The completion of the Review enables the disbursement of the equivalent of SDR 2 million (about US$2.9 million), bringing total resources made available to Grenada under the arrangement to the equivalent of SDR 12.04 million (about US$17.5 million).
The ECF arrangement in the amount equivalent to SDR 14.04 million (then about 120 percent of Grenada’s quota at the IMF) was approved by the Executive Board on June 26, 2014 (see Press Release No. 14/310). The Board’s decision on the fifth review was taken on a lapse of time basis.
The government met all performance criteria for end-June 2016 and most structural benchmarks for the Fifth Review.
The government made further progress restructuring public debt. Grenada’s debt-to-GDP ratio declined to 84.3 percent at end-June from 107 percent in 2013. Together with Grenada’s strengthened fiscal framework, including the Fiscal Responsibility Act, Public Debt Management Act, and Public Finance Management Act, the prospects for debt sustainability and durable growth are improving. Real GDP growth (at market prices) is projected to moderate to about 3.0 percent in 2016 and 2017, reflecting strong construction activity and steady external demand for Grenada’s tourism services.
Management of the public sector wage bill is a priority reform in the near term and the government continues to focus on strengthening the financial system to ensure stability and help it contribute more effectively to promoting private sector investment and growth. The government is also focusing efforts on programs to improve the quality of labor supply and the business environment to lower unemployment and encourage broad based growth.