(CMC) – The World Bank board has approved policy credit amounting to US$25 million to the island’s COVID-19 Crisis Response and Fiscal Management Development.
In a statement on Thursday, the World Bank said that this quick-disbursing financing will support the country’s efforts to respond to the COVID-19 crisis in the short term and enhance long-term sustainability and resilience.
“In recent years, the government of Grenada has made significant progress on economic reforms and fiscal consolidation. The COVID-19 crisis, however, has had a disproportionate socio-economic impact on highly tourism dependent small island economies, including Grenada,” said Tahseen Sayed, World Bank Country Director for the Caribbean.
“This operation aims to help Grenada weather the current crisis, support livelihoods and enhance resilience.”
The statement added that the COVID-19 pandemic has hit Grenada hard and although the number of COVID-19 cases has been relatively low, the economic contraction has been severe – based on this, the GDP is projected to contract by 12 percent in 2020.
This financing is expected to help the government strengthen the country’s health systems and protect livelihoods through financial assistance to the tourism sector, the agriculture sector, and small businesses. The operation also supports the country’s medium-long term structural reforms to improve fiscal management and debt transparency, enhance climate resilience, and strengthen public accountability.