The St. Lucia government Tuesday said that the island’s debt at the end of July is EC$3.93 billion (One EC dollar=US$0.37 cents) saying that for the next three months it will have no access to institutional lending.
Prime Minister Phillip J. Pierre told Parliament that the last administration had been reckless in its financial management.
“As of July 31, 2021, the former government has used EC$301 million meaning that of the COVID-19 borrowings this government only benefitted from EC$19 million of these loans. My government is able to draw down on a US$10 million loan from the Republic of Taiwan,” Pierre told legislators.
“We have found a situation where government expenses have to be financed from revenue, rollover financing, and bond financing, and treasury bills. For the last three months and before the next budget cycle begins, we have no access to institutional lending as was available to the last government,” said Pierre, who is also Finance Minister.
Pierre, expressing the state of the country’s finances when his St. Lucia Labour Party (SLP) administration came to power on July 26, said St. Lucia now requires prudent financial management to avoid falling into “a financial abyss”.
In a breakdown of the debt, Pierre told parliament that the public debt is estimated at EC$3.932 billion, local payables EC$154 million, design finance contracts EC$184.5 million, unpaid land acquisition EC$60 million and EC$27 million owed to the University of West Indies.
“Other balances due by ministries, example, Ministry of Economic Development is indebted for work done under the Constituency Development Programme (CDP) is EC$4.18 million, even if the grant allocation by the Taiwanese was provided to cover CDP payments,” Pierre said.
He said the former government, which was headed by Allen Chastanet had received five loans totalling EC$323.8 million from four existing international creditors.
Pierre said that his administration’s first 100 days in office “underscores our sworn commitment, regardless of circumstances, always to put the St. Lucian people first”
Prime Minister Pierre said that despite the challenges, he remains optimistic about the future.
“Our tourism sector is on the up. Businesses are beginning to return to some normality. Investors are showing greater interest in St. Lucia,” Pierre said, adding that there are plans for some significant capital works.
“I call on the St. Lucian public to be patient. We are in government to work in the interest of the St. Lucian people,” Pierre said.
Tuesday’s sitting of the Parliament provided the first opportunity for Chastanet to make an appearance since the change in government.
Supporters of ruling party as well as the main opposition United Workers Party (UWP) were presented outside the Parliament beating drums and cooking pans, cheering for or against Chastanet as he made his way to Parliament.
Chastanet told reporters he felt fantastic and was overwhelmed at the response he received from UWP supporters.
“The opposition will do everything we can to hold this government accountable, and if we cannot hold them accountable in this parliament, we will hold them accountable in that parliament,” Chastanet said, pointing to supporters lined up outside the building.
“I always knew that the supporters were there. But, while it’s 15-2 up here, it was not 15-2 in the polls,” Chastanet said.
Source-CMC
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