The Saint Lucia Labour Party says it is dumbfounded by the economic analysis of Senator Ubaldus Raymond as it relates to the roll-over of debt, and overall debt management.
While the SLP accepts that the renewal or roll-over of debt is a practice used in public finance, it asserts that the country must always benefit from these actions. The explanations put forward by Senator Raymond are inconsistent, illogical, and require further clarification because the country will not benefit in the long run.
Senator Raymond is on record as stating that previous coupon payments for the servicing of a specific debt instrument were set at 4.5%, while the new rate negotiated by his Government shall be at 5.5%.
He goes on to state that this roll-over will not result in additional debt servicing costs to the Government. Such an assertion defies fundamental economic and financial logic.
The SLP urged Senator Raymond to rely more heavily on his technocrats in the Ministry of Finance before making pronouncements on matters of the economy, as his utterances thus far are inconsistent and not based on sound economic principles.
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