Grenada struggles with piecemeal approach to debt reduction

Grenada has reached a deal with private bondholders to reduce debt owed to them by up-to half over the next two years, dependent on the country completing a programme with the International Monetary Fund. Along with an agreement to cut in half the country’s debt to Taiwan, Grenada’s foreign debt will fall from around $670 million to $520 million, as much of it is actually owed to public institutions such as the Caribbean Development Bank. Furthermore, the deal with the bondholders will mean Grenada’s debt payments will increase, as it has been in default to the private sector since 2013.

A substantial amount of Grenada’s debt is owed to multilateral institutions such as the Caribbean Development Bank, World Bank and International Monetary Fund. There is also debt owed to the UK ($3 million) and a few other western countries, which have so far refused to cancel the debt.

Full post from Jubilee Debt Campaign available here 

Housing in St George’s, Grenada, opposite the national cricket ground

Spread the word...