Grenada Seeking Formal Arrangement With IMF

ST. GEORGE’S, Grenada CMC – The Grenada government says it has invited a delegation from the International Monetary Fund (IMF) to assess the current economic situation in the country.

Grenada is discussing a formal arrangement with the Washington-based financial institution and a government statement said that the team, headed by Aliona Cebotari will focus on the fiscal performance of the country for 2013 as well as the proposed debt restructuring programme before leaving here on September 13.

“Government’s plans and priorities for the New Economy, including growth and job creation and projections and reforms for the medium term 2014 – 2016,” will also be examined according to the statement.

The statement said that Prime Minister Dr. Keith Mitchell has emphasised that “such a programme must have growth and job creation as its central focus”.

Earlier this week, Church leaders urged the Grenada government to resist any attempt by the IMF to increases taxes and cut social services as the island grapples with attempts at turning around a sluggish economy.

The Conference of Churches Grenada in a statement said that it was deeply concerned about the prevailing socio-economic situation in the country and any attempt to impose additional taxes on the Grenadian population should be resisted.

The religious group said in addition there were a number of people, including those with academic qualifications, who have not been able to find employment and that the  social problems here have reached alarming proportions.

“It is against this background that we strongly urge our government to resist any pressure to increase taxes or to make further cuts to social, medical or educational services.

“Revenue can be increased by ensuring that existing taxes are not evaded and that all taxes, especially VAT (Value Added Tax), are efficiently collected from all who are liable,” the religious group said.

The religious group urged the Mitchell administration to give “serious consideration” to the nine points in the document “A Jubilee for Grenada Now” that came out of a workshop on debt held here in May.