ST. GEORGE’S, Grenada, Friday November 27, 2015 – Grenada will benefit from an additional US$2.7 million disbursement from the International Monetary Fund (IMF) following the institution’s third review of the island’s economic performance under an Extended Credit Facility (ECF) programme.
The IMF said the decision was taken after the country met all performance criteria for end-June 2015 and all structural benchmarks for the third review were implemented.
“Half-way into the authorities’ three-year reform programme, fiscal sustainability and growth prospects are gradually improving. The authorities are on track to achieve the first primary surplus in a decade,” it said.
“Supported by the recent private debt exchange, the debt-to-GDP ratio is projected to decline to 90 per cent at end 2015, down from 107 per cent in 2013. Economic growth is projected to remain robust at about 3.5 per cent (at market prices) in 2015, reflecting expanding agriculture output and solid external demand for Grenada’s tourism services.”
The Fund stressed that continued implementation of the structural reform agenda is critical to improve Grenada’s long term fiscal prudence and growth prospects.
Reform of the public sector during the remainder of the programme would also be essential, it added, to safeguard the fiscal adjustment gains attained thus far and ensure a sustainable reduction in the government’s personnel expenditure.
The IMF said going forward, attention on growth and competitiveness reforms will help solidify the success of structural reforms so far and contribute to boost employment.
The latest disbursement brings the total made available to Grenada under the arrangement to US$11 million.