Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned
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, which became unsustainable soon after external shocks hit the island economy. The two restructurings provided...
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| Format: | Article |
| Language: | English |
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University of Warsaw
2018-08-01
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| Series: | Journal of Banking and Financial Economics |
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| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1053&context=jbfe |
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| author | Tamon Asonuma Mike Xin Li Michael G. Papaioannou Saji Thomas Eriko Togo |
| author_facet | Tamon Asonuma Mike Xin Li Michael G. Papaioannou Saji Thomas Eriko Togo |
| author_sort | Tamon Asonuma |
| collection | DOAJ |
| description | 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, which became 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. |
| format | Article |
| id | doaj-art-53514f7b7313488d880ea01544001b3a |
| institution | Kabale University |
| issn | 2353-6845 |
| language | English |
| publishDate | 2018-08-01 |
| publisher | University of Warsaw |
| record_format | Article |
| series | Journal of Banking and Financial Economics |
| spelling | doaj-art-53514f7b7313488d880ea01544001b3a2025-01-03T00:36:49ZengUniversity of WarsawJournal of Banking and Financial Economics2353-68452018-08-01201826710510.7172/2353-6845.jbfe.2018.2.4Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons LearnedTamon Asonuma0Mike Xin Li 1Michael G. Papaioannou2Saji Thomas3Eriko Togo4International Monetary Fund, U.S.A.International Monetary FundInternational Monetary Fund, U.S.A.International Monetary Fund, USAInternational Monetary Fund, United StatesThis 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, which became 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.https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1053&context=jbfesovereign debtsovereign defaultssovereign debt restructuringsserial debt restructuringsserial defaultsgrenada |
| spellingShingle | Tamon Asonuma Mike Xin Li Michael G. Papaioannou Saji Thomas Eriko Togo Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned Journal of Banking and Financial Economics sovereign debt sovereign defaults sovereign debt restructurings serial debt restructurings serial defaults grenada |
| title | Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned |
| title_full | Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned |
| title_fullStr | Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned |
| title_full_unstemmed | Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned |
| title_short | Sovereign Debt Restructurings in Grenada: Causes, Processes, Outcomes, and Lessons Learned |
| title_sort | sovereign debt restructurings in grenada causes processes outcomes and lessons learned |
| topic | sovereign debt sovereign defaults sovereign debt restructurings serial debt restructurings serial defaults grenada |
| url | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1053&context=jbfe |
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