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Debt treatment -
May 12, 2006

Supporting agreements with the international institutions

Program with the IMF under the Poverty Reduction and Growth Facility (PRGF) approved on April 17, 2006


Total external debt of the country

$437 million as of December 31, 2005

$17 million of which being due to Paris Club as of January 01, 2006

Amounts treated

Categories of debt treated

Treatment of arrears as of December 31, 2005

Treatment of maturities falling due from January 01, 2006 up to December 31, 2009

Repayment profile

Treatment under Classic terms

  • repayment of non ODA credits over 12 years, with 5 years of grace
  • repayment of ODA credits over 12 years with 5 years of grace

Specific provisions

Good will clause

At the request of the representatives of Grenada, Paris Club Creditors agreed in principle to meet in order to examine the situation of Grenada's debt under the Evian Approach at the end of the current Agreement. They shall assess the sustainability of Grenada's debt and Grenada's commitment to policies that shall secure an exit from the Paris Club and to implementing a comparable treatment from its other external creditors.

Based on that assessment and if Grenada fulfils the criteria here above mentioned and provided that Grenada has established a satisfactory track-record under these Agreed Minutes, made all payments on due date, and concluded a follow-up IMF programme, Paris Club creditors expressed their willingness to consider a debt treatment under the Evian Approach on terms tailored to Grenada's debt situation.



  • First phase : From January 01, 2006 up to December 31, 2006, implemented at the signature of the agreement
  • Second phase : From January 01, 2007 up to December 31, 2007, implemented on September 19, 2008
  • Third phase : From January 01, 2008 up to December 31, 2009, implemented on September 19, 2008

Payment of non-consolidated amounts before November 30, 2006

Comparability of treatment provision

In order to secure comparable treatment of its debt due to all its external public or private creditors, the Government of Grenada commits to seek promptly from all its external creditors debt reorganisation arrangements on terms comparable to those set forth in these Agreed Minutes, while trying to avoid discrimination among different categories of creditors. Consequently, the Government of Grenada commits to accord all categories of creditors -and in particular creditor countries not participating in these Agreed Minutes, and private creditors- a treatment not more favourable than that accorded to the Participating Creditor Countries for credits of comparable maturity.

For the purpose of the comparison between the arrangements concluded by the Government of Grenada with its creditors not listed in these Agreed Minutes on the one hand, and with the Participating Creditor Countries on the other hand, all relevant elements shall be taken into account, including the real exposure of the creditors not listed in these Agreed Minutes, the level of cash payments received by those creditors from the Government of Grenada as compared to their share in Grenada's external debt, the nature and characteristics of all treatment applied, including debt buy backs, and all characteristics of the reorganized claims and in particular their repayment terms whatever forms they take and in general the financial relations between the Government of Grenada and the creditors not listed in these Agreed Minutes.

Cut-off date

June 30, 2004

Organisation of the session

The meeting was chaired by M. Ambroise Fayolle, Co Chairman of the Paris Club.

The head of the debtor country's delegation was M. Anthony Boatswain, Minister of Finance and Planning.


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