Dr Friday Says Taiwan Willing to Work With SVG on Debt 

By S.Browne. Updated 12:51 p.m., Wednesday, August 19, 2026, Atlantic Standard Time (GMT-4).

Prime Minister Dr Godwin Friday says Taiwan has shown a “genuine willingness” to work with St Vincent and the Grenadines to address its debt situation, following discussions during his Government’s recent official visit to Taipei.

Friday made the disclosure at a press conference on Tuesday, August 18, 2026, where he outlined the financial challenges facing the new administration and the discussions held with Taiwan, one of SVG’s major development partners.

The Prime Minister said SVG currently has a loan portfolio of approximately US$345 million with Taiwan, including committed loans, with most of the financing already drawn down.

He also said the country’s debt-to-GDP ratio exceeds 113 per cent, leaving Government with limited fiscal space.

Friday said the Government has been engaging the International Monetary Fund, World Bank, regional partners and other experts as it searches for ways to manage the country’s debt while maintaining social programmes and investing in productive sectors.

He said Taiwan was an important part of those discussions given the size of SVG’s existing financial obligations to the country.

“We have come to a point now as you know where we now have a loan portfolio of approximately 345 million US dollars that we have borrowed from Taiwan and committed loans,” Friday said.

“It’s necessary for us to engage with them as well to seek to find ways in which we can manage the debt better going forward.”

According to Friday, Taiwan responded positively to the Government’s concerns.
“To our great satisfaction and, you know, we were greeted with real interest in seeking to understand, genuine willingness of seeking to work with us to find ways in which we can resolve this,” he said.

However, Friday did not announce a specific debt restructuring arrangement or disclose the precise measures discussed with Taiwan.

Instead, he said the discussions remain ongoing and indicated that some measures have already been undertaken which he believes will assist SVG in the near term.

“A lot of this is still in discussion but I think that the goodwill is there and there are measures that have been performed which I think will very much help our situation in the near term,” he said.

Friday said the Government will have to determine which longer-term instruments or mechanisms are appropriate for managing the country’s debt.

“We have to decide how we use other instruments or other mechanisms in order to manage our debt situation,” he said.

The Prime Minister also made clear that his administration does not intend to respond to the country’s financial difficulties simply by taking on more borrowing.

“We could go to Taiwan and come back and say they got 125 million to borrow last time, we got 200 million,” Friday said. “But the problem is how are you going to repay it?”

Instead, he said Government is examining how to make better use of financing that has already been secured, including funds that have been committed but have not yet been drawn down.

“We are now looking to find ways in which we can utilise the investments that were made with the money that was borrowed to use those funds that are still not committed, that are not drawn down, as to see how we can utilise them most effectively,” Friday said.

He said the broader objective is to create fiscal space while protecting social programmes and generating capital for productive investment.

Friday also said his administration wants private-sector investment to play a greater role in economic development, reducing the need for Government to borrow to finance major projects.

While he did not disclose the specific measures he said could assist SVG in the short term, the Prime Minister indicated that further details would emerge as discussions continue.

“Our efforts are yielding fruit,” Friday said. “It’s a bit of a mixed metaphor here, but there is light at the end of the tunnel.”

“You will hear more about those as we go along, but I can promise you the news is good news,” he added.

The discussions come as the Government seeks to manage a high public debt burden while maintaining social programmes and creating room for investment and economic growth.

END