THURSDAY, APRIL 30, 2026
VOLUME 120, No. 18
Our $$$ situation Page 3
www.thevincentian.com
Pannist, Ganja, AIA Page 4
IHS - It’s founder Page 10
Antiguans vote today Page 15
EC$1.50
Sir Louis, Luta respond Page24
IMF ISSUES WORDS
OF CAUTION
EVEN AS IT ACKNOWLEDGED that the country has been at “a high risk of debt distress” since 2016, a situation that was worsened by the COVID-19 pandemic, multiple natural disasters, and global oil price shocks; and that the national debt reached 113% of GDP in 2025, the IMF has stressed the need for “prompt and sizable” action to reduce government spending. In this light, IMF Mission Chief for St. Vincent and the Grenadines Sergei Antoshin, speaking at a joint news conference with Prime Minister Dr. Godwin Friday on Tuesday, April 28, at the conclusion of the IMF 2026 Article IV mission, had some words of warning for the new government of St. Vincent and the Grenadines. The warnings came amidst the NDP government outlining what the Prime Minister referred to as a “homegrown economic stabilization programme” to tackle the nation’s mounting debt crisis.
Stop Public Service Hiring Highlighting that the country’s spending on public servants was excessively high when compared to both its own historical record and international standards, the IMF Mission Chief recommended reducing the public workforce through “natural attrition,” a process where the government simply does not hire replacements for employees who retire or resign. This, the IMF suggested, should ease some of the financial strain
Whether the handshake came before or at the conclusion of the press conference with Prime Minister Dr. Godwin Friday, IMF Mission Chief Sergei Antoshin would have left an earful for him to (re)consider.
without having to resort to layoffs. Prime Minister Dr. Godwin Friday, acknowledged that given the current fiscal situation, his government was willing to make difficult cuts, noting that his administration was forced into having to evaluate “big ticket items like the wage bills, pensions and subsidies”.
Don’t cut VAT One of the enticing campaign promises of the then opposition New Democratic Party (NDP) was to forcibly address what according to observers from all ranks and professions as a “cost-of-living crisis” in the country. One of the ways, purported by the NDP, to tackle this crisis was to cut the rate of the Value-Added Tax (VAT), the standard rate being 16%. The party proposed a 3% reduction and ‘committed’ to introducing same within 60 days of taking office. They took office immediately following their victory at the November 27, 2025 election. But, in a clear and unambiguous language last Tuesday, the IMF Mission Chief Sergei Antoshin urged the government to maintain its valueadded tax (VAT) base, warning there is “no room to lower the VAT standard rate.” Instead, the Chief recommended that government moves towards bringing the special VAT rate (11%) for tourism ” in line with the standard rate of 16%.
And as a reminder, the IMF mission chief said protecting tax revenues was central to reducing SVG’s mounting public debt and high fiscal deficits.
No National Development Bank Another election promise made by the NDP was that they would
establish a National Development Bank, to cater to those small businesses, and those desirous of setting up small businesses, who would not necessarily qualify for assistance from established commercial banks. Continued on Page 3.