BASSETERRE, St. Kitts - THE FEDERATION of St. Kitts and Nevis' debt is no longer increasing but is decreasing rather rapidly as news from a tax website stated that the debt to gross domestic product could fall below the 100 percent mark in the near future.
Tax-News.com reported, under the heading “St. Kitts and Nevis debt on Downward Path”, that the Federation is poised to achieve a "landmark milestone" with regards to its debt reduction efforts, with its debt to gross domestic product ratio set to fall below 100%, from peaks above 200%.
The website's only sources, however, were Prime Minister, Dr. Douglas, and the island's Minister of Information, Nigel Carty who said that following an extensive debt restructuring process, the islands made a further reduction in its debt, moving from 156 percent to 131 percent.
It further stated that the debt to gross domestic product ratio would likely to fall into double figures in the near term as a result of ongoing budget consolidation efforts.
"In 2009, St Kitts and Nevis had the most significant public debt among its Caribbean peers, at 185% of gross domestic product, and the third largest in the world as a percentage of the economy. Following the introduction of a value-added tax and excise tax reforms in November 2010, and the streamlining of import duty exemptions and the introduction of an environmental levy, the government has managed to make inroads into the debt problem and the International Monetary Fund has consistently reported that the territory is making significant strides towards fiscal consolidation under a 36-month financial assistance programme," the website reported.
The website also stated that the islands' Minister of Information, Nigel Carty said that the vast reduction is thanks to the "herculean effort that has been exerted to bring great relief to the country's fiscal position at such an economically challenging time".
