Leacock says “you have to cut” and “contrive” as Friday heads to IMF for talks 

‘You can’t stabilise a country by going deeper into debt,’ Leacock says as Friday begins IMF talks

By Admin. Updated 1:40 p.m., Sunday, October 11, 2026, Atlantic Standard Time (GMT-4).

Deputy Prime Minister Major St Clair Leacock has defended the Government’s approach to repairing the country’s finances, arguing that Saint Vincent and the Grenadines cannot restore economic stability by taking on additional debt, as Prime Minister Dr Godwin Friday leads a delegation to this week’s International Monetary Fund (IMF) and World Bank Annual Meetings in Thailand.

The comments come as the Government seeks to reassure Vincentians that its engagement with international financial institutions forms part of a broader strategy to strengthen public finances, attract investment and support long-term economic growth.

Speaking on Keep’n it Real on Nice Radio on October 2, Leacock said the country must first acknowledge the scale of its economic challenges before meaningful reforms can take place.

“You can’t stabilise it by going deeper into debt,” Leacock said. “You have to cut, you have to contrive, and you have to put the productive agencies and people to work to do more with less.”

Leacock said the Government’s economic programme focuses on correcting structural weaknesses while expanding productive sectors rather than relying on increased borrowing.

He pointed to agriculture, renewable energy, the marine economy and new revenue-generating initiatives as areas expected to drive future growth, while indicating that additional measures would be reflected in the 2027 Budget.

The Deputy Prime Minister also defended the Government’s decision to engage with international financial institutions, saying countries such as St Vincent and the Grenadines cannot ignore organisations like the IMF and the World Bank.

“We are part of an international community,” Leacock said. “You can’t ignore your accountability to them and what they can do or not do that can make life difficult for your people as you’re trying to make the adjustment.”

His remarks precede Prime Minister Friday’s participation in the 2026 IMF and World Bank Annual Meetings in Bangkok from October 12 to 18.

According to the Prime Minister’s Office, Friday will hold bilateral discussions with senior IMF officials and representatives of the World Bank Group and the International Finance Corporation, while also attending the Caribbean Caucus, the Caribbean Ministerial Meeting and the Small States Forum.

The Government said the meetings are intended to advance discussions on fiscal management, development financing, investment opportunities and the economic vulnerabilities facing Small Island Developing States.

Officials also said the discussions will support the Government’s efforts to strengthen public finances, improve fiscal management and secure financing for national development priorities.

Friday is accompanied by Foreign Affairs Minister Dwight Fitzgerald Bramble, Ambassador Kevin Hope, Director General of Finance and Planning Edmond Jackson, Budget Director Kenrick Morris and members of his support staff.
The economic backdrop to the visit remains challenging.

Earlier this year, the IMF’s Article IV consultation urged St Vincent and the Grenadines to continue fiscal consolidation while safeguarding economic growth and strengthening resilience to external shocks. The country’s public debt and exposure to natural disasters remain central concerns in the IMF’s assessment.

Moody’s also downgraded the country’s sovereign credit rating in July, citing heightened default risk and continued fiscal pressures.
The country’s debt has become an increasingly contentious political issue.

The former Unity Labour Party administration has consistently argued that the sharp increase in borrowing was driven largely by repeated natural disasters, including the eruption of La Soufrière volcano and Hurricane Beryl, together with the COVID-19 pandemic and the investments required to protect lives and rebuild infrastructure.

The ruling New Democratic Party, which took office following the November 2025 general election, has instead blamed what it describes as years of poor fiscal management and excessive government spending under the previous administration.

However, the NDP Government has also faced criticism over some of its own spending decisions, including the payment of more than EC$20 million in salary bonuses to public workers, increased remuneration for some statutory office holders and expanded public assistance programmes.

Leacock rejected suggestions that the Government lacks a strategy, saying ministers are focused on disciplined spending and building what he described as “a new economy” capable of generating sustainable growth.

“But you cannot continue to run a country by running the country into unnecessary debt on which you have no means of getting yourself out,” he said.

END