Douglas challenges PM Harris to release IMF report, reverse Land for Debt Swap

In a response to St Kitts and Nevis Prime Minister Dr Timothy Harris' press conference on Tuesday, July 2, 2019, former Prime Minister and Minister of Finance and current Leader of the Opposition, the Rt Hon Dr Denzil L Douglas said in a statement Wednesday that the Press Unit in the Office Dr Harris must do their research by going back to the Budget addresses and speeches delivered at the National Consultations on the Economy over the period 2010 to 2014.

"Would the country believe that the leader of the Team Unity Regime – Timothy Harris, is taking credit for bringing our debt to GDP ratio in line with the 60% international bench mark? asked, Dr Douglas.

In a statement, Dr Douglas noted that during the campaign leading up to the general elections of 2010 the National Debt became a potential football for the then opposition.

"I told the country then that the Labour Administration under my leadership will deal with the National Debt once and for all, including legislation to ensure that the debt stays within a certain limit," Dr Douglas said.

He pointed out that the Appropriation (2003) Act, 2002 properly documented the seriously damage inflicted on the economy by five hurricanes between 1995 and 2000.

"It was during that same period that we lost access to concessionary funding as we were graduated by the World Bank. Add to that, we lost preferential treatment for our sugar export, so that industry under the then Minister (of Agriculture) Timothy Harris, accumulated massive debt. The situation was compounded and then there was the financial crisis that Small Developing States had to endure. During those difficult times we still had to provide our people with a decent standard of living which we did. So yes, the country’s debt to GDP increased of which Timothy Harris was an active participant," Dr Douglas added.

"My Administration was able to achieve success in bringing the National Debt down, firstly due to respect that existed between the minister of finance and the technocrats of the Ministry of Finance under able and capable Financial Secretaries with whom I work. One of which the World Bank requested secondment. My (Labour Party) Administration gained the respect and cooperation and confidence of our Bond Holders and Creditors, because my word meant something to them," said Dr Douglas, who further noted that a critical component of the success of the home-grown debt reduction strategy was the Land for Debt Swap which the Timothy Harris Regime promised to reverse.

"With all the mouth and man he think he is, let him reverse the Land for Debt Swap," said Dr Douglas.

He said the Labour Administration that he led was always open, transparent and cooperative with its local, regional and international partners.

"It will do the country good, if Timothy Harris will release the last Article IV Consultation Report completed by a visiting IMF Mission headed by Dr Arnold Mc Intyre.

"We do not accept nor believe anything that Harris says regarding the present state of the country’s finances as his word cannot be trusted," said Dr Douglas.

"I am not surprised that Harris would want to lay claim to the reduction of the National Debt for honestly what can he lay claim to after four years. The truth be told he was never a strategic thinker. Investors complain to me that he turns them off because of his classless behavior," Dr Douglas said.

"I am proud of my record and place on record my gratitude and thanks to all those hard working conscious Public Servants, Cabinet Colleagues, the international institutions, friendly governments and our financial consultants – White Oak - in what was a very serious exercise. Once the Land for Debt Swap Agreement was complete as it was very critical to the exercise, I was able in addressing the 2013 National Consultation on the Economy on Thursday 17th October 2013, to inform the audience that we were well on target in bringing our debt to international standard, with the Land for Debt Swap in 2013 the debt was about 100% of GDP. I indicated that by 2014/2015 the debt ratio will be further reduce to 89% of GDP and will reach to 60% of GDP threshold way before 2020.,"

Dr Douglas said, adding: "The Team Unity Regime has done nothing to impact the debt to GDP ratio. All they can be credited with was to make a balloon payment to the IMF from funds which my Administration left in the Treasury."

Dr Douglas said St Kitts and Nevis achieved the important debt to GDP of 60% way before 2020 "because of a capable and competent leader and prudent who respected the policy advice of his technicians in the Ministry of Finance as well as those from the World Bank, International Monetary Fund, the Caribbean Development Bank and the Eastern Caribbean Central Bank."