St Kitts And Nevis Repaying IMF Loan Early
by Mike Godfrey, Lowtax.net, Washington
04 February, 2015
With its fiscal position improving faster than had been expected, Caribbean territory Saint Kitts and Nevis has made a third early repayment of a financial assistance loan received from the International Monetary Fund (IMF).
The territory borrowed about USD73.1m in 2011. The latest repayment covers obligations that were to fall due in the second half of 2015 and reduces the remaining obligation to around USD43.4m, projected to be repaid over the period 2015-2018.
The territory's deficit has fallen considerably since the onset of the financial crisis. In 2009, St Kitts and Nevis's public debt stood at 185 percent of gross domestic product (GDP) placing it among the world's most indebted territories relative to the size of its economy.
Following the implementation of a value-added tax, considerable tax reform, and debt restructuring, the territory's public debt-to-GDP ratio has now fallen to about 80 percent.
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