by Linda Straker
- Repayment on US$100 million loan from Saudi Fund for Development begins in 2031
- Finance Minister signed agreement in October 2023
- Loan to help develop climate-smart infrastructure
2031 will be the start date of repayment on the US$100 million loan Grenada recently obtained from the Saudi Fund for Development. Finance Minister Dennis Cornwall signed the agreement in October 2023 while attending the World Bank–International Monetary Fund meeting in Morocco.
Cornwall said that terms and conditions provide for the loan to be repaid in 25 years and the grace period will be 7 years. The interest rate will be 1.5%.
“This is a concessional interest rate,” Prime Minister Dickon Mitchell said during a news conference on Monday. “The money is not being channelled through any financial institution in the region. The loan agreement is a loan agreement between the Government of Grenada and the Saudi Fund for Development.”
“When we choose to request a disbursement or a drawdown, that is when the funds will be made available. Those funds will be made directly available to the Government of Grenada,” the Prime Minister disclosed.
In August, members of both the Lower and Upper Houses of Parliament approved a resolution for the Government to borrow US$100 million from the Saudi Fund for Development, expected to help develop climate-smart infrastructure in the towns of St George’s, Grenville, and other communities in Grenada. The projects include constructing breakwaters, developing hydro and sewage networks, modernising the waste treatment system, and using remote sensors to monitor air pollution.