The Minister in the Ministry of Finance, Dr. Ubaldus Raymond says the government is moving in the right direction with its plans to reduce the island’s debt.
He made the comment ahead of a Senate meeting this week where a motion was considered for the government to borrow EC$262 million for the refinancing of existing debts.
Dr. Raymond said the International Monetary Fund is also pleased with the measures being taken by St Lucia to manage the island’s debt levels.
“We are trying our best to see how we can reduce on the treasury bills which carry higher interest rates and of course higher rollover risks. We are trying to see how we can lengthen our borrowing through bonds of course and to reduce the interest rates on these bonds,” Raymond said.
“As a government, I think we are in the right direction. We are trying to put a debt profile that is very sustainable, that will be able to give the government enough space, in terms of cash flow. We are doing the right thing,” he added.
In its latest report on St Lucia, the International Monetary Fund (IMF) asserted that “corrective measures should be supported by a multi-year consolidation plan to attain the 2030 debt target of 60 percent of GDP.”