NO. 02/2015 DATE: January 5th, 2015
GRENADA CONCLUDES 50% HAIRCUT DEBT DEAL WITH THE EXPORT-IMPORT BANK OF THE REPUBLIC OF CHINA (TAIWAN)
ST. GEORGE’S, GRENADA, Monday January 5, 2015: The Government of Grenada announced today that it has concluded a comprehensive agreement to restructure its US$36.6 million (EC$98.8 million) indebtedness to the Export-Import Bank (EXIM) of the Republic of China (Taiwan). This landmark Agreement, which reduces the principal outstanding on the loan by 50%, resolves Grenada’s decade-long dispute with EXIM and puts an end to EXIM’s legal proceedings in the New York Courts.
Under the terms of the Agreement, the post-haircut balance on the loan will be repayable over 15 years–including a grace period of three and a half years–at an interest rate of 7%. The Agreement also includes a ‘hurricane clause’, which will allow Grenada to defer payments for a predetermined period should a natural disaster compromise the Government’s ability to service debt in a timely manner in the future.
Commenting on the development, Grenada’s Prime Minister and Minister of Finance, Dr. The Right Hon. Keith Mitchell, said “We are very pleased that our relations with the Republic of China (Taiwan) have now been normalised through the conclusion of this important Agreement with EXIM. We are grateful to the Bank for recognising the extent of Grenada’s debt relief requirements, and for supporting the Government’s efforts to restore viability to Grenada’s public finances.”