BASSETERRE: A groundbreaking bill to establish the Saint Kitts and Nevis Sovereign Wealth and Resilience Fund has been released for public review, offering citizens a financial safety net while building wealth for future generations.
The proposed legislation would channel up to 25% of profits from the Citizenship by Investment Unit, Geothermal Energy Authority, and Sustainable Island State Contributions into the new fund. The multi-purpose reserve aims to protect the Federation from natural disasters, economic shocks, and finance critical national infrastructure.
“The objectives of this Act are to facilitate secure sustainable sovereign investments for the benefit and enjoyment of future generations of citizens and residents of Saint Kitts and Nevis,” states the bill, which also promises to “ring-fence high quality liquid assets for rapid recovery from natural disasters without destabilising public finances.”
The fund will operate under strict governance, with an independent seven-member Board of Directors appointed by the Prime Minister, Premier, Leader of the Opposition, Minister of Finance, and Governor General. Board members must demonstrate “recognised integrity” and “proven competence in finance, investment, economics, business management or law,” while being barred from holding political office.
Withdrawals face rigorous restrictions. For natural disasters, the bill permits access only after a formal emergency declaration and damage assessment, capped at 30% of the fund balance. Economic crisis withdrawals require GDP contraction of at least 3% or revenue drops of 15% below projections.
The Eastern Caribbean Central Bank will serve as primary custodian, with investments limited to “gold bullion and foreign assets” to prevent domestic market distortions. The bill prohibits using fund assets as collateral or providing government guarantees.
Following international best practices under the Santiago Principles, the fund promises unprecedented transparency, requiring quarterly reports to Parliament and maintaining a public website displaying current investments and financial soundness data.