A new piece of legislation enacted by the Government of St Lucia is set to impose tighter controls and increase monitoring of fiscal policies. The Public Debt Management Act of 2023 seeks to strengthen the laws governing the nation’s debt while increasing transparency and accountability.
The act allows for the establishment of a Debt and Investment Management Unit within the Ministry of Finance to oversee matters relating to government borrowing. The unit, which will operate under the supervision of the Director of Finance, will also be responsible for establishing debt management objectives and developing a medium term debt management strategy. The unit will also be tasked with creating an annual borrowing plan and conducting a yearly public debt sustainability analysis.
The act also makes provisions for the appointment of a Public Debt Management Committee by the Minister of Finance. The primary functions of this entity will be the review of both the medium term strategy and the annual borrowing plan, as well as to provide guidance on terms and conditions for project related financing. The committee is also tasked with the regulation of government borrowing to meet the country’s fiscal requirements.
The Public Debt Management Act came into effect on April 1st 2024.
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