{
  "title": "Press Release: IMF Executive Board Approves US$4.4 million in Emergency Assistance for Grenada",
  "publication": "IMF News, November 16, 2004",
  "sourceUrl": "https://www.imf.org/en/news/articles/2015/09/14/01/49/pr04240",
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  "summary": "The Executive Board of the International Monetary Fund (IMF) approved SDR 2.93 million about (US$4.4 million) in emergency assistance for Grenada.",
  "publishDate": "2004-11-16",
  "sections": [
    {
      "heading": "Approval and emergency assistance",
      "content": "- The Executive Board of the International Monetary Fund (IMF) approved SDR 2.93 million about (US$4.4 million) in emergency assistance for Grenada.\n- The amount approved is available immediately to help the government deal with the devastating effects of Hurricane Ivan, which passed directly over Grenada in September."
    },
    {
      "heading": "Damage assessment and economic projections",
      "content": "- The damage caused by Hurricane Ivan is estimated at over 200 percent of GDP.\n- Tourism and agriculture, the two major sources of foreign exchange earnings, have been hit hard.\n- The economy is projected to contract by over 3 percent in 2004, compared to a pre-hurricane projection of 4 percent growth."
    },
    {
      "heading": "Financing gaps and international response",
      "content": "- With its tax base and sources of foreign exchange earnings impaired, Grenada faces large financing gaps for 2004-05.\n- These gaps will need to be filled, in part, through support from the international community.\n- A donors' conference was held in Washington, D.C., on October 4, 2004, and a follow-up pledging session is scheduled for November 19 in Grenada."
    },
    {
      "heading": "Terms of the IMF emergency loan and prior assistance",
      "content": "- The emergency loan currently carries a charge of 3.4 percent.\n- Repayment terms: repaid in eight equal quarterly installments over 3.25 to 5 years from the disbursement date.\n- Prior instance: In January 2003, emergency assistance had been approved to help Grenada deal with the effects of tropical storm Lili (see Press Release No. 03/10)."
    },
    {
      "heading": "IMF assessment and recommended medium-term policy framework (Agustín Carstens, Deputy Managing Director and Acting Chair)",
      "content": "- Expressions of sympathy and acknowledgement:\n  - \"The IMF extends its deepest sympathy to the people of Grenada at this difficult time following the devastation of Hurricane Ivan.\"\n  - The government, with international support, \"is responding swiftly to the situation.\"\n  - Authorities have \"redirected budget allocations to the pressing needs of rehabilitation and reconstruction.\"\n  - An independent agency to coordinate the reconstruction effort and a reconstruction fund \"would be subject to independent audits.\"\n- Fiscal and growth challenges:\n  - \"The hurricane has set back the government's efforts to address fiscal imbalances.\"\n  - Prior to the hurricane, Grenada had been making progress through \"a comprehensive review of tax policies and a medium-term fiscal strategy to bring debt down to more manageable levels.\"\n  - With the tax base and foreign exchange earnings impaired, Grenada \"now faces larger fiscal and balance of payments financing gaps.\"\n- Need for comprehensive strategy and international support:\n  - External support, including IMF emergency assistance, \"will help with the near-term situation.\"\n  - A comprehensive strategy is needed \"to ensure the success of the reconstruction efforts and spur economic growth.\"\n  - Authorities intend to develop a medium-term policy framework aimed at \"restoring fiscal and debt sustainability and promoting structural reforms to enhance growth prospects in Grenada.\"\n- Specific policy measures outlined by the authorities:\n  - Re-introduction of a value added tax.\n  - Strengthening of the customs department.\n  - Reduction of government guarantees.\n  - Rationalization of the tax incentive regime.\n  - Reform of the public service to improve efficiency.\n  - Rationalise and re-prioritise public expenditure.\n- Concluding assessment:\n  - \"The authorities' firm resolve to implement a comprehensive medium-term economic strategy, together with the continued support from the international community, should help Grenada's economy to rebound,\" Mr. Carstens said.\n\nPress Release No. 04/240, November 16, 2004. International Monetary Fund.\n\n---\n\n\n References\n\n- Grenada and the IMF\n- Press Releases\n- PRESS CENTER\n- see Press Release No. 03/10\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr04240"
    }
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    "Published: November 16, 2004",
    "The Executive Board of the International Monetary Fund (IMF) approved SDR 2.93 million about (US$4.4 million) in emergency assistance for Grenada.",
    "The amount approved is available immediately to help the government deal with the devastating effects of Hurricane Ivan, which passed directly over Grenada in September.",
    "The damage caused by Hurricane Ivan is estimated at over 200 percent of GDP.",
    "Tourism and agriculture, the two major sources of foreign exchange earnings, have been hit hard.",
    "The economy is projected to contract by over 3 percent in 2004, compared to a pre-hurricane projection of 4 percent growth.",
    "With its tax base and sources of foreign exchange earnings impaired, Grenada faces large financing gaps for 2004-05.",
    "These gaps will need to be filled, in part, through support from the international community.",
    "A donors' conference was held in Washington, D.C., on October 4, 2004, and a follow-up pledging session is scheduled for November 19 in Grenada.",
    "The emergency loan currently carries a charge of 3.4 percent.",
    "Repayment terms: repaid in eight equal quarterly installments over 3.25 to 5 years from the disbursement date.",
    "Prior instance: In January 2003, emergency assistance had been approved to help Grenada deal with the effects of tropical storm Lili (see Press Release No. 03/10).",
    "Expressions of sympathy and acknowledgement:",
    "Fiscal and growth challenges:",
    "Need for comprehensive strategy and international support:",
    "Specific policy measures outlined by the authorities:",
    "Concluding assessment:",
    "[Grenada and the IMF](http://www.imf.org/external/country/GRD/index.htm)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[see Press Release No. 03/10](https://www.imf.org/external/np/sec/pr/2003/pr0310.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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