In March of 2013, the Government of Grenada announced its intention to undertake a comprehensive and collaborative debt restructuring exercise in order to reduce the drag on the economy on account of the high debt stock and debt service payments.
So far, debt restructuring agreements have been reached with Taiwan and the holders of Grenada’s 2025 Bond for a 50% haircut. Agreements have also been reached to reschedule outstanding debts to the United States of America, United Kingdom, France and Russia. Negotiations with remaining creditors are ongoing and should be completed shortly.
The completed agreements have already contributed to a reduction in public debt from 107.6% in 2013 to 94.3% at the end of 2015.
On 12 May 2016, the Government of Grenada achieved an important milestone by successfully making its first payment to bondholders in accordance to the terms and conditions of the restructuring. Payments to creditors on other completed restructured debts, including Taiwan and National Insurance Scheme (NIS) have already commenced.
In addition, Grenada continues to meet its obligations on a timely basis to its multilateral creditors — World Bank, Caribbean Development Bank (CDB), the International Monetary Fund (IMF), etc.
Ministry of Finance & Energy
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