Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned
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Summary:
This paper documents the two debt restructurings that Grenada undertook in 2004–06 and 2013–15.Both restructurings emerged as a consequence of weak fiscal and debt situations, whichbecame unsustainable soon after external shocks hit the island economy. The two restructurings provided liquidity relief, with the second one involving a principal haircut. However, the first restructuring was not able to secure long-term debt sustainability. Grenada’s restructuring experience shows the importance of (1) establishing appropriate debt restructuring objectives; (2) committing to policy reforms and maintaining ownership of the restructuring goals; and (3) engaging closely and having clear communications with creditors.
Series:
Working Paper No. 2017/171
Subject:
Asset and liability management Bonds Debt restructuring Debt service Debt sustainability External debt Financial institutions Public debt Sovereign debt restructuring
English
Publication Date:
July 24, 2017
ISBN/ISSN:
9781484311035/1018-5941
Stock No:
WPIEA2017171
Pages:
58
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