CaribWorldNews, WASHINGTON, D.C., Tues. April 6, 2010: Grenada is the latest Caribbean island to turn to the International Monetary Fund.
The country recently secured a US$13 million loan from the institution to assist with its economic restructuring program. Approval of the program makes an initial disbursement of about US$1.9 million available immediately.
The IMF said the new loan is aimed at helping the Tillman Thomas government cushion the effects of the global financial crisis and supporting the country`s agenda of economic reforms aimed at boosting growth, reducing poverty, strengthening the private sector and the business climate, and reducing vulnerabilities in the financial sector.
`The global economic crisis has had a significant adverse impact on Grenada. Economic activity slowed, reflecting sharply weaker tourism receipts and FDI-financed construction, resulting in a deterioration of the fiscal situation. In addition, the collapse of the Trinidad and Tobago-based CL Financial Group has increased financial uncertainty and can have fiscal implications,` said Murilo Portugal, Deputy Managing Director and Acting Chair of the IMF`s Executive Board. `The authorities are continuing to focus on coping with the impact of the external shocks, while laying the foundation for fiscal consolidation and growth over the medium term. The new IMF arrangement under the Extended Credit Facility will support the authorities` efforts to continue with their economic reform program.`
Grenada is the third Caribbean nation to turn to the IMF amidst the glboal recession.