF), Friday noted that the national debt stood at 113% of the gross domestic product (GDP) in 2025, and said that without course correction, the national debt would hit the 140% of GDP within the next four years.
“The overall fiscal deficit in 2025 was approximately 12% of the GDP … that is unsustainable,” Friday said.
He added that unpaid government bills amounted to EC$178 million, EC$25 million of which is owed to local suppliers and contractors.
“The overdraft facility operated by the government was too high, being in excess of the legal limit of $85 million set by Parliament,” Friday stated, adding, “It was operating illegally.”
He said that several important infrastructure projects funded by external development partners, such as the World Bank and the Saudi Fund for Development, are behind schedule and risk termination to the nation’s detriment.
He said that these systemic fiscal problems were not created in the 11 months since his administration took office, but they have already started working on rectifying these issues.
“They developed over many years, but the responsibility to fix them now rests with me. I accept that responsibility, and my government is ready to work.”
Friday told listeners that as the Minister of Finance, he understands what these economic figures mean for everyday life.
“Debt repayments leave less money to improve public services and to invest in creating opportunities for our people, or to prepare for the next climate-related event, or the next external economic shock, as we are having now with the oil crisis.”
Friday stated that while the government will change course, it cannot do so alone.
“We need friends in the region and in the international community to help us to succeed, and they are willing to do so.”
He explained that the government continues to cultivate these partnerships in an “unpredictable world” in which “old alliances shift,” and “friendships fade quickly.” Friday added that multilateralism has retreated in the face of “emboldened and unapologetic” assertion of power.
“It is vitally important that we remain focused in what is best for our country? We remain on good terms with all nations…”
Friday stated that the government abhors war, standing for the protection of territorial integrity and national sovereignty. He also said that the government stands for peaceful resolution of international disputes, the reliance on multilateralism as well as the institutions that promote it.
“So we are pleased to see our diplomatic friends and international partners represented here by their delegations and officials,” he said. “We thank you for acknowledging the great importance of this occasion…and we thank you for your partnership with us in so many ways over the years.”
He said that the government looks forward to the years ahead, expressing hope for the continuation of the nation’s bilateral friendships.