Mitchell Government averts third CDB downgrade

Friday, June 6, 2014 10:58 AM- George's, Grenada
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ST.GEORGE'S,GRENADA, June 6, 2014 -GIS: Quick action on the part of the now 16 month old Keith Mitchell administration prevented the Caribbean Development Bank from being downgraded a third time, it has been revealed.

Officials of the Barbados based CDB warned the Mitchell administration when it was returned to office in February last year, that if Grenada failed to make an outstanding five million dollar payment, the bank will again be downgraded.

Officials of the bank had confirmed that it was downgraded on two occasions on account of the previous National Democratic Congress administration of former Prime Minister Tillman Thomas not making any payments.

“The Caribbean Development Bank access loans from the international community and unlend to governments… so the higher the ratings of the bank is the cheaper the loans to the individual countries,” Prime Minister Mitchell explained to a town hall meeting in New York this week.

“So when they got downgraded twice because of Grenada it means that it caused the borrowing member countries in the Caribbean hundreds of scores of millions of dollars because they now have to borrow at much higher rates”.

Prime Minister Mitchell has applauded the government and people of Trinidad and Tobago for helping Grenada to make the payments and avert a third CDB downgrade.

“They showed me the books and said look next week if you don’t pay the 5 million dollars to the bank they are going to downgrade us a third time,” Dr. Mitchell recalled.

“So I called my good friend Kamla Persad-Bissessar and I said you have to help me because Jamaica will get hurt, Guyana, St. Vincent and the Grenadines will get hurt because of Grenada again. So she helped us and we were able to pay that and pay a number of countries so that’s why I will always remember our sisters and brothers in Trinidad and Tobago because they saved us and that is what Caribbean unity is all about”.




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