{
  "title": "IMF Executive Board Completes Final Review Under the Extended Credit Facility Arrangement for Grenada",
  "publication": "IMF News, May 18, 2017",
  "sourceUrl": "https://www.imf.org/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada",
  "canonical": "https://www.imf.org/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada",
  "overlayPath": "/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada/index.md",
  "summary": "Sources: Ministry of Finance; Eastern Caribbean Central Bank; and Fund staff estimates and projections.",
  "publishDate": "2017-05-18",
  "sections": [
    {
      "heading": "Program completion and disbursement",
      "content": "- The Executive Board completed the sixth and final review of Grenada’s performance under a three-year arrangement under the Extended Credit Facility (ECF).\n- Completion of the review enables disbursement of the equivalent of SDR 2 million (about US$2.8 million), bringing total resources made available to Grenada to the equivalent of SDR 14.04 million (about US$19.4 million).\n- The ECF arrangement was approved by the Executive Board on June 26, 2014."
    },
    {
      "heading": "Program outcomes and macroeconomic performance",
      "content": "- The government met all continuous and end-December 2016 performance criteria and structural benchmarks.\n- The economy grew by about 3.9 percent in 2016, reflecting continued strong construction activity and steady external demand for Grenada’s tourism services.\n- The pace of restructuring of public debt accelerated in recent months.\n- Grenada’s debt-to-GDP ratio declined to 83.4 percent at end-2016 from 108 percent in 2013.\n- The program’s core objectives achieved: restoring fiscal sustainability, strengthening the financial sector, and setting the stage for sustainable growth."
    },
    {
      "heading": "Structural and institutional reforms",
      "content": "- Authorities passed: the Fiscal Responsibility Act, the Public Debt Management Act, and the Public Finance Management Act.\n- The government raised total social spending under the program and improved targeting of social transfers.\n- Grenada’s banking sector has strengthened and financial stability has improved."
    },
    {
      "heading": "Risks and remaining challenges",
      "content": "- Grenada remains a small open economy susceptible to external shocks, including natural disasters and swings in tourism demand and commodity prices.\n- Public debt is still relatively high; authorities need to continue efforts to reach medium-term debt targets, lower unemployment, raise productivity, and broaden the base of growth.\n- Important remaining tasks include regularizing all outstanding arrears and concluding discussions with remaining creditors as soon as possible.\n- Continued efforts are needed to strengthen regulation and supervision of the non-bank financial sector."
    },
    {
      "heading": "Policy recommendations (from Mr. David Lipton)",
      "content": "- Adhere to the strengthened, rules-based fiscal policy framework to meet medium-term debt targets and build up reserve buffers.\n- Advance structural reforms that promote broad-based growth and lower unemployment.\n- Implement legislation passed during the program and follow through on accountability systems accompanying the fiscal framework.\n- Remove impediments to private sector activity, advance institution-specific reforms to state-owned enterprises, and revitalize the agriculture sector.\n- Strengthen labor market skills and mobility and implement public service management reform.\n- Strengthen regulation and supervision of the non-bank financial sector so the financial system contributes more effectively to private sector growth."
