St. Kitts Urged To Restore Debt Sustainability

News Americas, WASHINGTON, D.C., Fri. Aug. 19, 2011: The government of St. Kitts & Nevis is being urged to urgently restore debt sustainability and achieve a higher growth path.

That’s the advice from the Executive Directors of the International Monetary Fund. The directors say that while the St. Kitts and Nevis economy is gradually recovering from a prolonged downturn, the elevated public debt-to-GDP ratio poses significant risks to the outlook.

They are urging the authorities to pursue an ambitious fiscal adjustment plans which includes a comprehensive debt restructuring.

The directors also suggested that in addition to fiscal adjustment, a comprehensive debt restructuring is key to a sustainable fiscal position while strengthening the oversight of non-bank financial institutions, including the establishment of a Single Regulatory Unit.

St. Kitts and Nevis’ tourism-dependent and highly indebted economy is recovering slowly from a two year-long recession.