GRENAD (CMC) -- The Grenada government said Monday, January 31, the International Monetary Fund (IMF) had reduced the interest rate payable on loans given to the island by the Washington-based financial institution.

The Ministry of Finance said that the IMF had agreed to reduce the interest rate from 3 percent 0.5 percent "effectively immediately."

It said the IMF Board took the decision earlier this month "to lower interest rates on its natural disaster assistance loans to low income countries."

"As part of its assistance to Grenada after Hurricane Ivan, Grenada received a loan of US$4.4 million at a rate of 3 percent. Grenada also received a similar loan in 2003 after Tropical Storm Lili. The interest rate on both loans is now 0.5 percent," the Finance Ministry statement said.
It said that Grenada is now engaged in a Debt Restructuring Programme in an effort to reduce the island's debt obligation.

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