The Grenadian government hopes by May to have a deal in place with the International Monetary Fund to obtain $21.9 million in financing to bolster a struggling economy, the country’s prime minister said last week.
The lending institution has agreed in principle to a deal that would loan Grenada the funds from the IMF’s Extended Credit Facility over the next three years.
With the money, the island can help address its chronic budget deficits and return to growth, Dr. Keith Mitchell, Grenada’s prime minister, said, according to the Caribbean Media Corporation.
“From all indications now it looks like we will be up and running sometime early in May, which is an excellent thing for the country as a whole because given the fact that we know people are hurting in every respect we want to start delivering on some of the programmes as early as possible,” Dr. Mitchell said.
With the IMF loans in place and an economic recovery under way, the Grenadian government could then secure up to $100 million in loans and grants from other regional and international institutions, Dr. Mitchell has said.
Last year, Grenada was one of three members of the Eastern Caribbean Currency Union to default on their loans. After failing to reach a deal with creditors in March last year, Grenada was unable to make payments on $193 million in long-term debt and saw its credit rating downgraded.
“The global financial crisis has taken a heavy toll on the country and aggravated the severe debt overhang that continues to weigh down our economy,” Dr. Mitchell said at the time. “It is now time for Grenada to confront the fact that it cannot continue to pay its debts on current terms.”
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