|Grenada ratings downgrade confirms economic mismanagement, says former minister|
|Published on October 13, 2012||
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By Caribbean News Now contributor
ST GEORGE’S, Grenada -- The recent ratings downgrade by Standard and Poor's is further confirmation of the mismanagement of Grenada’s economy under the failed policies of the National Democratic Congress (NDC) administration, said former minister Anthony Boatswain.
“The downgrade will further weaken whatever little investor confidence there is in an administration whose tenure has been marked by low growth and high debt. The prospects for any action in the local economy, already extremely dim before this latest report, has been dampened even further,” he said.
Recently, the opposition New National Party outlined a 10-point agenda to help kick start the economy. However, crucially none of this can happen in an absence of confidence. Indeed, confidence is the fuel that drives any economic revival, Boatswain said.
“It is now clear that Grenada's economic revival will only begin when the architects of this failed policy are removed from office. Prime Minister Tillman Thomas and Finance Minister Nazim Burke have presided over a failed economic policy, which has increased poverty throughout the island, and engineered a sense of debilitating hopelessness.
“The pain and suffering are being prolonged even further by their refusal to call parliament to allow for debate on the economic direction of the country, as Grenada continues to suffer on their short-term selfish political agenda.
“We again call on the administration to urgently reconvene parliament to allow for a debate on the state of the economy. But even further, we call on the prime minister, who no longer has the support of the majority of parliamentarians, and indeed the people of Grenada, to allow for the nation to collectively decide its destiny.
“Grenada cannot continue to be short-changed and held ransom while Prime Minister Thomas and Finance Minister Nazim Burke seek to settle political scores” he said.
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Gerry Hopkin, J.D.:
Unfortunately for the author of the above article, but fortunately for the forward-looking people of Grenada, the doom and gloom of the above story are apart from reality.
The article below clarifies the status of Grenada's economy, with regards to the delayed payment of a debt obligation which was mis-characterized as a default. This article also tells the truth about a positive indicator of economic wellbeing in terms of impact on Grenada's economy.
MINISTRY OF FINANCE, PLANNING, ECONOMY, ENERGY & COOPERATIVES
Website: www.gov.gd Phone: 1-473-435-0057
NO. 69/2012 DATE: October 12, 2012
GRENADA TREASURY BILLS ON THE RGSM OVERSUBSCRIBED
ST. GEORGE’S, GRENADA Friday, October 12, 2012: The Government of Grenada wishes to advise that its most recent Treasury Bill Issue of EC$12.0 million of the Regional Government Securities Market (RGSM) has been oversubscribed by EC$0.4 million. The total bids amounted to EC$12.4 million at a final rate of 6%. Grenada will again approach the RGSM on October 17, 2012 with an EC$15.0 million 91-Day Treasury Bill Issue with a maximum bid price of 6%.
The Government of Grenada takes this opportunity to sincerely thank all of its local, regional and international investors for their confidence in the last Auction and look forward to their continued support in the upcoming T-Bill Issue.
Also, the Government would like to advise that today, October 12, 2012, within the 30 day grace period, it has completed payment of the semi-annual September coupon of its US dollar 2025 Bond through its Paying Agent, BNY Mellon.
The Government wishes to reiterate its commitment to continue to meet all of its obligations as and when they fall due on the RGSM.
Petra Charles - Joseph
Corporate Communications Officer
Ministry of Finance, Planning, Economy, Energy & Cooperatives
The Carenage, St. George's
Tel: (473) 435-0057; 440-2731/4 ext 1108
Fax: (473) 440-4115
Gerry Hopkin, JD:
The Release below informs that GRENADA did make its payment on time and is not in default:
ST. GEORGE’S, GRENADA Friday, October 12, 2012: The Government of Grenada advised noteholders today that it has completed payment of the semi-annual September coupon of its US Dollar 2025 Bond through its Paying Agent. Having made this payment within the grace period, Grenada has not defaulted on the 2025 Bond.
On September 12, 2012, the Government of Grenada issued a Notice to Noteholders of its US Dollar 2025 Bond through its Paying Agent, BNY Mellon. The Notice indicated that Government was experiencing liquidity constraints but would make every effort to pay the coupon by October 15, 2015, the final day of the grace period for the payment of the September coupon on the 2025 Bond. Despite the difficult circumstances, efforts to secure the necessary funding were successful.
Grenada is a small country dealing with the effects of the challenges experienced by the global economy including lower growth, lower tourism ... and lower foreign direct investment. Nonetheless, it continues to make every effort to meet its obligations. Furthermore, the Government of Grenada continues to implement an ambitious agenda of reforms including improvement in the business and investment climate. Indeed, Grenada was recognized as one of the top ten reformers worldwide by the International Finance Corporation in its 2011 Ease of Doing Business Report. Moreover, Government has articulated a vision for transforming the Grenadian economy through new drivers of growth including Health, Wellness and Education Services, Energy and ICT.