Prime Minister Godwin Friday has announced a decisive policy shift to address Saint Vincent and the Grenadines’ substantial national debt, which currently stands at EC$3.1 billion. The newly installed leader revealed his administration’s commitment to settling government debts with local suppliers within 28 days, marking a significant departure from previous payment practices.
During a Christmas Eve interview on Boom FM, Prime Minister Friday characterized the debt magnitude as “quite an eye-opener,” acknowledging widespread complaints from local businesses struggling with delayed payments. The policy initiative represents a long-standing advocacy position of the New Democratic Party, which first championed this approach under previous leader Arnhim Eustace’s tenure from 2000 to 2016.
The Prime Minister articulated the economic consequences of delayed settlements, explaining that government payment delays create a cascading negative effect throughout the economy. “By not settling local debt, the government is essentially taking money out of the economy,” Friday stated. “You’re not paying the people, they can’t pay their staff, they can’t pay their suppliers. That holds everything back.”
The new payment framework will prioritize smaller contractors and routine service providers rather than major infrastructure projects involving complex contractual arrangements. The administration aims to mirror standard commercial payment cycles, with Friday noting that “your electricity bill comes in every month, your phone bill comes in every month, you have to pay your workers.”
While implementing this forward-looking policy, the government must simultaneously address historical debts accumulated before assuming office on November 27. The Prime Minister acknowledged the challenge without providing a definitive timeline for resolution, committing instead to a systematic, incremental approach. “We recognize it as a problem, and we will address it,” Friday assured, asking for public patience as his administration works to resolve legacy obligations.
The Prime Minister characterized current government financing as “difficult” but affirmed his commitment to ensuring that “those persons who are entitled [to payment] are no longer essentially made to carry the burden themselves.” This dual approach—addressing historical debts while instituting prompt payment protocols—represents the administration’s comprehensive strategy to stabilize government finances and support local business viability.