by Linda Straker
- Suspension of payment, not moratorium, from Paris Club
- Governments of France, UK and USA participate in reorganisation of Grenada’s debt
- “Time-bound suspension of debt service” effective from 1 May to 31 December 2020
Under the Paris Club Debt Service Suspension Initiative (DSSI), provided to Grenada in May 2020, the country will have to pay interest and penalty for the period in which the debt payment was suspended by the informal group of official creditors whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by borrower countries.
“What we received from the Paris Club was not a moratorium, it was a suspension of payment,” said Trade Minister, Oliver Joseph, on Thursday during the weekly post-Cabinet briefing. “What the Paris Club did was to grant an 8-month suspension of payment of interest and capital to Grenada. This is not a waiver of the interest and penalty; after the suspended period we will have to pay the interest that we did not pay for the 8 months.”
“Of course, we welcome that because we have to had to pay debts and at the same time service our local obligation. Any ease of payment is helpful,” said Joseph. “Grenada was one of the few countries that got the suspension because of the way we are managing debt and our finances.”
Prime Minister and Minister of Finance, Dr the Right Honourable Keith Mitchell, in May welcomed the Paris Club DSSI which will grant the country suspension of debt service between May and December 2020.
A press release issued by the Paris Club earlier that month confirmed Grenada’s eligibility for the DSSI which is also endorsed by the G20, and that the “time-bound suspension of debt service” will be effective from 1 May to 31 December 2020.
In late March following the announcement from the World Health Organisation that Covid-19 had become a global pandemic, the World Bank and the International Monetary Fund (IMF) called on bilateral creditors to provide debt relief for IDA countries like Grenada, suspending payments on loans and allowing them to use available resources to fight the pandemic.
There was a subsequent endorsement of this by the G20 and Paris Club, with confirmation this week that Grenada is eligible to benefit from the Paris Club initiative. A news release from the government in May 2020 said that up to EC$14 million of Grenada’s debt burden will be suspended through this arrangement.
The members of the Paris Club which participate in the reorganisation of Grenada’s debt are the governments of France, the United Kingdom (UK) and the United States of America (USA).
These people who claim they represent our interest are not ready yet. We knew they were clueless a long time ago; however, the COVID thing is showing us they are more clueless and confused and less practical than almost all Native Grenadian. They need to stop pretending and be truthful with themselves and with us, Native Grenadians. These people have not solved one single problem for all they years they have been in government.
I guess China will foot the bill and take whatever little asset of value we have left. Better yet, how about this great tourism thing that they are always promoting and subsidizing; even though, we own no hotels. This truly sad and pathetic. These clueless people have taken us down a fool’s path due bad decisions they have and continue to make for us.
They don’t even seem to know that the people we owe did not have mercy on our ancestors; what makes these confused government people think we will receive mercy? I wonder if they know how much debt they put us in.
G20 People of Grenada please look at the members of this group and look at their involvement with the current situation and follow your head not what you been told by each members .