Grenada Government Signs Loan With Saudi Fund For Development

• Approximately 2 months after the Government sought authorisation from the Lower and Upper Houses of Parliament to borrow US$100 million from the Saudi Fund for Development (SFD), Finance Minister Dennis Cornwall signed the loan agreement with the Fund.
• The signing took place on the sidelines of the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund held in Marrakech, Morocco, from October 9-15. This is Grenada’s first loan from the SFD, and as a result, the country has become the 91st nation to receive financial assistance from SFD.
• According to a news item on the Arabnews website, the loan is expected to help develop climate-smart infrastructure in St George’s, Grenville, and neighbouring areas in Grenada.
• “The project will include constructing breakwaters, developing hydro and sewage networks, modernising the waste treatment system, and using remote sensors to monitor air pollution, thus helping the Caribbean nation become more environmentally friendly and climate-smart,” said the news item which quoted from a release disseminated by the Fund. It is also anticipated to fuel direct and indirect employment opportunities.
• That being said, the Government of Grenada has yet to issue a news release about the terms and conditions of this new loan agreement and it is unclear whether the document will be tabled in Parliament.
• However, during the Lower House debate of the Loan Authorisation Resolution, Prime Minister Dickon Mitchell told the House that his Government is not keen on borrowing money. “And, if we do borrow, we will ensure that it is concessional as we can get and that is the reason why there is no loan at this point in time because we are ensuring that if we do get to the point where there is a loan, it must be on the best terms possible,” he said.

(Source: Now Grenada)