The Structural Adjustment Programme implemented by the St. Kitts-Nevis Labour Party Administration leading to the continued reduction of the debt to GDP ratio in St. Kitts and Nevis, has been hailed as a very successful.
The praise has come from the Managing Director of the International Monetary Fund (IMF), Ms. Christine Lagarde in Jamaica last week.
Ms. Lagarde, in delivering the opening address of the 2017 High-Level Caribbean Forum at the Jamaica Pegasus Hotel, trumpeted St. Kitts and Nevis, Grenada and Jamaica as exemplary countries for the region having successfully implemented reforms to bring down their debt levels.
St. Kitts and Nevis has been acknowledged by the IMF previously for its work in the reduction of the debt to GDP.
In October 2013, Ms. Adrienne Cheasty said that there was a surplus that year and the debt is coming down.
In 2014, St. Kitts and Nevis became the first country in the world to return a US$40 million loan to the International Monetary Fund (IMF).
The IMF also said that debt reduction is “on a sustainable path, projected to reach a low of 60 percent of GDP in a few years.”
Former prime minister Dr. Denzil Douglas was widely praised for his leadership in the development and implementation of the home-grown structural programme and returning the economy to positive growth in spite of the global economy which continued to negatively impact many countries in the Caribbean region.
Ms. Lagarde is proposing the convening of a special event with all the major private and public stakeholders to explore options for building resilience in the region, that include risk mitigation and debt management strategies.
“We want to do it with the Caribbean authorities and the people and to cooperate with all international funding organisations that are willing as we care for not the short term fix, not plugging the hole but thinking about how we can build prevention, precaution, defences going forward in order to anticipate what is bound to happen again and perhaps with more veracity than it has,” IMF’s managing director reasoned.
The special event, she said, will include the World Bank, the Caribbean Development Bank of the Caribbean, Inter American Development Bank and other development partners.