Standard & Poor’s Ratings Services, an internationally renowned auditing agency, raised its long-term sovereign credit on Grenada to ‘B-‘from ‘CCC+,’ reflecting steps taken by the Government to improve debt-payment management. Standard & Poor’s also affirmed its ‘C’ short-term sovereign credit rating on Grenada. The outlook remains stable.

This is because debt-servicing procedures lower the risk of new domestic debt arrears. However, of most significance are the administrative measures taken by the Government in June 2007 to streamline its debt-payment mechanism significantly reducing the risk of new intermittent arrears on Grenada’s domestic commercial debt. Consequently, the risk of imminent default on domestic and external debt has subsided, which is reflected in the Rating upgrade.

Investors have tremendous confidence and feel comfortable in investing in Grenada, and international lending agencies are willing to do business with us because of the aforementioned economic outlook. We are also the beneficiary of loans at a lower rate due to this outlook. Grenada is the only OECS country to receive such a positive Rating and this is indicative that we are poised for significant take-off.

All this in consideration that Grenada’s fiscal accounts and economic structure were severely impaired following 2004 and 2005 hurricanes Ivan and Emily respectively – a reality that the NDC and their cohorts conveniently fail to acknowledge. 

The Government in its proactive approach has been dutifully engaged in providing the necessary assistance to all Grenadians with particular focus on the poor and vulnerable.

Today, from the numerous international news agencies, we are witnessing price increases in energy and basic food related items. The factors that affect us are: (1) Supply and Demand factor (2) Import CIF prices (3) International currency variations (4) Our Domestic mark-up (price control). 

This socio-economic phenomenon (price fluctuation) originating from afar has a direct impact on international and domestic trade, and like our regional counterparts we have to manage this predicament the best way we can. This Government is exercising due diligence in taking action to cushion the impact of the increase in prices.

Government in its unwavering quest to meet the needs of its citizens, has been taking preventative steps to defray additional financial burden on the local population by providing subsidy where and whenever feasible. It is constructive to understand and appreciate that this added social Safety Net has its limitations relative to affordability.

We all know of the ongoing efforts to make more money, per person, available through the Public Assistance Programme; The Necessitous Fund – to help children go to school (transportation); Water – individual water service to the elderly that replaces the void left by NAWASA’S removal of stand pipes (service ends at time of death); Burial Assistance – (who fall outside the usual insurance assistance); Disaster Assistance – for fire or localized disaster (not NaDMA related).

Primary School Financial Assistance Programme – assistance in the form of uniforms, books, transportation, and other necessities; School Feeding Programme – the nation’s primary, select pre-primary and secondary schools are supplied monthly with cash disbursements for the purchasing of select food items, salaries for cooks, and equipment to maintain kitchens – promoting the “we eat what we grow ”idea; and the Textbook Rental Programme – to make core text books available to needy students.         

As predicted in the 2006 budget presentation, Government’s Economic Reform Programme (2006 – 2008) has four (4) key elements aimed at restoring the long-term economic base of the country which, based on Today’s Standard & Poor’s positive Rating, is on target: (1) Enhancing Growth. (2) Restoring Fiscal and Debt Sustainability. (3) Reducing Vulnerabilities. (4) Poverty Alleviation. This Reform Programme received enormous support from regional and international organizations.

Fiscal Benchmark – as noted in the 2006 budget presentation: “a key element under the Economic Reform Programme is that the budget should be consistent with the medium term fiscal objectives of restoring debt and fiscal sustainability.”

This Government believes in doing things with the full complement to achieve success and sustainability in spite of the cost, and our infrastructural development has such consideration. Government has a policy of building roads with proper drainage and expansion wherever possible; design state-of-the-art protective measures for rock and soil slides; upgrade and expand bridges; and seeking to make marked improvement when and wherever possible.

This Government has taken a different approach to that of its predecessors in doing things properly, hence we had to redo works in many areas and as such, there is still much work to be done. Though the challenge is daunting, we are committed, confident and resolute in the pursuit of our People’s betterment. What is important to note is that decisions are expertly and dutifully taken in the interest of all.

NNP Perspective - week ending August 10th, 2007

"Reflecting with Pride, Advancing with Vision"

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