Acting Permanent
Secretary in the Ministry of Finance, Lennox Andrews maintains
that the sacrifice being made by Grenadians in the aftermath
of two recent devastating hurricanes is necessary to demonstrate
to the international community that the Government and people
of Grenada also want to help themselves.
He made
the statement while speaking to journalists during an International
Monetary Fund IMF) Tele-conference last week Thursday about
the actions taken by Government to rebuild the economy following
the passage of Hurricanes Ivan and Emily.
Andrews
said that government is working with the fund to put in place
some social programmes that would help cushion the effects of
some tough fiscal measures on the poorer population.
According
to Andrews, while government is set to seek further debt relief
from the Paris Club, the administration is currently working
with the IMF to implement a Poverty Reduction and Growth Facility
in the post-Ivan era.
He said
that this comprehensive medium term economic reform programme
represents the centerpiece of government's actions to rebuild
Grenada. He pointed out that already a number of key fiscal
measures have been taken such as the 3 % levy on the income
of workers and a 45% increase in retail fuel prices.
The programme,
which will be phased in over a three-year period seeks to restore
economic growth, strengthen government finances, reduce the
debt stock and debt servicing and reduce poverty. The senior
civil servant agreed that the plan could mean further belt tightening
for nationals who are now rebuilding from the devastation of
both hurricanes.
Andrews
said that Grenada's growth outlook this year is very good with
the tourism industry showing signs of recovery and that the
economy could be further boosted next year with the island's
hosting of the 2007 cricket world cup.
He said
that while some strides have already been made there is still
a long way to go including re-energising the agricultural sector
and aiding the population, many who are still living in poor
conditions before the country can get back to pre-Ivan level.
IMF's Mission
Chief for Grenada, Abebe Selassie said that the Poverty Reduction
and Growth Facility being implemented by Grenada has been worked
out specifically for the island and makes room for vulnerable
groups.
