Grenada Plans to Restructure Debt

Grenada’s government will undertake a “comprehensive and collaborative restructuring of its public debt, it announced this weekend, the Caribbean Journal reported. The government said “circumstances have forced” the move, which will include its US and Eastern Caribbean-denominated bonds due in 2025. “The Grenadian economy has been severely affected by the global financial crisis and — despite a debt restructuring in 2005 and the reforms implemented over the last five years under IMF-supported programmes — has been unable fully to recover from the devastation wrought by hurricanes Ivan and Emily in 2004 and 2005, respectively,” the government said in a statement. Grenada’s economy grew by just 0.2 percent in 2012 under the former government of Prime Minister Tillman Thomas, according to data from the United Nations Economic Commission for Latin America and the Caribbean. It had been projected to grow by 1.2 percent in 2013. Grenada missed a coupon payment on its bond due in 2025 in September, eventually making the payment just before the expiry of its grace period by borrowing $4.4 million. Read more.