ST. GEORGE'S, GRENADA, January 7, 2014 - GIS: The Government of Grenada announced 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 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 the bank’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 with this new agreement we have now been able to work out much more manageable terms to honour our debts with EXIM bank."