By the Caribbean Journal staff

Grenada’s government says it has made the September coupon payment on its $193 million bond due in 2025.

The government had missed the payment earlier this month, leading to a downgrade of its foreign currency credit ratings by Standard & Poor’s.

According to the statement, Grenada issued a notice to noteholders on the bond through BNY Mellon on Sept. 12 indicating that it was experiencing “liquidity constraints,” but would make “every effort to pay the coupon by Oct. 15, 2012,” the final day of the grace period of the payment for the September coupon. “Despite the difficult circumstances, efforts to secure the necessary funding were successful,” it said.

Grenada had called S&P’s downgrade decision “premature,” pointing to the existence of the grace period.

“Grenada is a small country dealing with the effects of the challenges experienced by the global economy, including lower growth, lower tourism expenditure and lower foreign direct investments,” the government said in statement. “Nonetheless, it makes every effort to meet its obligations.”

Grenada also said it continued to implement what it called an “ambitious agenda of reforms, including improvement in the business and investment climate.”

The bond has a total value of $193 million.