[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-110244-en":3,"doc-seo-110244-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},110244,16904993612988,"Olivia Brown","https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd",8,"Research & Report","Grenada: Joint Bank-Fund Debt Sustainability Analysis - Debt Distress Assessment","Grenada remains in public debt distress because of unresolved arrears to official bilateral creditors of about US$37.6 million (3.1 percent of GDP) as of end-2022. Despite this, public debt is assessed as sustainable owing to favorable projected debt dynamics supported by substantial fiscal surpluses and a return to the fiscal rule in 2023. Public debt is expected to decline from 2020 levels following the pandemic shock, while external debt metrics marginally breach thresholds under the baseline. Debt reduction and arrears regularization are needed to sustain the trajectory and improve the risk rating, especially under stress tests.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nRobert R. Taliercio and Manuela Francisco (IDA) and Nigel Chalk and Jarkko Turunen (IMF)  \nPrepared by the staff of the International Development Association (IDA) and the International Monetary Fund (IMF) .  \n\n| GRENADA: JOINT BANK-FUND DEBT SUSTAINABILITY ANALYSIS1,2 |  |\n| --- | --- |\n| Risk of external debt distress | In debt distress |\n| Overall risk of debt distress | In debt distress |\n| Granularity in the risk rating | Sustainable |\n| Application of judgment | No |\n\nGrenada remains in public debt distress solely due to longstanding unresolved arrears to official bilateral creditors of about US$37 .6 million (3 .1 percent of GDP) as of end 2022. However, public debt is assessed as sustainable reflecting favorable projected debt dynamics from substantial fiscal surpluses that are supported by the return to the fiscal rule in 2023. Public debt rose to 71.4 percent of GDP in 2020 from 58.5 percent in 2019, due to the pandemic-induced collapse in GDP. As tourism and offshore education sectors, as well as construction activity rebound, public debt resumed its pre-pandemic downward trend in 2021 and reached an estimated 64.6 percent of GDP in 2022, with a further decline expected in 2023. Going forward, continued adherence to the fiscal responsibility framework and regularization of arrears will be needed to maintain a sustainable debt trajectory and upgrade the risk rating. Eventhough the public debt-to-GDP ratio does not breach its threshold under the baseline scenario, the present value of the external debt-to-GDP ratio and the external debt service-to-revenue ratio marginally breach the thresholds. Public debt should be further reduced to create a buffer that will allow Grenada to better weather the extensive external shocks and natural disasters, as underscored by the stress test scenarios.  \n1 The last published DSA for Grenada can be accessed here.  \n2 The composite index (CI), estimated at 2.96 and based on the April 2023 World Economic Outlook (WEO) and 2021 World Bank Country Policy and Institutional Assessment (CPIA) data, indicate a medium debt carrying capacity for Grenada.  \nPUBLIC DEBT COVERAGE  \n1. Public debt in this DSA is defined as the sum of central government debt (including arrears on principal and interest and overdue membership fees to international organizations) and government-guaranteed debt. It does not include non-guaranteed debt of state-owned enterprises (SOEs) and limited liability companies, notably PDV Grenada’s debt on account of the Petrocaribe arrangement. Based on the determination that the Government of Grenada is not responsible for the debt but only for its shares in the company, the Petrocaribe debt has not been included in the stock of central government debt.3 Until recently, gaps and time lags in the public enterprises’ reporting hampered the complete coverage of public sector debt. Substantial improvement in the comprehensiveness and timeliness of SOE debt data has been made recently, but an expansion of the perimeter to the public sector is still unfeasible because of the lack of consolidated debt data in the public sector. The authorities plan to amend the Fiscal Responsibility Act (FRA) in the second half of 2023, which will broaden the coverage of public debt to include debt of all state-owned enterprises (SOEs) and statutory bodies as well as public private partnership related liabilities (PPP) .  \n\n|  |\n| --- |\n| Subsectors of the public sector\u003Cbr>Central government\u003Cbr>State and local government\u003Cbr>Other elements in the general government\u003Cbr>o/w: Social security fund\u003Cbr>o/w: Extra budgetary funds (EBFs)\u003Cbr>Guarantees (to other entities in the public and private sector, including to SOEs)\u003Cbr>Central bank (borrowed on behalf of the government)\u003Cbr>Non-guaranteed SOE debt Check box 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 X\u003Cbr>X\u003Cbr>X\u003Cbr>X\u003Cbr>\u003Cbr> |\n|  |\n\n2. The contingent liability stress test accounts for the risk","cbCaijO6sYx0Lj3m","https://ap.wps.com/l/cbCaijO6sYx0Lj3m","pdf",776919,2,1,19,"English","en",105,"# Risk of Debt Distress\n## External debt distress status\n## Application of judgment\n# Public Debt Coverage\n## Definition of public debt in the analysis\n## Treatment of Petrocaribe-related debt\n## Expansion of coverage under FRA\n# Contingent Liabilities Stress Test\n## Non-guaranteed SOE debt and PPP shocks\n## Financial markets contingent liabilities\n## Policy caps and risk assumptions","[{\"question\":\"Why is Grenada assessed as being in public debt distress?\",\"answer\":\"Grenada remains in public debt distress due to longstanding unresolved arrears to official bilateral creditors of about US$37.6 million (3.1 percent of GDP) as of end-2022.\"},{\"question\":\"How can public debt be sustainable despite being in distress?\",\"answer\":\"Public debt is assessed as sustainable because projected debt dynamics are favorable, supported by substantial fiscal surpluses and the return to the fiscal rule in 2023.\"},{\"question\":\"Which thresholds are marginally breached and what does that imply?\",\"answer\":\"Under the baseline scenario, the present value of the external debt-to-GDP ratio and the external debt service-to-revenue ratio marginally breach thresholds, indicating heightened external risk even without a baseline threshold breach for the main public debt ratio.\"}]","Grenada: Joint Bank-Fund Debt Sustainability Analysis - Debt Distress Assessment | PDF",1784484528,48,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"grenada-joint-bank-fund-debt-sustainability-analysis-debt-distress-assessment","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,48,51],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":20},"https://docshare.wps.com/document/","Document",{"item":49,"name":12,"@type":44,"position":50},"https://docshare.wps.com/document/research-report/",3,{"item":52,"name":13,"@type":44,"position":53},"https://docshare.wps.com/document/grenada-joint-bank-fund-debt-sustainability-analysis-debt-distress-assessment/110244/",4,{"url":52,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-29","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"Why is Grenada assessed as being in public debt distress?","Question",{"text":76,"@type":77},"Grenada remains in public debt distress due to longstanding unresolved arrears to official bilateral creditors of about US$37.6 million (3.1 percent of GDP) as of end-2022.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"How can public debt be sustainable despite being in distress?",{"text":81,"@type":77},"Public debt is assessed as sustainable because projected debt dynamics are favorable, supported by substantial fiscal surpluses and the return to the fiscal rule in 2023.",{"name":83,"@type":74,"acceptedAnswer":84},"Which thresholds are marginally breached and what does that imply?",{"text":85,"@type":77},"Under the baseline scenario, the present value of the external debt-to-GDP ratio and the external debt service-to-revenue ratio marginally breach thresholds, indicating heightened external risk even without a baseline threshold breach for the main public debt ratio.","https://schema.org",{"og:url":52,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":52},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":53,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":22,"doc_module":4,"doc_module_name":47,"category_name":137,"show_sort_weight":107,"slug":138},"General","general"]