BASSETERRE, St. Kitts - PRIME Minister Dr. the Hon. Denzil Douglas reasserted this week that loan agreements between St. Kitts-Nevis and Venezuela are made to benefit the nation through debt consolidation.
Tuesday (June 23) on the Prime Minister’s radio call-in programme “Ask the PM”, one concerned listener asked Douglas if the recently-signed US$50M loan from the government of Venezuela was a signal that the government was having difficulty paying its national debt.
The Prime Minister categorically denied the accusation.
“No, we are not having difficulties, but we are constantly reviewing and attempting to find easier ways of financing our debt. One thing that we have always been thoughtful of is our ability to pay our debt.”
He went on to say that International Monetary Fund had even praised St. Kitts-Nevis for the way it handles its debt and had never accused the nation of “defaulting, or even thinking of defaulting” on loan payments.
He stated that the general public must realise loan arrangements like the most recent one with Venezuela would allow the nation more freedom in paying its debt.
“Everybody talks about the enormous debt that St. Kitts-Nevis has, and now we are trying to find easier ways of financing it people look like they are vex with us.
“The debt can be accounted for, but we must constantly review it to ensure that there is no additional burden on our people in financing the debt. So, we go out from time to time and we see ways and means by which we can refinance the debt,” Douglas said.
Under the agreement with Venezuela, St. Kitts-Nevis would have a longer term under a lower interest rate to pay back its some of its existing debt.
“It is not necessarily that we are having a problem in [paying debt], but [taking the Venezuela loan] eases the burden of paying the debt,” the Prime Minister stated.
He added that the loan arrangement with Venezuela is so beneficial, that the Federation is currently working on a similar agreement with an as yet unnamed nation.
“I am not ashamed to tell you we have asked Venezuela to assist us in this regard. We have asked several other countries to assist us.
“Very shortly, we will be having negotiations and discussions with another country that we believe has enough financial backing to assist us during this period of debt refinancing. That is what I think we need to do,” he said.
