Washington, DC: IMF Deputy Managing Director Bo Li visited St. Kitts and Nevis from February 14-16, where he met Prime Minister Terrance Drew and held meetings with Governor Timothy Antoine, Chairman Camillo Gonsalves, and the members of the Eastern Caribbean Central Bank (ECCB) Monetary Council. At the conclusion of his trip, Mr. Bo Li issued the following statement:
"I would like to thank Prime Minister Terrance Drew and the members of the ECCB Monetary Council for their warm welcome and constructive discussions on the economic prospects of St. Kitts and Nevis. During our engagements, I welcomed the potential benefits of the country's large renewable energy resources and ongoing policy initiatives to build a sustainable and resilient island nation.
"The existential threat of climate change is acutely felt in the Caribbean. At the same time, the region has large renewable energy potential. The immense challenges and opportunities involved in climate adaptation and mitigation require a holistic set of climate policies, while ensuring that strong public finance and debt sustainability policies are in place.
"I want to underscore the strong progress that has been made by St. Kitts and Nevis on climate adaptation and building resilience. Let me also reiterate that the IMF is committed to supporting ECCU member countries, including through policy advice, capacity development, and lending through the Resilience and Sustainability Trust (RST).
"Adaptation investments and the green energy transition require affordable, sustainable, and significant financing. The Caribbean region can benefit from greater collaboration among multilateral development banks, international financial institutions, and bilateral donors to help crowd in private climate finance."
The Honourable Dr. Terrance Drew, Prime Minister of St. Kitts and Nevis and Chairman of the Organisation of Eastern Caribbean States (OECS) proudly embraced the opportunity to forge a deeper partnership with the IMF in advancing the collective developmental aspirations of the Federation of St. Kitts and Nevis and the OECS.
"The Government of St. Kitts and Nevis welcomes the opportunity to deepen our relationship with the IMF in advancing the development goals of the OECS through practical solutions to our current and emerging developmental challenges. We must emphasize the importance of regional collaboration. Pooling our resources and leveraging our combined population base can make investments more attractive to private sector entities. I extend my sincere appreciation to Director Bo Li for demonstrating such keen interest in our region and for committing to assisting us in tackling our challenges. Being at the forefront of discussions and practical proposals will enable us to craft practical solutions that yield tangible results."
The Chairman of the ECCB Monetary Council Honorable Camillo Gonsalves underscored the imperative to accelerate climate adaptation efforts and explore avenues to secure the financial resources needed. Chairman Gonsalves stated:
"I am pleased with the constructive and candid exchange of views during the Monetary Council's engagement with the IMF Deputy Managing Director, Mr. Bo Li. It is heartening to see the level of care and attention being accorded by the Fund to the affairs of the Currency Union in recent times. The Fund has been exhibiting an awareness of and sensitivity to some of the challenges that the smallest and most vulnerable in the Caribbean and the world face on our development journey. The developmental headwinds that the countries in the region face are well-known – chief among them being vulnerability. In understanding where we are developmentally and structurally, we first need to address the issue of our vulnerability.
"I believe there is more that can be done to address these challenges. We need to place the issue of climate finance and adaptation front and center. I thank Deputy Managing Director Li for his gracious offer to collaborate with the region on two points: (i) renewable energy - through support for the ECCB's Renewable Energy Infrastructure Investment Facility; and (ii) to use the Fund's convening power to help shine a light on adaptation finance. The adaptation challenges of the region are acute and cannot be financed through the paltry sums currently available. The Monetary Council is grateful for this engagement and looks forward to continuing our collaboration on climate finance."
