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Grenada wants IMF to conduct first review of ECF programme

Published:Friday | January 2, 2015 | 12:00 AM

The Grenada government says it is confident that the measures outlined in its Memorandum of Economic and Financial Policies (MEFP) will ensure that the island will meet the criteria outlined in the Extended Credit Facility (ECF) it has entered into with the International Monetary Fund (IMF).

Prime Minister Dr Keith Mitchell, who is also the island's finance minister, has written to the Washington-based financial institution, indicating that based on the economic performance to date, his administration is requesting the IMF "complete the first review of the arrangement under the ECF, approve the proposed new performance criteria for June 2015 and December 2015, as well as the new structural benchmarks for 2014-15".

He said his administration also wanted the IMF to "approve the second disbursement under the arrangement".

Earlier this year, Grenada signed a three-year US$21.7-million ECF programme with the IMF, and Mitchell, in his letter, said "we are confident that the policies described in the June 2014 MEFP ... are adequate to achieve the programme's objectives.

"However, if necessary, the Government stands ready to take any additional measures that may be required. The Government will consult with the Fund on the adoption of such measures and in advance of revisions to the policies contained in the MEFP, in accordance with the Fund's policies on such consultation."

Mitchell said that his administration will also provide the Fund with all the relevant information required to complete programme reviews and monitor performance on a timely basis.