IMF tells Grenada to think twice about China loan for hotel
THE Grenada government has been strongly advised to rethink plans to seek a US$107 million loan from China to finance the construction of a 100-room luxury hotel in the island.
The International Monetary Fund (IMF) has told the country that a loan of that magnitude, which translates into 17 per cent of the country’s GDP, could jeopardise debt sustainability.
The lending agency offered that advice in its ‘Staff Report for the 2009 Article IV Consultation, Fourth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility’.
The authorities in Grenada are seeking the concessional loan from the Export-Import Bank of China for the project that is a joint venture with private investors, but the IMF said it is not the right move.
