Downgraded credit rating not a surprise – PM

Hermisha Rolle, SNO Reporter

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Prime Minister Kenny Anthony

A recent downgrade of St. Lucia’s credit ratings by a regional company did not come as a surprise to Prime Minister Dr. Kenny Anthony, and according to him, it is not unique to the island.

The Caribbean Information and Credit Rating Services Limited (CariCRIS) downgraded the country’s credit rating from BBB+ to BBB, citing severe deterioration in government’s fiscal position and a resultant increase in debt stock, among other reasons.

In a press release, the prime minister said several Caribbean nations, such as Barbados and Grenada, are facing similar fates as they, like St Lucia, grapple with contracting world outputs.

“This is as a result of an extended period of minimal economic growth, partly as a consequence of the continued adverse impact of the global crisis coupled with the fact that very little was done to address the declining fiscal position in the past. For some time now, the government has been explaining the difficult economic realities that face Saint Lucia. From as far back as the 2012/2013 Budget, I indicated that some difficult decisions will have to be made if we are to restore the economic fortunes of our country, ” Dr Anthony said in the release.

The prime minister pointed to strategies his administration outlined in the 2013/14 budget which are hoped to return “the economy to a more sustainable path”.

“To facilitate higher rates of economic growth over the medium to long-term, a number of structural adjustment measures aimed at increasing competitiveness and improving the investment climates will be implemented,” he said.

According to the release, the government is currently pursuing fiscal consolidation centered on restricting growth in expenditure.

“In the 2013/14 approved Budget, recurrent expenditure was reduced by $15.8 million while capital expenditure was cut by $114.6 million, bringing the reduction in total approved expenditure by $130.4 million,” the release said.

“The government of Saint Lucia therefore reinforces its commitment to implement bold measures to reduce the fiscal deficit and curtail the rise in public debt while pursuing polices to boost the economy. In addition, Saint Lucia’s excellent track record on meeting its debt obligations will continue to remain the number one priority of the government,” the press release stated.

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13 comments

  1. When anyone says they were not surprised it means that he or she was expecting the outcome which materialised.
    In terms of the PM's comments, it means that he expected the policies he initiated would have had A very negative impact on st.lucians.
    The question is,why would a prime minister, who promised "better days"impose policies on st.lucians which would put extreme hardship on their economic and social well-being?
    In my view he chose what he thought was an acceptable explanation when there is none.
    Should he have said he was surprised would mean he does not understand ECONOMICS and the problems facing st.lucians,which is the view of most st.lucians.
    PS.How can a man as intelligent as the PM admit he does not understand economics when he tries as hard as he can to portray otherwise?
    Perhaps,a false sense of exaggerated superiority.

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  2. Oh and Nevis just defaulted on its payments. How far behind is St. Lucia

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  3. OH!! we just start feeling the crush, all the islands have felt it already I guess NO more spoon feeding for 'Sweet Helen'...God Bless my Country !!

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  4. I am wondering what the LPM would do if they were also in power because it is always easy to criticize when you are not holding the mantle.Such an irony as St.lucians criticize the PM for the downgrading but still travel and settle in USA,Britain and France who all have their credit ratings down graded as well.Waiting for reply from LPM.

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    • You may refer to this article for a snap shot: https://www.stlucianewsonline.com/commentary-when-ideology-trumps-economic-commonsense/

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  5. oh what ever Kenny. We all know u not gonna seat there again so u doing yr rape and crape cringing down the country and pocketing our hard earned money. "come January tax payers will get a break" yeah rite VAT and income tax sky high. so sick of U!!!!

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  6. how about collecting from the UWP gov't all the monies that they still hold from the TAIWANESE AND FROM RUFUS THE MOROCCO MONIES THAT THEY GAVE HIM TO IMPROVE THE PLAYING FIELD IN CHOISEUL.

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  7. It is also not a surprise to Saint Lucians, that this current government has been downgraded from better days to bitter days. But the saddest part is that UWP will come along and do the same shate, whilst LPM still sits on the outskirts, blasting left and right.
    What a mess, but I still prefer our Westminster style democracy...just keep an eye on Kenny, he'd prefer a Zimbabwe style.

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  8. The rational by the Kenny Anthony administration to the recent down grade characterizing it as “NO CAUSE FOR CONCERN” is a simple explanation of the inability of this administration to understand in economic and financial terms what’s at stake.

    The administration is trying to taper the downgrade with the $130 million decrease in the budget- but this is absurd. The budget of 2011/12 was blotted and as such it underachieved. The fiscal consolidation that is required is absent to curtail the $140 million in interest payment and a $349million deficit.

    The difficult decision that has to be made is not present. The policy initiatives are absent and the strategies adopted by the Kenny Anthony administration are failing in order to restore St.Lucia’s future.

    I suggest that the Kenny Anthony get a serious education on the economic and fiscal situation that currently faces Saint Lucia because clearly, this latest statement explains everything.

    The Kenny Anthony administration is lost in LaLa –Land!!!

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    • Dear LPM. Can you tell me what you will then do to address this if you were in power at this time.

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      • Anyone can blogg in the name of the LPM,SLP or UWP. Unless I see it in official form I would not say that it is LPM that write this thing up there. Most political partys don't blog like that. They are more professional than that.

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  9. Hey Kenny

    Why don't we stop all the pretense. Things are not good and we must admit that. Saying you not suprise makes me think that you just trying to hide away from reality

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