During a heated parliamentary debate, Opposition Leader Ralph Gonsalves threw his support behind the $20 million US OPEC Fund loan, while simultaneously accusing the Friday administration of presenting a “jaundiced” version of the facts. Gonsalves asserted that the loan facility was “inherited largely from the work of the previous administration” and was essentially handed to the current government “on a platter”.
Gonsalves characterized the agreement as “good debt,” noting that engagement with the OPEC Fund for International Development (OFID) had been a long-term strategic move by his United Labour Party (ULP) administration. He provided a detailed timeline, noting that bilateral framework agreements began in 2016 and that the original hospital financing—which this loan replaces—was internally approved by OFID in September 2022.
While Gonsalves expressed regret that the current government was only able to secure $20 million instead of the $30 million his administration had initially sought, he acknowledged the terms were favorable. He noted that while the interest rate is low at 1.25%, the government is also required to pay a commitment fee of 0.5%.
A major point of contention during the session was the fulfillment of the “prior actions” required to trigger the loan. Prime Minister Godwin Friday had earlier claimed his government “met in train” the necessary regulatory objectives, but Gonsalves flatly rejected this.
“Every single one of the two pillars and all five prior actions… were done during the time of the ULP administration,” Gonsalves told the House. He cited specific dates, such as the National Comprehensive Disaster Management Policy approved in February 2025 and the National School Safety Policy from September 2024, to argue that these milestones were completed while he was in office.
Gonsalves used the debate to launch a broader attack on the Friday administration’s fiscal performance. He argued that the national debt remains manageable, rejecting the need for “austerity” measures. He pointed out that external debt servicing currently accounts for only 16% of revenue.
However, he expressed deep concern over how the government is utilizing its borrowed resources. Analyzing local bond raising between April and June, Gonsalves claimed the government spent 80% of those funds on recurrent expenditure, such as salaries, and only 21% on capital projects.
“The capital program is not moving because you don’t have the resources,” Gonsalves said, warning that without a shift toward capital investment, the government is simply “putting pressure on the budgetary numbers”.
Gonsalves also clarified why his administration originally moved away from the OFID hospital loan in favor of Taiwanese financing. He explained that a complicated bidding process with the World Bank had left only one viable bidder—a mainland Chinese company involved in a lawsuit in Ecuador. To avoid delays and being “held over the barrel,” his administration secured alternative funding from the Export-Import Bank of Taiwan at a rate he claimed is effectively capped at 3.5%.
