IMF tells Grenada to think twice about China loan for hotel

THE Grenada government has been strongly advised to rethink plans to seek a US$107 million loan from China to finance the construction of a 100-room luxury hotel in the island.

The International Monetary Fund (IMF) has told the country that a loan of that magnitude, which translates into 17 per cent of the country’s GDP, could jeopardise debt sustainability.

The lending agency offered that advice in its ‘Staff Report for the 2009 Article IV Consultation, Fourth Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility’.

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3 Comments

  1. January 30, 2010

    SVG has the balls….let us see what to come! that is really a gamble…i would go for a 50 rooms at $50,000,000.00 hence my GNP will contribute to 8.5%

  2. only
    January 30, 2010

    To get into hock with either the IMF, EU or China, is to sell out your country. Tourism is on the downslide due to the worldwide economy. If you don’t think that they will come collecting in the future, think again. They most definitely want their money back or they will take your country instead.

  3. Skeptic
    January 30, 2010

    Tell the IMF thanks for the advice, but we will take a raincheck. Any Island in this region worth their salt will realize that it would need a few star studded properties in order to acquire any sifnificant revenue from tourism. I trust the Governemt of the Commonwealth of Dominica, the ministry of tourism and the DDA will fast track plans for such properties. Layou River is bidding its time to contribute to nation building. Roseau also needs a 100 -150 room high end property , possible an international brand, which will help with the country marketing, (When you here of the Atlantis, the Bahamas comes to mind)

    It is time we take the bull by the horn, we have a lot of potential here, the stadium needs some serious assitance in room stock if it is to also play its part in nation building. I think we are well aware by now the importance of air and sea portsaccess to our tourim intustry no need to be- labour this point.

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