Grenada opens up for business

PORT OF SPAIN, Trinidad - Dr Patrick Antoine, the chief economic advisor to the new Grenada Government, yesterday declared the island was open again after Tuesday’s general election at which the New National Party, led by Prime Minister Keith Mitchell, won all 15 of the constituencies. Speaking on his way to yesterday’s swearing-in ceremony, Antoine said the main challenge facing the new administration would be to raise revenue in the context of the declining economy. Grenada is planning to achieve higher revenues by reorganisation, restructuring and reform, said Antoine, outlining a proposal to “secure new revenue stream and gain some breathing space by debt restructuring and reorganisation.” He said Grenada planned to renegotiate its entire stock of debt, which amounts to EC$2.01 billion, which gives the island a debt-to-GDP ratio of about 98 percent. Grenada would also be looking at the possibility of debt forgiveness, Antoine said. On the expenditure side, he said, the new administration had to find ways to reduce the island’s expenditure. He added: “In the manifesto, we are committed to cutting the indirect cost of government by 15 to 20 percent,” which includes most items of recurrent expenditure except for wages and salaries. Among the items of expenditure that the incoming government would be looking to cut, would be building rental, travel, goods and services. He said Grenada would not reduce social spending since that was low on the island.