BRIDGETOWN, Barbados -- The board of directors of the Caribbean Development Bank (CDB) has approved a US$10 million policy-based loan to further build growth and resilience in the Grenadian economy. It is the final of three such loans from CDB to the government of Grenada, designed to support the country’s 36-month, home-grown structural adjustment programme.
“CDB commends the government of Grenada on its efforts to implement a comprehensive reform programme to restore fiscal and debt sustainability, build resilience and improve competitiveness. We are pleased to continue our support to Grenada as it works towards accelerating progress on poverty reduction through sustainable economic growth and job creation,” said Dr Justin Ram, director of economics, CDB.
The policy-based loan supports the government of Grenada’s ongoing implementation of policy and institutional reforms. It focuses on three main themes:
• Improving investment climate and competitiveness;
• Improving public resource management; and
• Enhancing resilience against natural disasters and key elements of resilience in the banking sector.
The loan supports reforms the government of Grenada implemented in the second half of 2015 and first half of 2016. These reforms build on the progress the country achieved under the first and second policy-based loans, which were approved in July 2014 and October 2015, respectively.
Several fiscal and structural reforms implemented since 2014, coupled with the restructuring of external commercial debt and domestic debt, have contributed to a marked improvement in Grenada’s economic and fiscal situation, relative to the 2011 to 2013 period. In 2015, the Grenadian economy grew 6.2 percent, making it the fastest growing of CDB’s 19 borrowing member countries.