    },
    {
      "heading": "Selected economic and financial indicators (as reported)",
      "content": "- GDP at constant prices: 2014: 7.3; 2015: 6.2; 2016: 3.9; 2017: 2.5; 2018: 2.3; 2019: 2.2; 2020: (projection not listed)\n- Consumer prices, average: 2014: -1.0; 2015: -0.6; 2016: 1.7; 2017: 2.6; 2018: 2.0; 2019: 1.8; 2020: 1.9\n- Consumer prices, end of period: 2014: 1.1; 2015: 0.9; 2016: 3.0\n- Credit to private sector (end of period): 2014: -5.1; 2015: -3.8; 2016: 4.1; 2017: 2.7; 2018: 4.5; 2019: 4.4; 2020: 4.6\n- Broad money (M2): 2014: 5.2; 2015: 5.5\n- Central government balances (accrual), revenue (in percent of GDP): 2014: 24.5; 2015: 24.8; 2016: 26.8; 2017: 26.5; 2018: 26.1; 2019: 25.9; 2020: 25.7\n- Expenditure (in percent of GDP): 2014: 29.2; 2015: 26.0; 2016: 24.3; 2017: 23.7; 2018: 23.3; 2019: 22.8\n- Capital expenditure (in percent of GDP): 2014: 9.2; 2015: 8.4; 2016: 4.3; 2017: 3.8\n- Primary balance 1/: 2014: -1.1; 2015: 5.3\n- Primary balance (excl. CBI revenues): 2014: 1.6\n- Overall balance (in percent of GDP): 2014: -4.7; 2015: -1.2; 2016: 2.4; 2017: 2.9\n- Public debt (including guaranteed) 2/ (in percent of GDP): 2014: 101.8; 2015: 91.7; 2016: 83.4; 2017: 71.8; 2018: 65.8; 2019: 60.4; 2020: 54.9\n  - Domestic: 2014: 34.1; 2015: 29.1; 2016: 25.6; 2017: 23.5; 2018: 21.0; 2019: 18.3; 2020: 16.0\n  - External: 2014: 67.7; 2015: 62.6; 2016: 57.9; 2017: 48.3; 2018: 44.8; 2019: 42.2; 2020: 38.9\n- Imputed net international reserves (US$ mn): 2014: 158.3; 2015: 188.5; 2016: 192.3; 2017: 194.8; 2018: 203.5; 2019: 213.4; 2020: 224.0\n- Imputed net international reserves (in months of imports): 2014: 5.0; 2015: 4.8\n- Current account balance (in percent of GDP): 2014: -17.5; 2015: -14.6; 2016: -15.4; 2017: -15.0; 2018: -14.4\n- Exports of goods and services (in percent of GDP): 2014: 27.9; 2015: 27.2; 2016: 29.0; 2017: 28.2; 2018: 28.4; 2019: 28.7\n- Imports of goods and services (in percent of GDP): 2014: 45.5; 2015: 44.7; 2016: 43.6; 2017: 43.4; 2018: 43.7\n- External debt (gross, in percent of GDP): 2014: 143.0; 2015: 135.3; 2016: 129.0; 2017: 117.5; 2018: 113.0; 2019: 109.4; 2020: 105.2\n\nSources: Ministry of Finance; Eastern Caribbean Central Bank; and Fund staff estimates and projections.\n\nPress Release No. 17/182 — IMF Communications Department\n\n---\n\n\n References\n\n- The Executive Board\n- David Lipton\n- Grenada and the IMF\n- Press Releases\n- PRESS CENTER\n- Press Release No. 14/310\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada"
    }
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    "[Structured JSON version](/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada/index.json)",
    "[Bundle manifest](/en/news/articles/2017/05/18/pr17182-imf-executive-board-completes-final-review-under-the-ecf-arrangement-for-grenada/bundle-manifest.json)",
    "Published: May 18, 2017",
    "The Executive Board completed the sixth and final review of Grenada’s performance under a three-year arrangement under the Extended Credit Facility (ECF).",
    "Completion of the review enables disbursement of the equivalent of SDR 2 million (about US$2.8 million), bringing total resources made available to Grenada to the equivalent of SDR 14.04 million (about US$19.4 million).",
    "The ECF arrangement was approved by the Executive Board on June 26, 2014.",
    "The government met all continuous and end-December 2016 performance criteria and structural benchmarks.",
    "The economy grew by about 3.9 percent in 2016, reflecting continued strong construction activity and steady external demand for Grenada’s tourism services.",
    "The pace of restructuring of public debt accelerated in recent months.",
    "Grenada’s debt-to-GDP ratio declined to 83.4 percent at end-2016 from 108 percent in 2013.",
    "The program’s core objectives achieved: restoring fiscal sustainability, strengthening the financial sector, and setting the stage for sustainable growth.",
