Taiwan Commits US$2M to SVG Development Bank 

By S.Browne. Updated 6:47 p.m., Tuesday, August 18, 2026, Atlantic Standard Time (GMT-4).

Taiwan has committed at least US$2 million in grant funding to help capitalise St Vincent and the Grenadines’ proposed National Development Bank, Prime Minister Dr Godwin Friday announced on Tuesday, August 18, 2026 during a press conference.

The commitment was among the outcomes Friday highlighted following his official visit to Taiwan, where discussions focused on strengthening the 45-year partnership and identifying practical ways to support SVG’s economic development.

“We can say there’s a commitment of at least two million US dollars as a grant to help to capitalise the bank,” Friday said.

He added that other assistance could become available, including funding on soft terms, but said the Government is still assessing whether additional borrowing would make financial sense.

The proposed development bank is intended to expand access to capital for Vincentians who are currently unable to secure adequate financing through the existing financial system, particularly small businesses and entrepreneurs.

Friday said Taiwan sees potential in the institution to provide capital to people who are currently “locked out of the system”.

However, he stressed that the bank will not be operated as a charity.

“It’s a bank, it’s not a charity,” the Prime Minister said.

He said the institution would operate on business principles while creating a more supportive environment for small businesses through financing, mentorship and other forms of assistance.

Friday said the success of the bank should ultimately be measured by its impact on the wider economy rather than simply by the financial returns it generates for the Government.

“The success of a development bank is not how much it pays to its shareholder, which will be the government, but how much business it generates in the economy overall, how many businesses are created and survive,” he said.

The Government is now working towards establishing the institution through legislation.

Friday said Attorney General Sarah Louise Mitchell has been working on the initiative, while Dr Jason Haynes has been tasked with drafting the bill.

He said the Government has also conducted public consultations on the proposed bank, including in Bequia, Union Island and North Leeward, as well as several consultations on mainland St Vincent.

The Prime Minister said the consultation process is intended to ensure the institution responds to the needs and concerns of Vincentians.

He also said the Government is taking into account concerns raised by the International Monetary Fund about the governance of a development bank and the risk of creating additional debt for the State.

Friday said Taiwan’s US$2 million commitment is a grant, while other potential assistance could involve borrowing on concessional or “soft” terms.

He said the Government is examining whether such financing would be worthwhile, particularly if the funds were subsequently lent to businesses.

“We are studying here with our team and we’ll decide how we go on,” Friday said.

The proposed bank comes as the Government seeks to increase productive activity while managing what Friday described as a difficult fiscal situation.

He said SVG’s debt-to-GDP ratio currently exceeds 113 per cent, making it important for the Government to carefully assess any additional borrowing.

Friday said the development bank is intended to help remove what he described as a bottleneck caused by limited access to capital.

The Government’s wider economic strategy, he explained, is to encourage more private-sector investment and create opportunities for people to earn sustainable incomes through productive activity.

The Prime Minister said the Government does not have the financial capacity to fund all major development projects itself and wants private capital to play a greater role in the economy.

The development bank is therefore expected to complement that approach by giving local entrepreneurs and small businesses greater access to financing and support.

Friday did not announce a date for the bank to begin operations, but said work on the legislation is progressing and that the Government is continuing discussions with Taiwan on assistance for the institution.

The US$2 million grant represents one of the clearest financial commitments Friday disclosed from his recent Taiwan visit and places the proposed development bank among the Government’s key initiatives for expanding access to capital and stimulating private-sector activity in SVG.

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