by Linda Straker
- End of first quarter of 2023, debt was EC$2,097.2 million or 59.1% of Gross Domestic Product
- Increase primarily due to disbursements from People’s Republic of China
- Government Guaranteed debt remained at 0.2% of domestic debt
The Government of Grenada is reporting that at the end of the first quarter of 2023, there was a 1.1% increase in total Central Government and Government Guaranteed debt. It stood at EC$2,097.2 million.
“At the end of the first quarter of 2023, the stock of Central Government (CG) and Government-guaranteed (GG) debt was EC$2,097.2 million, 59.1% of Gross Domestic Product (GDP). There was a 1.1% increase in total CG and GG debt when compared to the previous quarter and a 0.7% increase when compared to the same period in the previous year,” said the first quarter public debt bulletin.
The increase was primarily due to disbursements from the People’s Republic of China on the St George’s Airport Runway and Road Upgrade loan. The Bulletin explained that during the 1-year period covering the first quarter of 2022 to the first quarter of 2023 domestic debt decreased by 8.0% but external debt increased by 3.1%.
“As a percentage of the total of Central Government and Government Guaranteed debt, domestic and external debts were 20.1% and 79.9% respectively at the end of March 2023. Government Guaranteed debt remained at 0.2% of domestic debt,” the bulletin explained.
In the area of Disbursements & New Borrowing, total disbursements received in the first 2023 was EC$29.6 million with 86.2% coming from the Government’s loan with the People’s Republic of China. The amount received was EC$25.5 million. The remaining 13.8% was received from multilateral creditors: the Caribbean Development Bank, the International Development Association of the World Bank; The International Bank for Reconstruction and Development and the International Fund for Agricultural Development.
The Bulletin said, “When compared to the previous quarter, disbursements increased marginally by 1.6% but when compared to the first quarter in 2022 when disbursements totalled EC$2.2 million only, there was a significant increase. Economic sectors for which funds were disbursed include infrastructure, agriculture, healthcare, tourism and education.”
