IMF BOARD APPROVES AN ADDITIONAL EC$16.2M FOR GRENADA

St. George’s, June 09, 2009: The International Monetary Fund (IMF) Executive Board met on June 3rd 2009 and approved the completion of Grenada’s 3rd review under the Poverty Reduction and Growth Facility (PRGF) arrangement.

As a consequence, the IMF has released an additional EC$16.2 M for Grenada. These funds will be used to support the implementation of the 2009 Budget.

In a news release the IMF stated:

“Grenada has resolutely implemented its PRGF-supported economic program in the face of economic difficulties arising from the global economic downturn. Since the second half of 2008, tourism earnings, foreign direct investment, and remittances have declined, which has led to a marked fall in economic growth and a projected shortfall in government revenue in 2009. The authorities have strengthened policies in response—in particular, they have tightened fiscal policy since the second half of 2008. The IMF is providing additional financing to support the government’s adjustment efforts.”

Commenting on the recent decision by the IMF’s Board, Minister of Finance, Hon. V. Nazim Burke said:

“The Government welcomes the successful completion of the 3rd review and views this decision as an important validation of its commitment to stronger economic management. As indicated in the 2009 Budget, the Government, since assuming office, has placed a high priority on stronger economic management since this is the key to Grenada’s long term growth and prosperity.”

Grenada’s PRGF arrangement with the IMF was approved on April 17, 2006. The keys benefits of the arrangement are:
    European Union (EU) grants of approximately EC$50 million;
    Soft loans of approximately EC$62.0 million;
    Paris Club debt relief (rescheduling of EC$43 million); and
    Most importantly, enhanced creditability and confidence in Grenada’s economy and economic management thereby boosting the investment climate and the prospects for job creation.