ST. GEORGE’S, Grenada - PRIME MINISTER Hon. Tillman Thomas gave a dire assessment of Grenada’s current economic state during a national address last night (Mar. 31) at the Grenada Trade Center, but noted that he is hopeful for the future.
Saying that Grenada is currently in “a period of turbulence”, Thomas noted a number of factors over the past two years that have greatly affected the lives of Grenadians.
“During the past two years, the world has experienced a series of crises which have severely affected the way of life of all peoples everywhere. A food crisis, a fuel crisis, a financial crisis and now an unemployment crisis is sweeping through all countries of the world.
“Indeed, even here in Grenada, there are some families where both breadwinners who only a month ago had good paying jobs are now on the breadline,” the Prime Minister said.
Within the country, Thomas noted that tourism, remittances from Grenadians overseas and bank liquidity have all been on a major downward trend over the past year.
Adding to the strains of external forces, the PM said that the previously ruling, Keith Mitchell-led administration had racked up an astronomical amount of debt due to mismanagement.
“On assuming office, we found unpaid claims of EC $53 million to suppliers of building materials and local building contractors, truckers, caterers, and other suppliers. Of this sum, $37.0 million was accumulated in the 60 days leading up to the general elections.
“Increased monthly interest payments on loans restructured by the NNP government are also being paid. For example, in 2008, interest payments were $8.0 million. In 2009, interest payments will be $18.0 million,” Thomas said.
Despite these serious concerns, the PM remained confident that his government would be able to protect its citizens’ livelihoods through a number of “bold and decisive steps”.
Among these steps is the removal of the National Reconstruction levy, the offering of a tax amnesty for delinquent citizens and businesses, tax credit opportunities for the tourism industry and concessions to all Grenadians “under the duty free barrels programs effected in the months leading up to Christmas”.
Furthermore, Thomas said that his government predicts if Grenada continues on its current path to recovery, the International Monetary Fund and the European Union would increase their grant money to an estimated $45 million.
A number of investments in the private and public sectors, small businesses, social development and other local economy initiatives were also outlined during the speech.
“If we are to fulfill the plans outlined above, we need to work closely together as a nation. The need for a multipartite approach is greater now more than ever in this crisis.
“We articulated a vision and plan, and we will pursue them vigorously to improve the well being of all Grenadians. With your support and commitment, we will surmount all challenges.
We are a resilient people who have demonstrated the courage and fortitude to overcome adversity,” Thomas stated.
Grenada News