Grenada Must 'Make Sacrifices' To Refinance Debt At A Lower Interest Rate

The Grenada government says the international community is willing to restructure the debt owed to it but insists that the island would have to make sacrifices, Caribbean 360 reported. “We expect significant reduction in our debt size and debt programme, we expect to see reduction through a haircut, we expect to see the debt move over a long period with a lower interest rate,” Prime Minister Dr. Keith Mitchell has said. Mitchell, who is also finance minister, has returned home following a visit to the United States where he held talks with officials from the International Monetary Fund (IMF) and the World Bank. He said that while the financial institutions were willing to assist Grenada it was also necessary for St. George’s to approve and implement a “home grown restructuring programme”. Mitchell, whose New National Party (NNP) came to office in February this year, said Grenada had been promised soft loans and grants which can put the island on a path of “sustain economic activity with ability to meet its challenges to the most vulnerable citizens”. Mitchell has soon after being sworn into office announced that Grenada was unable to pay its creditors and was seeking the assistance of the international community to restructure its debt. Since then there have been several activities aimed at finding a solution to restructuring the debt that is estimated at more than two billion EC dollars (One EC Dollar = US$0.37 cents). Read more.