BASSETERRE, St. Kitts, The St. Kitts-Nevis government says it will begin on Thursday, making COVID-19 relief payments or dividends from the profits generated from the Citizenship by Investment Programme (CBI) that has been operating here for the past four decades.
Prime Minister Dr. Terrance Drew, in a national broadcast, said that the intention is to have all payments completed by December 31 this year.
Drew said that while the CBI, which allows foreign investors to make a significant investment in the socio-economic development of the twin island Federation in return for acquiring citizenship, “it is the first time that a Citizenship by Investment COVID-19 Relief Payment or Dividend from the profits generated from this program is being paid to the citizens and residents of St. Kitts and Nevis.
“In fact, it is the first time in the Caribbean that ordinary citizens and residents are being paid a dividend on any state asset,” he said, adding that this is a “significant gesture” by the government, recognizing that citizens and residents contribute greatly to the development of any asset here.
Prime Minister Drew said that while it is a fact that according to the normal company structure, dividends are paid only when there is a profit in a given operating year, however, hundreds of millions of the Citizenship by Investment funds were abused by the previous administration, hence the profit margin that could have been being significantly reduced.
“It is also a fact that normally no company distributes all of its profits in a given year in dividends. Some portion of that profit is always used for the general good of the shareholders collectively. “Hence, it is the model that was followed in determining how much the dividend would be. Portions of that profit have been allocated to the establishment of a Sovereign Wealth Fund. Portions of the profit are also assigned to capital investment for the general good of the people of St. Kitts and Nevis collectively.”
Prime Minister Drew said that EC$23 million (One EC dollar=US$0.37 cents) were allocated for the payment of the dividend and that there are two categories of payments.
“The EC$23 is a cash injection into the economy intending to stimulate growth and economic activity and to encourage our ordinary citizens and residents to become shareholders in private companies, understanding that it is also a form of savings.”
He said under the first category, Social Security pensioners and those who are pensionable in the Social Security scheme and would have made five hundred (500) contributions and upwards into the Social Security Fund will receive a EC$500.00 dividend.
The second category will cater to those persons who are not yet pensionable, “meaning, therefore, that their number of contributions would be from 499 contributions downwards”.
They will receive a dividend of $250.00.
“This decision includes persons who, because of the small number of contributions, were recommended not to receive a Citizenship by Investment COVID-19 Relief Payment (Dividend). However, it is my strong view and desires that this first dividend must include any person who has contributed to our Social Security Scheme,” Prime Minister Drew added.
He said in the future, like in all other entities where dividends are paid, how much and how it is paid will be determined by the prevailing circumstances.
“As we move forward, this St. Kitts-Nevis Labour Party Administration will evaluate all state assets and explore the possibility of dividends from such assets to the citizens and residents of St. Kitts and Nevis.”
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