KINGSTOWN, St. Vincent- The International Monetary Fund (IMF) has warned that a Citizenship-by-Investment (CBI) program, which the government of St. Vincent and the Grenadines (SVG) has said it is considering, could generate only modest fiscal revenue while exposing the country to reputational, legal, and financial risks.
At the conclusion of its 2026 Article IV mission, IMF staff said that while a CBI scheme might provide some additional income, competition among countries offering similar programs would likely limit SVG’s gains. The Fund stressed that any such initiative must be designed with strict adherence to regional standards and best practices in due diligence, integrity, and transparency.
“A CBI program would likely result in limited fiscal revenue amid competition, but would carry reputational, legal, financial, and fiscal risks,” IMF staff noted.
“Adherence to regional standards and best practices in due diligence, integrity, and transparency would help reduce but not eliminate these risks.”
The IMF advised that if SVG proceeds, the program should be limited to a single donation (fund) option, with investment or real estate routes “strongly discouraged.”
Revenue from the program, the Fund said, should be earmarked exclusively for debt reduction, not for recurrent spending or capital projects.
“The optimal design of the program is a single donation option, while an investment or real estate route is strongly discouraged,” the IMF stated.
“CBI revenue should be used solely for debt reduction. The budget, medium-term fiscal framework, and fiscal rule need to be formulated net of CBI revenue.”
Prime Minister Godwin Friday’s administration has previously indicated that it would look into the feasibility of a CBI program as part of its broader fiscal strategy. The IMF’s caution now places the government at a crossroads: balancing the potential for new revenue streams against the reputational and financial risks highlighted by the Fund.