Economics at your fingertips  

Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned

Michael Papaioannou, Saji Thomas, Tamon Asonuma () and Xin Li

No 2017/171, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; debt sustainability; foreign currency; interest rate; Sovereign Debt; Sovereign Defaults; Sovereign Debt Restructurings; Serial Debt Restructurings; Serial Defaults; Grenada; Disaster Clause; exchange offer; debt ratio; private sector; long-term debt; grace period; US$-denominated bond; bond exchange; bond restructuring; US$ bond; development partner; bond contract; CBI program; Debt restructuring; Bonds; Sovereign debt restructuring; Caribbean; Global (search for similar items in EconPapers)
Pages: 58
Date: 2017-07-24
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().

Page updated 2021-06-17
Handle: RePEc:imf:imfwpa:2017/171