[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-111346-en":3,"doc-seo-111346-105":29,"detail-sidebar-cat-0-en-105":90},{"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":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},111346,4398048949847,"Eliana","https://ap-avatar.wpscdn.com/avatar/400002536579ef2da7f?_k=1778318612642679267",8,"Research & Report","Grenada - Joint Bank-Fund Debt Sustainability Analysis - Debt distress risk assessment","Grenada remains in public debt distress due to large, long-standing unresolved arrears to official bilateral creditors (about US$38 million, 2.9% of GDP as of end-2023). Despite near-term breaches, both external and overall public debt are assessed as sustainable because Grenada can meet current and future debt service obligations without debt relief or accumulating additional arrears. Baseline dynamics stay on a downward path supported by growth, limited financing needs, and lower debt service from concessional financing. The impact of Hurricane Beryl is modest, helped by high Citizenship-by-Investment revenues and disaster contingent instruments, including World Bank CAT-DDO financing.","Public Disclosure  \nPub lic Disc losure Authorized  \nApproved by:  \nManuela Francisco and Oscar Calvo-Gonzalez (IDA), and Koshy Mathai 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 on account of large and longstanding unresolved arrears to official bilateral creditors of about US$38 .0 million (2 .9 percent of GDP) as of end-2023. External and public debt, however, are assessed as sustainable, despite the near-term breaches, as capacity to meet its current and future debt service obligations without requiring debt relief or accumulating additional arrears remains available. Both remain firmly on a downward path in the baseline scenario, supported by economic growth, limited financing needs, and a declining debt service burden from greater reliance on concessional financing. The impact of Hurricane Beryl on debt sustainability is modest, as high Citizenship-by-Investment (CBI) revenue and the triggering of disaster contingent instruments, including concessional financing from the World Bank’s CAT-DDO, help cover Grenada’s post-disaster financing needs. While gross public debt can rise significantly and persistently in more than one shock scenario, large government deposits from the recent CBI revenue surge mitigate the risks. Upgrading Grenada’s risk rating would require a regularization of the arrears.  \n1 The last published DSA for Grenada can be accessed here.  \n2 The composite index (CI), estimated at 3.00 and based on the October 2024 World Economic Outlook (WEO) and 2024 World Bank Country Policy and Institutional Assessment (CPIA) data, indicate a medium debt carrying capacity for Grenada.  \n1. Public debt in this DSA is defined as the sum of central government debt (including external debt arrears), government-guaranteed debt, and the non-guaranteed debt of state-owned enterprises (SOEs) .3 The non-guaranteed debt is estimated to be 14.7 percent of GDP at end-2023, including notably 10.4 percent of GDP on account of the Petrocaribe arrangement.4 The complete coverage of public sector debt in the DSA is consistent with the 2023 Fiscal Resilience Act (FRA) .5 ,6 The authorities should continue with ongoing efforts to improve the comprehensiveness and timeliness of SOE debt data to improve the quality of debt statistics at the granular level.  \n\n|  |  |  |  |\n| --- | --- | --- | --- |\n|  |  | \u003Cbr>Subsectors of the public sector  Check box \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) Central bank (borrowed on behalf of the government)\u003Cbr>Non-guaranteed SOE debt\u003Cbr>XX\u003Cbr>XXX |  |\n|  | 1\u003Cbr>2\u003Cbr>3\u003Cbr>4\u003Cbr>5\u003Cbr>6\u003Cbr>7\u003Cbr>8 |  |  |\n|  |  |  |  |\n\n| 1 | The country's coverage of public debt The central, state, and local governments, central bank, government-guaranteed debt, non-guaranteed SOE debt |  |  |  |\n| --- | --- | --- | --- | --- |\n|  |  | Default | Used for the analysis | Reasons for deviations from the default settings |\n| 2\u003Cbr>3\u003Cbr>4\u003Cbr>5 | Other elements of the general government not captured in 1.\u003Cbr>SoE's debt (guaranteed and not guaranteed by the government) 1/\u003Cbr>PPP\u003Cbr>Financial market (the default value of 5 percent of GDP is the minimum value) | \u003Cbr>0 percent of GDP\u003Cbr>0 percent of GDP\u003Cbr>\u003Cbr>\u003Cbr>\u003Cbr>\u003Cbr>35 percent of PPP stock\u003Cbr>\u003Cbr>5 percent of GDP | 0\u003Cbr>0\u003Cbr>0.00\u003Cbr>5 | SoE debt is included in the baseline scenario.\u003Cbr>\u003Cbr>PPP capital stock is zero |\n|  | Total (2+3+4+5) (in percent of GDP) 5.0 |  |  |  |\n","cbCaif3LN2HkuZBo","https://ap.wps.com/l/cbCaif3LN2HkuZBo","pdf",785790,1,20,"English","en",105,"# Risk of external and overall debt distress\n## Arrears and debt distress status\n## Sustainability assessment and baseline drivers\n## Role of concessional financing and CAT-DDO instruments\n## Impact of Hurricane Beryl\n# Debt coverage and data granularity\n## Definition of public debt in the DSA\n## SOE debt coverage and data quality\n## Petrocaribe arrangement treatment and projection assumptions\n## Coverage consistency with Fiscal Resilience Act (FRA)","[{\"question\":\"Why does Grenada remain in public debt distress?\",\"answer\":\"Grenada remains in public debt distress because of large and longstanding unresolved arrears to official bilateral creditors, totaling about US$38 million (2.9% of GDP) as of end-2023.\"},{\"question\":\"How can debt be assessed as sustainable despite near-term breaches?\",\"answer\":\"External and public debt are assessed as sustainable because Grenada has the capacity to meet current and future debt service obligations without requiring debt relief or accumulating additional arrears.\"},{\"question\":\"What factors limit the impact of Hurricane Beryl on debt sustainability?\",\"answer\":\"The impact is assessed as modest because high Citizenship-by-Investment revenue and disaster-contingent instruments—including concessional financing from the World Bank’s CAT-DDO—help cover post-disaster financing needs.\"}]",1784489716,50,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"grenada-joint-bank-fund-debt-sustainability-analysis-debt-distress-risk-assessment","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/grenada-joint-bank-fund-debt-sustainability-analysis-debt-distress-risk-assessment/111346/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"Why does Grenada remain in public debt distress?","Question",{"text":74,"@type":75},"Grenada remains in public debt distress because of large and longstanding unresolved arrears to official bilateral creditors, totaling about US$38 million (2.9% of GDP) as of end-2023.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"How can debt be assessed as sustainable despite near-term breaches?",{"text":79,"@type":75},"External and public debt are assessed as sustainable because Grenada has the capacity to meet current and future debt service obligations without requiring debt relief or accumulating additional arrears.",{"name":81,"@type":72,"acceptedAnswer":82},"What factors limit the impact of Hurricane Beryl on debt sustainability?",{"text":83,"@type":75},"The impact is assessed as modest because high Citizenship-by-Investment revenue and disaster-contingent instruments—including concessional financing from the World Bank’s CAT-DDO—help cover post-disaster financing 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