A contentious debate unfolded in St. Vincent and the Grenadines’ Parliament as Prime Minister Godwin Friday’s administration secured approval for the Public Sector Investment Loan (2026) Amendment Bill, authorizing EC$200 million in domestic borrowing. The legislative move faced vigorous opposition from senators aligned with former Prime Minister Ralph Gonsalves’ Unity Labour Party (ULP).
Prime Minister Friday, whose New Democratic Party (NDP) achieved a landslide 14-1 victory in last November’s elections, presented the bill as essential for financing the government’s public investment initiatives. He emphasized that the raised capital would directly support development programs outlined in recent budget debates, with these obligations constituting a formal charge against the Consolidated Fund under the Finance Minister’s oversight.
Opposition Senator Carlos James challenged the administration’s characterization of the borrowing as “routine,” noting the substantial increase to EC$200 million represented a significant departure from established norms. James referenced the previous government’s emergency borrowing following Hurricane Beryl, which he justified as necessary for national recovery efforts. The opposition senator expressed particular concern about shifting from concessionary external loans (typically 1-3% interest) to commercial domestic rates ranging from 6-12%, potentially burdening Vincentians with heavier debt obligations.
Agriculture Minister Israel Bruce delivered a sharp rebuttal, labeling James’ arguments as “disingenuous” and mathematically inconsistent. Bruce produced budgetary documents showing the ULP administration had itself increased local borrowing by EC$84 million in 2025 while adding EC$54 million to external debt. The minister questioned the opposition’s sudden concern about domestic interest rates given their own borrowing practices, emphasizing that “numbers don’t lie” in assessing fiscal responsibility.
The bill ultimately passed through all legislative stages, marking the Friday administration’s continued implementation of its economic agenda despite parliamentary resistance.