NEW YORK, CMC - A major international credit rating agency says the liquidity crisis leading to Grenada’ default on its US and Eastern Caribbean (EC) dollar bonds is “credit negative” for the country and elevates the risk of distress spilling over to member countries in the Eastern Caribbean Currency Union (ECCU).
The newly-elected Dr. Keith Mitchell administration in Grenada said it would default on the bonds due 2025 because it is unable to secure financing to make a coupon payment on Friday.
The Wall Street-based Moody’s Investors Service said Grenada’s default has “systemic implications for the ECCU through two channels, financial and institutional”.