IMF approves millions for Grenada

The International Monetary Fund (IMF) has approved a loan of US$ 4.8 million for Grenada under its Poverty Reduction and Growth Facility programme.



The Washington-based financial institution said the loan follows the executive board’s completion of the first review of Grenada\'s economic performance.



The IMF also approved the re-phasing of the remaining disbursements and increases of about US$2.4 million.



It said the first review was delayed because of the time needed to address an unregulated bank, fiscal slippages, and the slow pace of structural reforms.



The executive board granted the government’s request for a waiver of a missed 2006 quantitative performance criterion on the central government primary balance, which was missed in part because of higher-than-anticipated costs of reconstruction.



The three year loan arrangement with Grenada was originally approved for a total of $17.1 million in April 2006.