    "Authorities passed: the Fiscal Responsibility Act, the Public Debt Management Act, and the Public Finance Management Act.",
    "The government raised total social spending under the program and improved targeting of social transfers.",
    "Grenada’s banking sector has strengthened and financial stability has improved.",
    "Grenada remains a small open economy susceptible to external shocks, including natural disasters and swings in tourism demand and commodity prices.",
    "Public debt is still relatively high; authorities need to continue efforts to reach medium-term debt targets, lower unemployment, raise productivity, and broaden the base of growth.",
    "Important remaining tasks include regularizing all outstanding arrears and concluding discussions with remaining creditors as soon as possible.",
    "Continued efforts are needed to strengthen regulation and supervision of the non-bank financial sector.",
    "Adhere to the strengthened, rules-based fiscal policy framework to meet medium-term debt targets and build up reserve buffers.",
    "Advance structural reforms that promote broad-based growth and lower unemployment.",
    "Implement legislation passed during the program and follow through on accountability systems accompanying the fiscal framework.",
    "Remove impediments to private sector activity, advance institution-specific reforms to state-owned enterprises, and revitalize the agriculture sector.",
    "Strengthen labor market skills and mobility and implement public service management reform.",
    "Strengthen regulation and supervision of the non-bank financial sector so the financial system contributes more effectively to private sector growth.",
    "GDP at constant prices: 2014: 7.3; 2015: 6.2; 2016: 3.9; 2017: 2.5; 2018: 2.3; 2019: 2.2; 2020: (projection not listed)",
    "Consumer prices, average: 2014: -1.0; 2015: -0.6; 2016: 1.7; 2017: 2.6; 2018: 2.0; 2019: 1.8; 2020: 1.9",
    "Consumer prices, end of period: 2014: 1.1; 2015: 0.9; 2016: 3.0",
    "Credit to private sector (end of period): 2014: -5.1; 2015: -3.8; 2016: 4.1; 2017: 2.7; 2018: 4.5; 2019: 4.4; 2020: 4.6",
    "Broad money (M2): 2014: 5.2; 2015: 5.5",
    "Central government balances (accrual), revenue (in percent of GDP): 2014: 24.5; 2015: 24.8; 2016: 26.8; 2017: 26.5; 2018: 26.1; 2019: 25.9; 2020: 25.7",
    "Expenditure (in percent of GDP): 2014: 29.2; 2015: 26.0; 2016: 24.3; 2017: 23.7; 2018: 23.3; 2019: 22.8",
    "Capital expenditure (in percent of GDP): 2014: 9.2; 2015: 8.4; 2016: 4.3; 2017: 3.8",
    "Primary balance 1/: 2014: -1.1; 2015: 5.3",
    "Primary balance (excl. CBI revenues): 2014: 1.6",
    "Overall balance (in percent of GDP): 2014: -4.7; 2015: -1.2; 2016: 2.4; 2017: 2.9",
    "Public debt (including guaranteed) 2/ (in percent of GDP): 2014: 101.8; 2015: 91.7; 2016: 83.4; 2017: 71.8; 2018: 65.8; 2019: 60.4; 2020: 54.9",
    "Imputed net international reserves (US$ mn): 2014: 158.3; 2015: 188.5; 2016: 192.3; 2017: 194.8; 2018: 203.5; 2019: 213.4; 2020: 224.0",
    "Imputed net international reserves (in months of imports): 2014: 5.0; 2015: 4.8",
    "Current account balance (in percent of GDP): 2014: -17.5; 2015: -14.6; 2016: -15.4; 2017: -15.0; 2018: -14.4",
    "Exports of goods and services (in percent of GDP): 2014: 27.9; 2015: 27.2; 2016: 29.0; 2017: 28.2; 2018: 28.4; 2019: 28.7",
    "Imports of goods and services (in percent of GDP): 2014: 45.5; 2015: 44.7; 2016: 43.6; 2017: 43.4; 2018: 43.7",
    "External debt (gross, in percent of GDP): 2014: 143.0; 2015: 135.3; 2016: 129.0; 2017: 117.5; 2018: 113.0; 2019: 109.4; 2020: 105.2",
    "[The Executive Board](http://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[David Lipton](http://www.imf.org/external/np/omd/bios/dl.htm)",
    "[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/)",
    "[Press Release No. 14/310](http://www.imf.org/external/np/sec/pr/2014/pr14310.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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