The Government of Saint Kitts and Nevis has forgiven an $11 million debt owed by LIAT.
Prime Minister Dr Timothy Harris said the debt was cancelled following a request by the liquidator.
During the monthly press conference hosted by the National Emergency Management Authority on Monday, he said the decision to forgive the airlines debt reaffirms the Federations commitment to regional integration and regional travel.
“We accept that LIAT is the largest carrier supporting intraregional travel and without LIAT there is a major void that has a significant impact on the ease of movement of citizens, residents, and visitors to the region,” PM Harris said.
Mindful of the challenges that LIAT has faced, the Prime Minister said the government believes its position is in the best interest of the people of St. Kitts and Nevis and the wider region.
LIAT returned to the air on a reduced commercial schedule on Monday.
In the initial phase, the airline will operate flights to and from the Robert L. Bradshaw International Airport in St. Kitts on Saturdays.