ST. GEORGE’S, Grenada, CMC – The Grenada government has successfully refinanced the estimated five million dollars (One EC dollar=US$0.37 cents) debt the Marketing & National Importing Board (MNIB) owed to a local commercial bank.
In April, the government announced a comprehensive debt restructuring for MNIB debts by the end of May this year.
The Ministry of Finance said that the restructuring of the debts will be on terms and conditions consistent with the government’s fiscal space.
In a statement, the ministry said that the terms of the new arrangement provide for consolidating all outstanding principal balances of debt owed by MNIB at an interest rate of four percent to be repaid over ten years, an interest-free loan for all particular interest-to-date to be repaid over ten years and the release of all existing securities to be replaced with a charge on the Consolidated Fund.
“These terms represent a significant improvement compared with the previous conditions applied to MNIB facilities at the bank. Specifically, the current interest rates stand at 6.5 percent and seven percent,” the Ministry of Finance said, explaining that a clause in the loan, which provides for property to be used as collateral, will no longer be tied to the restructured arrangement.
“This major accomplishment not only halts a further accumulation of arrears but also strengthens the government’s ability to successfully reform the MNIB by removing the lien on the Pack House property, ” the release said.
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