By Caribbean News Global 
CASTRIES, St Lucia – The fortunes of previous administrations have now succumbed to the present in the expected adventure of borrowing and debt accumulation, scheduled for the sitting of parliament on March 10 and the senate on March 19, 2026.
The expenditure and investment propositions are most notable approaching the end of the fiscal year, March 31.
BE IT RESOLVED that parliament authorises the minister of finance to borrow USD 22,829,181.00 (the loan) from the Caribbean Development Bank (the Bank) to finance the John Compton Dam Raw Water Pipeline Replacement Project, (the Ninth Water Project);
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- USD 4,233,750.00 (the loan) from the CARICOM Development Fund to finance the rehabilitation and upgrade of the Theobalds Water Supply System;
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- USD 781,493.00 for the purpose of providing financing to meet the additional cost of the Patience Community Water Supply Project;
- BE IT RESOLVED that the House of Assembly authorises the minister of finance to invest USD 356,000.00 to purchase three hundred and fifty-six shares in the 2018 General Capital Increase of the International Finance Corporation;
- BE IT RESOLVED that parliament authorises the minister of finance to borrow an amount of USD20,000,000.00 (the loan) from the OPEC Fund for International Development (the financial institution) to assist in financing of Section 1 of the Sir Julian R. Hunte Highway Project from Choc Bridge to Marisule Junction;
- BE IT RESOLVED that parliament authorises the minister of finance to borrow an amount of KD 4,000,000.00 (the loan) from the Kuwait Fund for Arab Economic Development (the financial institution) to finance the expansion of the Sir Julian R. Hunte Highway Project from the Monchy Junction to Gros Islet Town Junction;
- BE IT RESOLVED that parliament authorises the minister of finance to amend the Loan Agreement to borrow from the Caribbean Development Bank’s Ordinary Capital Resources an additional amount not exceeding the equivalent of USD10,813,000.00 (the Additional Loan) for the purpose of providing additional financing to meet the estimated;
- BE IT RESOLVED that parliament authorises the minister of finance to guarantee an amount in the sum of XCD 121,500,000.00 (the loan) from a syndicate of banks led by the Bank of Saint Lucia Limited (the Bank) borrowed by the Saint Lucia Air and Sea Ports Authority to support the financing of the reconstruction of Berth No. 4 at Port Castries;
- BE IT RESOLVED that parliament authorises the minister of finance to borrow an amount of USD 94,871,706.00 from the Export-Import Bank of the Republic of China to finance the implementation of national development projects, initiatives and COVID-19 mitigation measures;
- BE IT RESOLVED that parliament authorises the minister of finance to borrow an amount of USD 17,105,127.00 from the Caribbean Development Bank, consisting of – (a) an Ordinary Capital Resources portion in the amount of US$14,105,127.00; and (b) a Special Funds Resources portion in the amount of USD 3,000,000.00, to finance the Programme for Education Realignment and Transformation Project.
The government of Saint Lucia has commenced an ambitious national development programme for 2026 and beyond, says Prime Minister Philip J. Pierre, with the commencement of his second term in the governance of Saint Lucia, and a “Vision 2030” focus on ‘people-centered’ transformation and infrastructure development.
The infrastructure development programme, inclusive of an upgraded Hewanorra International Airport (HIA): Improvements to water supply infrastructure: Development of seaports: and construction of bus terminals. The government’s investment in citizen security continues with the construction of a police headquarters building and the needed equipment for the police. Prime Minister Pierre has also given notice to “governing under the values of equity, justice and respect for the rule of law.”
St Lucia’s debt sustainability analysis
Saint Lucia’s total public sector debt increased to 78.0 percent of GDP in 2025, driven by a combination of capital project disbursements and budget financing. Despite an improvement in the primary balance, the debt ratio is not on track to reach the Eastern Caribbean Currency Union’s (ECCU’s) debt target of 60.0 percent by 2035, according to St Lucia’s Annual Economic and Financial Review, December 2025. ~ ECCB.
UWP alarmed
The non-existent opposition United Workers Party (UWP) has been reduced to postering in the moment, said in a press release Monday that they are alarmed over the proposed XCD 600 million borrowing:
“This level of borrowing is unprecedented. Never in the history of Saint Lucia has a government sought approval to borrow such a massive sum in a single sitting of parliament.”
According to the UWP, “When the current administration took office in July 2021, Saint Lucia’s national debt stood at approximately XCD 3.93 billion. If the borrowing is approved, the national debt is projected to rise to approximately XCD 5.7 billion.” And by UWP calculation: “If this borrowing is approved, the country’s national debt burden will exceed XCD 31,000 for every man, woman and child in the nation.”
“The question, therefore, arises: how does the government intend to repay these loans? Will the people of Saint Lucia be asked to bear the cost through higher taxes or additional financial pressures in the future?,” the UWP continued.
Saint Lucia is considered a middle-income country with a developing economy that faces challenges related to poverty and inequality.
Enhancing our infrastructure for security and prosperity, 23 April 2025, noted:
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- “ The debt-to-GDP ratio for 2024 was 73.5 percent, in the absence of rebasing;
- ” The overall deficit was 1.8 percent of GDP, decreasing from 3.2 percent in the previous year. The primary surplus was 1.4 percent of GDP compared to 0.2 percent in the previous year;
- ” Debt-to-GDP as of 2024 was 73.5 percent totaling XCD 5.1 billion. External debt accounted for 61.5 percent while the balance, domestic debt, accounted for 38.5 percent;
- “ Bank of Saint Lucia is now the largest in the Eastern Caribbean Currency Union, with an asset base of over XCD 3 billion. For the year 2024, the bank is expected to record a profit of over $100 million.”
Double standards
The UWP is concerned that “the scale of the borrowing being proposed” by the Philip Pierre administration “should concern every citizen,” adding, “ responsible fiscal management requires discipline, transparency and a clear long-term plan.”
It is fair to equate the same to the UWP. While in office, they failed to provide full transparency and responsible financial leadership. And, in their second term in opposition, offers explanatory summaries for deficiencies in lobbying and communication.
Historically, successive governments’ borrowing has been excessive, but quite rightly, not on this scale. However, the race to outperform administrations in the interest of national development is pregnant with politics and adventures for personal wealth accumulation.
The Royal Saint Lucia Police Force (RSLPF) has declared that it is targeting crime syndicates by following assets and money, working with the Financial Intelligence Investigative Authority.
“The RSLPF plans to seize assets from ten criminals who gained wealth illegally under the Proceeds of Crime Act. In 2026, a 127-step strategy will activate laws to address offences and restore order nationwide.” ~ MBC Prime.
However, while members of parliament and the senate are mindful of who will “bear the cost through higher taxes or additional financial pressures in the future,” knowing that they will not be around to be held liable, exhibits the significance of acceleration.
