Grenada: First Review Under the Extended Credit Facility Arrangement and Financing Assurances Review
IMF Staff Country Reports, December 30, 2014
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- Canonical URL
- Grenada: First Review Under the Extended Credit Facility Arrangement and Financing Assurances Review
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Bibliographic details
- Published: December 30, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498387897.002
Executive Summary
- Extended Credit Facility (ECF) Arrangement approved by the Executive Board on June 26th, 2014 for a three-year arrangement totaling SDR 14.04 million (about US$21.7 million, 120 percent of quota).
- The equivalent of SDR 2.04 million was disbursed upon approval of the arrangement.
- The equivalent of SDR 2 million (about US$3 million) will be made available upon Executive Board completion of the first review.
- The program is still in early stages, and implementation risks remain.
Recent Developments
- The economy is slowly recovering from a protracted recession, but domestic demand remains weak.
- Financial balance sheets are strained by non-performing loans.
- Private credit continues to contract.
- Inflation has been negative or low.
- Growth is expected to remain positive but below potential over the next two years, as private and public balance sheets are repaired.
- Discussions with creditors on a comprehensive restructuring of public debt have intensified.
Program Performance
- Policy implementation is off to a good start.
- Fiscal consolidation is proceeding as programmed.
- All quantitative performance criteria for the first review were met.
- Structural reform progress:
- Two structural benchmarks met or expected to be met.
- Two structural benchmarks to be finalized soon.
- Notable structural actions:
- Authorities overhauled the public financial management framework.
- An initial strategy was prepared to strengthen weak public institutions.
- The investment promotion framework is being modernized.
First Review Outcomes and Proposed Conditionality
- No substantive changes were made to the macroeconomic framework.
- Discussions focused on:
- The fiscal outlook for 2014-15.
- Structural reforms going forward.
- No changes are proposed to the programmed fiscal targets.
- Proposed new structural conditionality focuses on:
- Continued strengthening of the fiscal policy framework through implementing regulations.
- Debt management reforms.
- Revenue administration reforms.
- A framework for sustainable use of receipts under the new citizenship-by-investment program.
Content in this bundle
- _cr14363 — Executive Summary