IMF Executive Board Approves Three-Year US$84.5 Million Stand-By Arrangement with St. Kitts and Nevis

The Executive Board of the International Monetary Fund (IMF) has approved a three-year Stand-By Arrangement (SBA) for an amount equivalent to SDR 52.51 million (about US$84.5 million) with St. Kitts and Nevis. The arrangement will support the authorities’ economic program, coupled with a comprehensive debt restructuring, to restore debt and external sustainability and set the stage for sustained growth.

As a result of the Board’s decision, an amount equivalent to SDR 22.15 million (about US$35.6 million) is available for immediate disbursement. The three-year SBA arrangement represents 590 percent of St. Kitts and Nevis’ (SDR 8.9 million) IMF quota. St. Kitts and Nevis joined the Fund in August 1984.

Following the Executive Board’s discussion of St. Kitts and Nevis on July 27, 2011,
Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, made the following statement:

“The St. Kitts and Nevis economy is gradually recovering from a prolonged recession. However, fiscal imbalances and structural fragility's pose significant risks to the economic outlook.

“The authorities have started to implement an economic program to address these challenges over the medium term. The main objectives of this program are achieving higher growth and a sustainable fiscal position. The authorities’ plans include front-loaded fiscal consolidation, a comprehensive debt restructuring, and further steps to strengthen the financial sector.