Above: Grenada (CJ Photo)
By the Caribbean Journal staff
The Kuwait Fund has agreed to lift a suspension imposed on Grenada, the Grenadian government announced Thursday.
The agreement, reached following negotiations led by Works Minister Gregory Bowen, paves the way for work to begin next month.
The new agreement will feature a $1 million payment to the fund this week, with a payment schedule to cover $11 million in arrears. It will resume a $3 million payment every six months.
A condition of the agreement is that Grenada will pay monies owed to Caribbean Consolidated Contractors Limited on a schedule of $500,000 per month.
The Kuwait Fund for Arab Economic Development is the government of Kuwait’s international development agency.
The government said the fund suspended disbursements to Grenada in February 2012 after Grenada missed overdue payments on four loans.
Grenada is currently working to restructure its debt, Prime Minister Dr Keith Mitchell announced soon after taking office in February.
Grenada will continue to make payments to the fund under the new arrangement, Bowen said.
The agency is currently funding the construction of about 10 roads in areas such as St Andrew and Laura Estate, with work set to resume by next month.