WASHINGTON, Jun 29 2015 – The Executive Board of the International Monetary Fund (IMF) Monday completed the second review of Grenada’s economic performance under a three-year programme supported by an arrangement under the Extended Credit Facility (ECF).
The completion of the review enables the disbursement of SDR 2 million (about US$2.8 million), bringing total disbursements under the arrangement to SDR 6.04 million (about US$8.5 million).
The ECF arrangement in the amount equivalent to SDR 14.04 million (then about US$21.7 million, or 120 percent of Grenada’s quota at the IMF) was approved by the Executive Board on June 26, 2014.
Following the Executive Board’s discussion on Grenada, Mr. Min Zhu, Deputy Managing Director and Acting Chair, said: “The Grenadian authorities have achieved important results in the context of their Fund-supported economic programme. Fiscal targets have been exceeded, important reforms of the fiscal policy framework have been put in place, and significant progress has been made in restructuring public debt. Stronger economic activity has supported programme implementation, although unemployment remains elevated. Maintaining social cohesion and support from all stakeholders remains critical to completing the reforms and putting Grenada on a higher, sustainable, and more inclusive growth path.
“Grenada is well advanced in its ambitious fiscal adjustment and in restoring debt sustainability. Safeguarding the fiscal performance achieved thus far and carefully monitoring budget execution will help achieve this year’s fiscal objectives. A final round of adjustment will be needed, as planned, to achieve the program’s fiscal targets for 2016. An agreement on debt relief with the remaining stakeholders will be necessary to return public debt to a sustainable level.”
