Grenada Today - The National Newspaper of Grenada, Carriacou & Petite Martinique

A report released by the Washington-based International Monetary Fund (IMF) last Thursday on the status of the Eastern Caribbean Currency Union (ECCU) revealed that the public debt per person in Grenada is between EC $15,000.00 and $20,000.00

The figures were given by Assistant Director of the IMF Western Hemisphere Department, Ratna Sahay. She was speaking via tele-conference from St. Kitts to reporters across the ECCU member states who assembled at the different Eastern Caribbean Central Bank (ECCB) sub-offices in their territories for release of the report.

Sahay, along with other members of an IMF mission were on a two month stint in the ECCU meeting with the national and regional authorities in Antigua & Barbuda, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, as well as St. Vincent & the Grenadines.

Discussions were also held with civil society in each country as well as key regional institutions, including the ECCB, Organisation of Eastern Caribbean States (OECS) and the Caribbean Development Bank (CDB).

The recent surveillance focused on recent economic developments and prospects, challenges and opportunities facing the ECCU and to complement and strengthen the bilateral Article IV consultation that the IMF holds with the individual ECCU member countries.

Sahay disclosed that public debt has risen in most countries within the union, averaging nearly 115% of the Gross Domestic Product (GDP). According to the IMF official, the public debt per person in Antigua is $EC40, 000, Grenada between $15, 000 and $20,000, St. Lucia close to $10,000 and St. Vincent and the Grenadines about $5000.00.

Sahay noted that these monies are as a result of public borrowing of loans that have to be repaid in the future. She spoke of the authorities in the union expressing their intention to reduce their high public debt levels through a combination of fiscal consolidation, growth, asset sales and debt management.

"In this context, the mission commends the bold steps, such as the introduction of Personal Income Tax (PIT) in Antigua and Barbuda, the announcement of the closure of the sugar industry in St .Kitts and Nevis and fiscal consolidation achieved in Dominica", she said.

Sahay stated that another concern for the international body is the rise in poverty across the Union and the hope of the IMF is to get the necessary data so that those figures can be compared with other countries in the region. She noted, however that despite a very damaging hurricane season in the region, economic activity remained robust in 2004 and is expected to continue growing in 2005.

Sahay said the growth was driven by the construction sector especially in Grenada that was badly damaged during the passage of hurricane Ivan last year, and a sharp revival in the tourism sector.