Opposition Leader Dr. Ralph Gonsalves has raised severe concerns over the state of public finances, revealing that the national overdraft at the Bank of St. Vincent and the Grenadines (BOSVG) reached $243 million as of September 30. This amount represents nearly three times the statutory $85 million limit approved by Parliament.
Speaking on radio, Gonsalves warned that the sustained, elevated overdraft level has created deep anxiety among bank executives and regional central bank regulators, leading to emergency consultations between bank leadership and Prime Minister Dr. Godwin Friday.
According to Gonsalves, the government faced acute cash flow shortages when attempting to meet September salary commitments for public officers and state workers.
Payroll was only met after a late influx of approximately $7 million in revenue collected by Inland Revenue and Customs in the final days of the month, coupled with a $10 million withdrawal from the national Contingency Fund.
Gonsalves argued that raiding the Contingency Fund—a emergency “rainy day” reserve created primarily for natural disasters and public health crises—violates statutory regulations.
Under the governing legislation, accessing the fund for non-disaster economic management is prohibited unless the total fund balance exceeds 20% of the average actual current revenue collected over the preceding three years.
With that statutory threshold standing at approximately $150 million, and the fund holding far less, Gonsalves asserted that the $10 million withdrawal was legally unauthorized
