IMF Warns Against Investing in Marketable Assets
Following the conclusion of the 2026 Article IV mission to St. Vincent and the Grenadines, the International Monetary Fund (IMF) has strongly urged the government to take decisive policy action to address its soaring public debt.
The IMF Mission Chief Sergei Antoshin warned that “Public investments in marketable assets can have distortionary economic effects and are discouraged”.
Furthermore, the IMF specifically advised the government against establishing a proposed national development bank. The IMF cautioned that the upfront capitalization and ongoing fiscal costs of such an institution would create additional contingent liabilities and directly conflict with the country’s urgent need for fiscal consolidation.
Rather than mandating the sale of current assets, the IMF’s strategy for tackling the nation’s “high risk of debt distress” focuses heavily on expenditure streamlining and strict fiscal consolidation. The IMF recommended:
Improving the primary balance by 11 percentage points to reach a 3% of GDP surplus by 2029.
Reducing the historically high public wage bill through natural attrition and wage moderation.
Ensuring that any revenue generated from a potential Citizenship by Investment program is used solely for debt reduction.
Prime Minister Dr. Godwin Friday acknowledged the severe fiscal trajectory, noting that debt could hit 145% of GDP by 2031 if current policies continue. While the Prime Minister did not announce any state asset sell-offs, he did confirm that the government is trying to root out inefficiencies across the public sector.
“We had started it with the statutory enterprises you know we’re doing a review there and we will that completely but other departments of government other functions of government we will look at as well to make them more efficient,” Prime Minister Friday stated, emphasizing that these entities must generate value rather than act as a drag on economic growth.