CASTRIES, St. Lucia, CMC – The St. Lucia government says the Citizenship by Investment Programme (CBI) contributed EC$45 million (One EC dollar=US$0.37 cents) in revenue to the Treasury during this fiscal year.
Prime Minister Phillip J Pierre, also the Minister of Finance, told Parliament Tuesday night that the CBI’s contribution was less than the approved estimates of EC$90 million for 2023/2024.
He said the difference between the approved estimates. He projected that the outturn “is due to an increase in demand for the real estate option rather than donations that go directly into the National Economic Fund or government bond options.”
Pierre, presenting the 2024-25 Estimates of Revenue and Expenditure, said the National Economic Fund received EC$64.1 million, of which EC$45 million was transferred directly into revenue.
“The balance is available for use according to the objectives of the Fund. In addition, EC$39.5 million was received from bonds but is included in bond financing this year.”
Pierre said that EC$17.4 million more was used this year to fund security, healthcare, social development, and infrastructure development.
“In reality, Mr. Speaker, the CBI contributed to the economy of St. Lucia EC$121 million in 2023/2024. Mr. Speaker, for 2024/2025, it is projected that the CBI will contribute directly to revenue EC$75 million,” Pierre said.
He told legislators that audited financial statements will be made available to Parliament as stipulated by LA and that during the police statement of the budget on April 23, he will provide a comprehensive explanation of the future of the CBI, raising speculation that St. Lucia may join Dominica, Grenada, Antigua and Barbuda and St. Kitts-Nevis that have signed a Memorandum of Agreement (MOA) to strengthen the program in their territories.
Under the CBI, foreign investors are granted citizenship in those countries in return for making a substantial investment in their socio-economic development.
Earlier this week, St. Kitts-Nevis Prime Minister Dr. Terrance Drew, who is also the chairman of the Organisation of Eastern Caribbean States (OECS) sub-regional grouping, said the accord seeks to assure the international community that these OECS member states will exchange best practices, due diligence processes, and intelligence related to potential security or compliance risks.
He said the MOA’s purpose is to provide a framework for cooperation and information sharing among the four OECS member states regarding their CBIs.
“The four small island developing states who signed this memorandum have committed to increase and harmonize the minimum investment threshold of their CBIs to an investment sum of at least US$200,000 no later than June 30, 2024, and more importantly, to bring an end to ‘underselling,’ a scourge on the CBI industry in the recent past.
“We have therefore agreed that the minimum investment thresholds for our CBIs shall represent the actual amount of funds received and applied towards an applicant’s qualification under our respective CBIs, and not the gross amount of funds paid by an applicant from which deductions, including the payment of commissions, are made.”
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