Budget Speech 2011 - Government of Grenada

5.7 THE GRENADA TRANSFORMATION FUND
Mr. Speaker, to support the five transformational sectors and as a basis to
mobilize additional grant and other resources, I am pleased to announce
the establishment of a Grenada Transformation Fund. An initial allocation
of $2 million has been provided in this budget.
5.8 STRENGTHENING ECONOMIC MANAGEMENT AND
IMPROVING THE BUSINESS CLIMATE
Mr. Speaker, our Government will continue to focus on stronger economic
management.
The Extended Credit Facility
In April 2010, Grenada successfully completed the Poverty Reduction and
Growth Facility (PRGF) with the International Monetary Fund which was
signed by the previous Administration in April 2006.
On completion of this programme, Grenada entered a new three-year
programme called an Extended Credit Facility.
Some have questioned why should Grenada enter a new programme with
the Fund?
Mr. Speaker, it must be recalled that the previous programme negotiated
by the former Administration was in response to the difficult economic
situation facing Grenada after the passage of Hurricanes Ivan and Emily.
At that time, the economy was expected to grow by at least 3 percent
per annum during the period 2006-2010. No one foresaw the Great
Recession.
It is now a matter of public record that Grenada has experienced average
growth of -0.9 percent during this period. According to the IMF, the
impact of the crisis on Grenada in terms of loss of output has been worst
than Hurricane Ivan. In short, the Great Recession can be described as an
economic hurricane.
2011 Budget Statement Page 55