by Linda Straker
- Loan agreement would finance Climate Smart infrastructure projects
- Opposition Leader warned massive loan can increase debt-to-GDP ratio
- PM affirmed no loan and no signed loan agreement as yet
Prime Minister Dickon Mitchell said that his administration’s decision to seek authorisation from the Lower House of Parliament to borrow US$100 million from the Saudi Fund for Development (SFD) is a pre-emptive measure so that if a decision is made to sign a loan agreement with the Fund, his government already has Parliament approval.
“Authorisation to borrow is not borrowing. Our law requires that if we are going to borrow or in the event we are thinking about borrowing, it will make good sense for us to get approval, rather than borrow then come to seek approval. So let me make it clear for the Saudi Development Fund loan, there is no loan as yet, and there is no signed loan agreement as yet,” he informed Members of the House of Representatives during a sitting last Friday.
The Prime Minister said 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 actually a loan, it must be on the best terms possible,” he said.
Prime Minister Mitchell, who gave up the role as Finance Minister on 1 April, said that no financial institution would press his administration to sign a loan agreement that is not favourable for the country. “I will not be badgered into signing a loan because it’s been offered to me. All kinds of people are offering money all over the place if you are prepared to borrow money on non-favourable terms,” he said during his contribution to the debate on the resolution seeking the authorisation.
“We are acutely aware of our commitment to ensure that our debt to GDP ratio remains low and continues to be lowered. Any loan agreement to be signed will first be put through the debt management team to give us their counsel as to whether or not it is an appropriate borrowing,” he reminded the House.
Opposition Leader Dr Keith Mitchell, who is opposed to the borrowing, warned that a loan of this massive amount can increase the debt-to-GDP ratio of the country. “We do not know the terms of the loan and conditions, so we are all blind here in a serious matter of US$100 million to be borrowed in the name of the country…when you put that in the mix of things, your debt-to-GDP ratio can increase overnight,” he said.
The resolution presented by Finance Minister Dennis Cornwall explains that the Government of Grenada is desirous of entering into a loan agreement with the Saudi Fund for Development to finance Climate Smart infrastructure projects that address Grenada’s resilience. These projects look at mitigation and adaptation measures to the harmful effects of climate change on some of the islands’ urban, rural and major tourism sites, including the seacoast and beaches.
This is the second loan authorisation resolution sought by the government. An authorisation for EC$350 million to finance the 2023 budget was approved in December 2022 following the approval of the 2023 budget.
Never allow your government to get PRIOR APPROVAL for a huge loan like this unless the terms and purpose are transparent and public. The Saudis are another country that do not respect HUMAN RIGHTS and weild far too much power. Don’t be sucked in by money being wiggled under your noses. Keith already sold out before Dickon let’s not have a repeat with the Saudis and how they would shape Grenada under the guise of climate control remediation.
Look at the disdain the Egyptian Sawiris already has for Grenada. His derogatory remarks about the Beach House when he bought that. None of the billionaires give a damn about Grenadian culture, architecture or values.
Chinese already own Grenada via loans and fake assistance arranged by Keith Mitchell. They have stolen Levera and the water source and endanger the PROTECTED Leatherback turtle nesting site. Watch the Chinese advertise how investing in Grenada means you will NEVER pay ANY taxes to the Government of Grenada AKA as the citizens of Grenada in exchange for taking protected land to gain access to the USA via Grenadian Citizenship. Their measley CBI investment is a joke to the Chinese in exchange for a life in the USA. Watch their videos as they market yet another huge development that steals water
electricity, access to native lands, and clean air from Grenadians. Chinese don’t care about anything or anyone and are doing FINANCIAL COLONIALIZATION around the world but especially in small islands like Grenada.
Remember, when you borrow you must pay back the lender. Grenada must stop taking easy money from other countries or one day those other countries will own Grenada. Beware the wolf who dress as a sheep.