Taiwan Eximbank – SLDB with St Lucia government as guarantor expands housing financing – XCD 54M
Originally published by Caribbean News Global Read the original
By Caribbean News Global
Taiwan Eximbank XCD 54M financing facility
CASTRIES, St Lucia – The Taiwan Eximbank XCD 54 million (20M USD) financing facility with the Saint Lucia Development Bank (SLDB), and the Government of Saint Lucia (GOSL) as guarantor, in a historic agreement, “is expected to significantly expand the country’s housing finance capacity and help address ongoing supply constraints,” said the Office of the Prime Minister (OPM), pursuant to parliament approval on September 29, 2026, and is consistent with the legal framework governing revenue, expenditure, and fiscal management in the Public Finance Management Act of Saint Lucia.
Her Excellency Nicole Y.C. Su, the Taiwanese ambassador to Saint Lucia, said that this “Social Housing Loan Agreement, ” and “people-centered project like this, demonstrates our commitment to the improvement of the livelihoods of our peoples. A safe and affordable home is more than just a shelter. It is a haven of security conducive to healthy development of our children.”
Taiwan previously funded XCD 10 million National Housing Assistance Programme (NHAP).
In 2021, the government of Taiwan facilitated a soft commercial loan to finance the National Housing Assistance Programme, according to H.E. Peter Chia-Yen Chen, former Taiwan’s ambassador to Saint Lucia. However, with the increasing impacts of climate change in Saint Lucia, the demand has risen. The Taiwan government, therefore, addresses this urgency and necessity immediately and renders assistance to the people in need.
In 2024, Taiwan demonstrated a spirit of solidarity and shared commitment to improving the lives of Saint Lucians by funding two projects: the “Provision of Housing Repairs to the Less Fortunate” and “Sports Development.
Under Section 5(1) of the Act, the mandate of the Saint Lucia Development Bank (SLDB) is “to mobilise and provide finance for and promote and facilitate the expansion and strengthening of the economic development of Saint Lucia and foster the development of money and capital market in Saint Lucia and member states of the Organisation of Eastern Caribbean States.”
Housing is also attributed as a central focus of SLDB … “providing technical assistance to development enterprises; and such other things considered necessary in the pursuit of socio-economic and capital market development in Saint Lucia and the sub-region.”
In 2025, the SLDB approved about XCD 11.5 million in concessionary housing financing, part of a broader push to expand homeownership and support home improvements for lower- and middle-income households.
St Lucia’s largest investment in housing
Prime Minister Philip J. Pierre has emphasised that the Taiwan Eximbank – SLDB financing facility with the GOSL as guarantor “is the largest investment in housing in the history of this country.” He also added that this is “a major step towards expanding affordable financing, particularly for low- and middle-income families who have traditionally struggled to access conventional mortgages.”
The Prime Minister continued: “There is a housing deficit in this country, and that is [an] understatement. But there is also a deficit in affordable housing, and note the words that I use, ‘affordable housing, ‘ because there’s basically nothing as low-cost housing. There’s affordable housing … that people in the population who do not have the wherewithal or do not have the income to deal with traditional financial institutions have the ability to borrow. Once they have the will, once they have the discipline and once they have the commitment to pay back these loans.”
The Taiwan Eximbank – SLDB, with GOSL as guarantor, is an agreement built on a broad schedule of government housing initiatives. The emphasis is on affordable housing, serviced residential lots, homeownership financing, and climate-resilient construction. This is in addition to ongoing developments:
– The National Housing Corporation is constructing multi-family condominium-style residences at Talvern.
– The Rockhall Housing Project is expected to be completed within six months.
– A new housing estate is in the planning stages for Choc, Castries.
– A community master plan and environmental/social assessment are being developed for a pilot resilient, green and affordable housing project in Balata, Castries.
– A land rationalisation program between the ministry of housing and the ministry of physical development is releasing government land for residential development, complemented by the national site and service program.
– The National Housing Corporation’s mandate includes providing serviced residential lots, housing units and rental accommodation at affordable prices.
– The National Housing Assistance Program addresses basic housing deficiencies for low-income and indigent households.
– Invest St Lucia has partnered with a regional real estate developer on a 10-acre housing project in Belvedere, Canaries.
– Invest St Lucia is in discussions on a condominium-style development in La Fargue, Choiseul.
– Taiwan Eximbank – SLDB, XCD 54 million (20M USD) financing facility with GOSL guarantee is intended to help low- and middle-income Saint Lucians build or improve homes and finance new housing infrastructure.
Housing dreams
The government of Saint Lucia is attempting to make the financing environment easier irrespective of available housing location. Tax incentives, fees and approvals are related measures in the current marketplace appropriate to cushion housing availability, construction cost factors and financing.
· The government introduced a stamp-duty waiver on the first XCD 400,000, while certain eligible public servants can access 100 percent residential financing under the government-backed facility.
· Selected building materials—including cement, lumber and galvanise—have had VAT removed as part of measures intended to reduce construction costs. (A factor in construction cost and buyers’ financing burden).
· Tax and customs relief on water harvesting, storage and Solar PV.
The government of Saint Lucia is also actively working on a Climate Resilient Integrated National Land Use Plan. This could further influence land prices, construction costs, government incentives, financing and the best areas to develop residential developments and create opportunities in:
· Affordable residential development.
· Serviced-land development.
· Multi-family/apartment projects.
· First-time-homebuyer housing.
· Climate-resilient and energy-efficient homes.
· Housing infrastructure such as roads, drainage, water storage and solar systems.
· Private-public partnerships in housing development.
