Financial Crime World

Grenada Must Tighten Oversight of Social Benefits and Phase Out Cooking Gas Subsidies

A recent report from the International Monetary Fund (IMF) has emphasized the need for Grenada to strengthen its oversight of social benefits and phase out cooking gas subsidies. The report highlights the importance of a more coherent and transparent framework for managing revenues from the Citizenship by Investment (CBI) program.

Recommendations for Strengthening Oversight

  • Transfer all CBI revenues into the National Transformation Fund (NTF) and implement an annual transfer mechanism from the NTF to the budget.
  • Implement a rules-based mechanism to ensure effective management of CBI revenues.
  • Enhance public investment management, including improvements to the procurement process and framework for public-private partnerships.

Improving Public Investment Management

  • Strengthen project planning and selection.
  • Improve capacity in project management, monitoring, and ex-post reviews of performance.
  • Ensure effective use of public funds through improved public investment management.

Addressing Financial Sector Vulnerabilities

  • Close monitoring of lending practices and asset quality to prevent potential risks to the financial system.
  • Strengthen the anti-money laundering and combating the financing of terrorism (AML/CFT) framework to protect correspondent banking relationships.

Structural Reforms for Growth and Resilience

  • Accelerate the transition to renewable energy sources.
  • Improve labor market efficiency.
  • Promote tourism as a key area for growth and resilience in Grenada.

Addressing Data Issues

  • Improve statistics to support evidence-based policymaking.

Response from the Government

“We appreciate the IMF’s feedback and will work towards implementing these recommendations,” said a government spokesperson. “We recognize the importance of transparency and accountability in managing public funds and ensuring financial stability.”

Conclusion

The IMF mission team commends the Grenadian authorities for their efforts to address these issues and looks forward to continued cooperation to support the country’s economic development.

Contact Information:

Meera Louis IMF Communications Department Phone: +1 202 623-7100 Email: MEDIA@IMF.org Twitter: @IMFSpokesperson