Kingstown St. Vincent May 07, 2026 – Prime Minister Godwin Friday says the planned National Development Bank (NDB) will be run on sound business principles, not political loyalty.
Speaking on NBC Radio, Dr Friday dismissed concerns that loans could be issued based on party affiliation rather than viable business plans.
“It’s not just a matter of coming and showing a party card and say, ‘listen, I come to collect’,” he said.
The Prime Minister stressed that rigorous lending standards would be applied, particularly to support small businesses often overlooked by commercial banks.
“For it to survive, for it to achieve its objective, it has to function on set principles that everybody understands,” he added.
The IMF has repeatedly warned Caribbean governments about the risks of poorly managed development banks. In its 2026 Article IV mission statement, the Fund advised against establishing a new bank in St Vincent, citing “high fiscal risks and regional experience” with weak performance in similar institutions.
Dr Friday, who campaigned on the NDB as a central plank of his New Democratic Party’s platform, argues the institution is essential to reversing economic stagnation.
“If we continue the way we are, it could get to as high or higher than 145% in the next five years. That’s unacceptable,” he
He maintains that economic growth, not austerity, is the quickest path out of the debt crisis. The government says the bank will expand access to financing, create jobs, and empower local entrepreneurs.
St Vincent previously experimented with a development bank in the 1970s- 80s, which was later absorbed into the National Commercial Bank. Critics have described that project as “stillborn,” but Dr Friday insists the new institution will be different.