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Grenada says it can't make upcoming debt payments

Grenada says it can't make upcoming debt payments

March 8th, 2013 in News

ST. GEORGE'S, Grenada (AP) - The government of Grenada is warning that it does not have the funds to make a scheduled bond payment on March 15 and will seek to restructure its debt.

A statement issued late Friday says that the economy of the southern Caribbean island has been severely affected by the global financial crisis and that its public finances are "currently unsustainable."

Grenada had to borrow to make a delayed $4.4 million payment on a September coupon for $193 million in bonds due in 2025. That prompted Standard & Poor's to downgrade Grenada's foreign currency credit rating.

Now, another payment is coming due on the 2025 bonds and the government says borrowing is not an option. Newly re-elected Prime Minister Keith Mitchell says the country needs a "fresh start" with creditors.