Buying a house, land, private or equity investment in housing development, or government affordable housing projects are active and underway in 2026.
[Babonneau; Beausejou, Gros Islet; Monchy, Gros Islet; Canelles, Micoud; Cas En Bas, Gros Islet; Carellie, Rock Hall, Talvern, Choc, Castries; Trouya, Gros Islet, Cap Estate, Vieux Fort; Belvedere, Canaries.]
St Lucia’s housing deficit
The government describes the national housing shortage at “over 12,000 homes.” There is also a separate projection that 5,000–7,000 additional households by 2030 is realistic, consequent to population decline.
Saint Lucia’s total fertility rate is 1.6 children per woman—falling below the standard replacement level of 2.1—which contributes directly to smaller family units and an ageing demographic, as reported by the ministry of health.
The economics of large-scale affordable/middle-income housing (acquiring land, standardised 1–, 2–, and 3–bedroom homes) show that affordable selling prices are at the threshold of XCD 400 K. The new government-backed housing facility is primarily mortgage financing to expand affordable housing infrastructure.
In furtherance of housing projects in Saint Lucia, building codes, land use and development regulations (area development/potential and cost), population density, construction cost, buyer financing and approvals necessitate serious consideration.
In terms of development acquisition, private-market and equity financing is under active consideration. However, this is contingent on location, access, serviced-land development (utilities, topography), development potential, construction and total development cost, inclusive of affordable future market value.
The 2022 Population and Housing Census (provisional data)
- Roughly 69% of households fully owned their dwellings (jointly or individually; female ownership around 25.5%).
- Only about 5.6% owned with a mortgage.
- Private rentals accounted for ~15.1%, rent-free ~7.5%, and smaller shares for government rentals, leasing, squatting, or other arrangements.
- Average household size fell from 2.8 (2010) to 2.6.
- Population reached ~172,948 (resident).
The 2022 Census counted:
o 171,834 people living in private households
o 65,951 private households;
o Average household size: 2.6 people;
o 77.2% of households in detached one-family houses;
o 17.1% in buildings with 2–4 apartments.
“In total, 65,951 households were recorded in the 2022 Population and Housing Census, compared to 58,891 households in May 2010. This represents an increase of 7,060 residential units, or 12 percent, over the intercensal period. Despite a modest total resident population increase of 3.9 percent, the average household size has decreased significantly, dropping from 2.8 per household in 2010 to 2.6 in 2022.” ~ 2022 Census.
Dyllan Tony Boulogne, in his article, “The housing deficit in Saint Lucia: An unmet need for affordable living,” said in October 2014:
“Saint Lucia’s housing crisis is driven by a combination of economic factors, cultural preferences, and inefficient development patterns. While the situation is challenging, there are clear opportunities for improvement. By focusing on affordable, higher-density housing, promoting innovation in construction and fostering public-private partnerships, we can close the housing gap and create more equitable opportunities for all residents. With thoughtful policies and investments, we can build a more sustainable and inclusive housing market for the future.”
Affordability and ownership
Cost of living, rising rent, wages and salaries, sustainable employment and financing affordability are challenges in the pursuit of homeownership. Financing constraints, infrastructure costs, proximity to employment and transportation, government processes, fees, and difficulty accessing mortgages compound affordability and ownership challenges in the current physical supply deficit.
According to Saint Lucia Policy Analysis: “A signed credit line can expand mortgage capacity, but financing is not the same as affordable housing supply or access.” Therefore, watch (what happens) next: “interest rate, maturity and drawdown terms; government guarantee scope and reporting; borrower eligibility; deposit and mortgage caps; effective monthly cost; expected household count; approvals and disbursements; arrears and restructurings; additional housing supply; and price-to-income outcomes.”
The housing deficit is attributed to insufficient affordable supply of mixed housing to meet market demand, and limited access to mortgage financing. At the same time, issues with mixed-use properties at true affordability levels are currently constrained.
Future development models will need to address the gap in deteriorated houses, households in unsuitable locations, second homes, vacation properties, migration and families that have the income but cannot obtain financing.
The GOSL housing priority (the largest dedicated financing commitment to date with the support of Taiwan), aimed at low- and middle-income households, alongside private sector development, is fundamental to effective public policy and to solving a systemic housing deficit of townhouses, duplexes and small apartment buildings.
The average household size is recorded at 2.6 people and is declining steadily. The age dependency ratio has declined from 48.6 in 2010 to 44.5 (in 2022), indicating reduced pressure on the working-age population. The total resident population (in 2022) was 172,948. The growth rate declined from 5 to 3.9 percent.
A national development ethos
The supply of affordable, financeable, appropriately sized homes (approx 1,000 – 1,800 sq. ft.) is imperative to support unmet demand for new housing development in Saint Lucia.
Critical to these are targeted locations in proximity to employment, transportation and services. The serenity of personalised and traditional-style living awaits a bold vision (not baby steps). Further, the artful transformation and actual affordability (selling price) await, encapsulating both practicality and versatility in a cosy embrace.
The endless possibilities lie in speed and accuracy, focused on housing development within a one-window environment (single point of contact) capable of fast-tracking approvals, permits, financing, construction, etc.
These, among others, require integrated rethinking that is framed in a national development ethos.
The actuality of 7, 000 – 12,000 new housing units by 2030/2035, comprising 1–, 2–, and 3–bedroom homes in a mixed housing stock, and distributed within the quotient of XCD 400K, presents a persuasive opportunity in the formulation and supply of affordable, financeable housing equity investments and private developments that parallels social and economic standings.
