The Government of the Bolivarian Republic of Venezuela has forgiven PetroCaribe’s debt, which was in excess of 180 million dollars, in a show of solidarity.
With this debt relief, St Vincent and the Grenadines’ debt to GDP ratio moves from 95 to almost 88 percent at a time when the rest of the Caribbean has debt to GDP ratios of over 98 percent.
The debt-to-GDP ratio measures a country’s government debt compared to its gross domestic product (GDP) (which represents all goods and services produced by the country).
During a press briefing on Thursday, Minister of Finance, Hon Camillo Gonsalves, said this means that the Government’s fiscal health has greatly improved and funds can be allocated to other areas of development.
Gonsalves also noted that this reduction in the Debt to GDP ratio is encouraging investors to enter the country.
St Vincent’s fiscal profile will be improved by this debt relief when it comes to going to the market with Treasury bills, the Minister added.
Venezuela has also agreed to send up to 2 thousand tonnes of asphalt per month. According to the Minister, Bragsa currently uses 200 – 600 tonnes of asphalt per month for road repairs, which would allow the agency to engage in more road repairs and proper road construction.
Venezuela is a close ally of St Vincent and the Grenadines, providing assistance in every area of national development.
