Credit:  Wikipedia Commons /   Capital city   Kingstown,  commercial centre  of Saint Vincent  and The Grenadines 

DIPLOMATIC  TIMES   STAFF

The International Monetary Fund (IMF)  Wednesday approved a disbursement of US$16 million to Caribbean island  Saint Vincent and the Grenadines  under the Rapid Credit Facility (RCF) to address the COVID-pandemic.  According to the IMF,  the pandemic has hit St. Vincent and the Grenadines hard with  tourism receipts  dried up, as tourism arrivals have come to a complete halt.  The economy is now projected to contract
by 5.5 percent —7.8 percentage points below pre-COVID-19 projections.

“The COVID-19 pandemic poses a major challenge to St. Vincent and the Grenadines. The tourism sector, a key driver of economic growth in the country, has come to a complete halt with ripple effects across the economy. Lower tourism receipts and remittance inflows, coupled with decreased foreign direct investment, have given rise to an urgent balance of payments need. The authorities also face large fiscal needs to immediately increase public health spending and support the most vulnerable.”

-Tao Zhang,  IMF Deputy Managing Director and acting Chair

Eastern Caribbean Central Bank Takes Action To Safeguard Financial Stability 

Zhang added that  the authorities have responded to the pandemic by swiftly implementing containment measures and a fiscal package, which includes an increase in funding for the health sector, various public construction projects to generate jobs, financial support to agriculture and  fishery sector, and programs to support displaced workers and the most vulnerable.  “The Eastern Caribbean Central Bank (ECCB) also took measures to facilitate the provision of credit and safeguard financial stability. The ECCB and national supervisors are also working closely and keep intensified monitoring of financial sector vulnerabilities,” Zhang said.   “The authorities are committed to meeting the regional debt target of 60 percent of GDP by
2030. Once the crisis has abated, they plan to reprioritize capital spending, contain the growth
of the wage bill, enhance taxpayer compliance, and rationalize exemptions from import duties
and VAT on imports”

The population St. Vincent and the Grenadines is approximately  110,211 as of 2018. The ethnic composition was 66% African descent, 19% of mixed descent, 6% East Indian, 4% Europeans (mainly Portuguese), 2% Island Carib and 3% others. Most Vincentians are the descendants of African people brought to the island to work on plantations.