IMF approves Grenada loan

The International Monetary Fund (IMF) has approved a US$13 million loan for Grenada to assist with its economic restructuring programme.



The IMF said the new loan is aimed at helping the Tillman Thomas government cushion the effects of the global financial crisis.



It will also support Grenada\'s programme for economic reforms targeted at increasing growth, reducing poverty and strengthening the private sector.



Meanwhile the IMF said signs of recovery are beginning to emerge in St Lucia this year although some risks remain, given the island\'s continued dependence on tourism.



Following an executive assessment, officials recommended that the government in Castries proceed with plans to implement the Value Added Tax this year.



The IMF stressed the need to reduce public spending and contain the public sector wage bill over the medium term, and urged the Stephenson King administration to improve the business climate and boost labour productivity.