CCG wants to see people-centred resolution to debt situation

AS Government continues its effort to decide on the best solution to resolving the island’s debt situation with its creditors, the Conference of Churches Grenada (CCG) believes that emphasis should be placed on a people-centred resolution that will reduce the debt stock by two-thirds.

“We urge the Government to push for a reduction in Grenada’s debt stock to a maximum level of 50 per cent of GDP due to the harmful effects of debt above this level on economic growth. This will require, in practice, an upfront debt stock reduction of approximately two-thirds. It is essential that debt restructuring in Grenada restore long-term debt sustainability and support a return to economic growth,” is one of the recommendations the CCG presented to Economic Affairs Minister, Oliver Joseph, following a two-day workshop organised by the umbrella-based religious grouping.

Economic Affairs Minister, Oliver Joseph, receiving the
CCG’s recommendations from Reverend Osbert James.

Some of the participants at the Conference of
Churches Grenada (CCG) workshop on debt relief.

The workshop, which had participation from the Grenada Civil Society Organisation, the Caribbean Debt Network, Jubilee Germany, Jubilee USA and the United Nations Development Programme, also called for an independent debt sustainability assessment, external mediation and a creditors’ conference.

Explaining that the debt restructuring process should involve all external creditors – commercial, multilateral and bilateral, the CCG said: “This will ensure fairness between creditors and mean that each creditor is subject to a lower ‘haircut’ on its claims. This will also be an incentive for all creditors to take part. We encourage the Government to explore options for a comprehensive solution.”


The CCG said that while it appreciates that the Government wishes to resolve the current debt situation in a timely manner and secure access to new sources of external finance to meet the country’s needs, they will want that Government  seeks consensus from the people in advance of any agreement with the IMF.

“Before Government signs any programme, it must seek consensus with the people on the package of reform measures the country will undertake. This will ensure that the programme respects the priorities of the local people. We, therefore, insist that the Government shares all documents with the Committee of Social Partners and the public with ample time for review and debate before any agreements are signed,” said the recommendations, which were developed by the more than 20 participants at the workshop and presented to Minister Joseph by Rev. Osbert James.

Looking ahead, the CCG said that it will be essential for Grenada to reduce the risk of future debt crises and insist that the Government strengthens its legal and administrative structures to ensure greater transparency, accountability and participation.

“Specifically, we insist that the Government commits to a mechanism which monitors and evaluates new debt commitments. This mechanism must involve the social partners. There is also a need to improve debt management capacities. These reforms will help put in place the tools to reduce the risk of future debt crises,” the recommendations elaborated. (LS)