During the annual International Monetary Fund meetings, the IMF is meeting with the government of Grenada on a debt restructuring plan. Grenada has a public debt-to-GDP of nearly 110 percent. The island nation's economic growth over the past few years has remained stagnant due to the effects of the global economic slowdown and recovery from hurricanes.
"We join the Conference of Churches in Grenada and our Jubilee Grenada partners in calling for a fair debt deal that protects the most vulnerable," stated Eric LeCompte, Executive Director of Jubilee USA Network, a faith-based antipoverty organization. "We won't tolerate cuts to social protections or cuts in employment. We need a deal that is in the best interest of the citizens of Grenada."
On October 8th, the executive officers of Jubilee USA sent a letter to IMF Managing Director, Christine Lagarde, in support of the Conference of Churches in Grenada in their following requests:
- The IMF should publicly recommend an upfront debt stock reduction of at least two-thirds in line with suggestions made in recent IMF staff papers and other analyses
- When the government of Grenada receives IMF proposals for debt restructuring, the IMF should support the government of Grenada in sharing those documents with the broadest possible public constituencies for discussion and to seek national consensus before Grenada signs any agreement
- Any deal should be comprehensive and include all external creditors to prevent holdout creditors from exploiting Grenada's economic recovery or targeting public services for collection
- All parties should work in line with the UNCTAD principles of responsible lending and borrowing within this debt restructuring process. All parties should support accountable and transparent processes for the citizens of Grenada to monitor future lending and borrowing of their government
- Current employment and social protections for the poor and vulnerable should be maintained in any IMF supported agreement
Jubilee USA Network is an alliance of more than 75 US organizations, 300 faith communities and 50 Jubilee global partners. Jubilee's mission is to build an economy that serves, protects and promotes participation of the most vulnerable. Jubilee USA has won critical global financial reforms and more than $130 billion in debt relief to benefit the world's poorest people. www.jubileeusa.org