St Kitts and Nevis debt restructuring exercise could lead to job losses

Nevis premier Joseph Parry has warned his people that there will be job losses under the debt restructuring exercise announced by recently by the federation.

CHARLESTOW, Nevis, Thursday, March 15, 2012 - As the Nevis Island Administration (NIA) carries out the debt restructuring exercise announced recently by prime minister of the federation Dr Denzil Douglas, the reorganisation of government departments and statutory bodies will increase unemployment.

This was acknowledged by Nevis premier Joseph Parry during his weekly radio programme In Touch with the Premier" aired on Tuesday.

At the end of last month Dr Douglas announced that St Kitts and Nevis would be undertaking a two-pronged debt relief strategy aimed at further stabilizing the economy.

Further to the economic and debt restructuring programme, which was commenced in late 2010, Prime Minister Douglas has announced that the state will now embark on a debt exchange programme, along with debt relief provided by a number of government's creditors, plus ongoing economic reforms, to help place the country's public finances on a more sustainable footing.

Parry, who is also the Nevis Minister of Finance, said the reorganisation would lead to workers being laid off, but said a pension scheme would be put in place to act as a safety net for non-establishment workers with more than 10 years service.

"The debt restructuring is something that we have taken ourselves in this country," Joseph said.

"The International Monetary Fund (IMF) has approved the path which we wish to take, and we have the White Oak people who are helping us to restructure the debt.

Basically part of the idea is that we would have to discipline ourselves and organise ourselves, and take certain measures locally to cut down costs, to pull back on expenditure and also to stimulate growth, he said. Click here to receive free news bulletins via email from Caribbean360. (View sample)