St Vincent and the Grenadines are among the 10 Caribbean countries most indebted to the IMF (International Monetary Fund).
St Vincent and the Grenadines which is at number 9 on the list has a debt to GDP ratio of 88% and an overall debt of USD $29,287,283.55 or 78,373,950.00 XCD to the IMF.
Compared to other countries in the region, St Vincent and the Grenadines have been in relatively good standing with the IMF since the country first took out a loan back in 1984.
Over the years since, the country had only drawn on the IMF a few times with relatively small loans. So why is the country on the list?
Well, many countries turned to the IMF during the COVID 19 pandemic in an attempt to bolster their countries budgets and ride a wave out of the pandemic.
Back in 2020, the country took out a series of loans. These loans were part of the IMF’s rapid financing instrument, RFI, which is designed to provide emergency financial assistance to member countries facing urgent balance of payments needs, such as those resulting from natural disasters, public health crises or other external shocks.
The RFI program for St Vincent and the Grenadines aimed to support the country’s response to the COVID 19 pandemic which had significant impacts on the country’s economy and public health system.
The program included measures such as financial support for affected sectors, strengthening of the health system and social protection for vulnerable populations.
While the country was in the midst of the COVID 19 pandemic it was hit again with a natural disaster with the eruption of the country’s La Soufriere volcano, adding another economic pressure into the mix.
Despite the authorities strong efforts to contain deficits, critical fiscal responses to these shocks pushed up public debt.
On the bright side, however, the country’s public debt is still viewed as sustainable and the country’s projected to grow by 5% in 2023, which is expected to put the economy on track to pay back its debt and return to economic stability.
10:Dominica – US $19,963,130.00
9: St Vincent – US $29,287,283.55
8: St Lucia – US $30,580,600.00
7: Grenada – US $35,456,348.00
6: Suriname – US $112,605,200.00
5: The Bahamas – US$ 260,649,600.00
4: Haiti – US$ 276,771,292.20
3: Barbados – US$ 480,394,075.00
2: Dominican Republic – US$ 682,202,600.00
1: Jamaica – US$ 797,954,847.52
