IMF Team Meets Government Officials In Grenada

by Amanda Banks, for LawAndTax-News.com

26 August 2008

A team from the International Monetary Fund (IMF) spent last Thursday in Grenada on a familiarization mission with the country's new government.

The team met with Prime Minister Tillman Thomas to get a view of his vision for Grenada and to reiterate the IMF’s commitment to Grenada.

Following the meeting with the new Grenadian Prime Minister, the IMF team met with the Minister of Finance, Nazim Burke, the Minister of State, Michael Church, and other senior officials.

The meeting provided an opportunity for the new ministers to share the government’s plans for the development and management of the Grenadian economy.

Minister Burke spoke of his Government’s commitment to stronger economic management and the successful completion of the Poverty Reduction and Growth Facility (PRGF) programme with the IMF.

In this regard, he indicated that the Ministry of Finance is currently being restructured to establish an Office of Private Sector Development; a Debt Management Unit; a Waste Reduction Unit; and a Public Procurement Authority. These offices, he explained, will facilitate better management of Grenada’s limited resources.

The Minister also spoke of:

• The need to reduce capital expenditure for 2008, given the tight fiscal situation;
• The Government’s plan to develop the energy sector as a main growth area in the economy;
• Improving the business climate and developing a transparent predictable Investment Code;
• Building a strong and clean financial fystem in Grenada;
• The need for tax reform, including the implementation of the Value Added Tax (VAT); and
• The revitalization of the rural economy.

The IMF team affirmed their commitment to working closely with the Government in providing technical assistance where requested.

A comprehensive review mission by the IMF is scheduled for mid September.

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