ST GEORGE’S, Grenada (CMC) – Grenada has signed a bilateral debt agreement with the United States, as part of the Paris Club Debt Service Suspension Initiative that provides for the island to consolidate and reschedule debt payments that were due between May and December 2020.

“Once in force, the agreement defers until 2022-24 the payment of more than US$320,000 in principal and interest due between May and December 2020 so that Grenada can focus on immediate pandemic needs,” said a statement from the US Embassy here.

The agreement which was signed on Friday, implements the terms of the Paris Club-G20 Debt Service Suspension Initiative, of which Grenada is a beneficiary.

Minister for Finance Gregory Bowen and US Chargé d’ Affaires Karl Duckworth, signed the agreement.

In May 2020, Prime Minister and then Minister of Finance Dr Keith Mitchell welcomed the Paris Club Debt Service Suspension Initiative, which will grant the country suspension of debt service between May and December 2020.

In March 2020 following the announcement from the World Health Organisation that COVID-19 has become a global pandemic, the World Bank and the International Monetary Fund called on bilateral creditors to provide debt relief for countries like Grenada, suspending payments on loans and allowing them to use available resources to fight the pandemic.