Kingstown St. Vincent April 22 – The Leader of the Opposition has rejected the proposed National Development Bank bill, warning that it threatens to dismantle existing institutions that have already delivered results for Vincentians.
Speaking in Parliament, he cautioned, “Close down the student loan company. Close down the farmer’s support company. Close down Prime. Close down all of those entities which have brought so much good to this country and to the people.”
The Opposition Leader outlined a financial architecture built since 2001 without the need for a development bank. He cited the Student Loan Company, which has lent about $100 million to students, though with delinquency rates near 25%. He pointed to the Farmer’s Support Company, capitalized with $5 million in 2014, offering loans at 2% interest, and the PRYME program, which provides grants of up to $40,000. He also highlighted the housing mortgage initiative that expanded the housing stock from 30,000 in 2001 to 47,000 today, enabling public servants to own homes through “no‑down payment” mortgages.
He argued that these fit‑for‑purpose institutions already advance national development goals, including the UN Sustainable Development Goals signed onto in 2015. “Without establishing a National Development Bank, a number of fit‑for‑purpose institutions and public policies were created to take the advancement of the particular goals,” he said.
On financing, he warned that the new bank would be unsustainable unless it secured grants or concessional loans. “A bank without money is an oxymoron,” he declared. He cautioned that costly borrowing could push the country toward an IMF stabilization program.
The Opposition Leader also disputed claims that small and medium‑sized enterprises lack support, citing official data: “The number of employers has increased by over 300 during our time, and even a greater jump in self-employed persons.”
While acknowledging the objectives of job creation and sustainable development, he concluded that the resolution in its current form could not be supported. “Insofar as giving the National Development Bank the support here as what is presented, I regret that I’m unable to do so for the reasons that I have just outlined,” he told the House.
On April 21, Senator Chelsea Alexander introduced the motion to create a National Development Bank of St. Vincent and the Grenadines, a key campaign pledge of the New Democratic Party. The bank is designed to support four pillars of the economy: Agriculture, the Blue Economy, the New Economy, and Tourism. Alexander argued that small and medium-sized businesses have long been excluded from traditional credit systems. The new institution, she said, would provide financing to farmers, fisherfolk, creatives, and entrepreneurs, unlocking growth and creating jobs nationwide.