EY continues stakeholder consultations

GRAND CAYMAN, Cayman Islands – Ernst & Young (EY) resumed stakeholder consultations on Monday, 23 June 2014 as the second phase of their engagement process with the Public Services Rationalisation Project (PSRP). The latest round of stakeholder consultation provided an opportunity for stakeholders to review and confirm accuracy of EY’s compilation of financial and operational data and to discuss ideas and options for the way forward.

The first phase of the PSRP took place from 5 – 16 May 2014 involving an in-depth consultation process with public and private sector stakeholders and the acquisition and assembly of detailed financial and operational information from over 80 core-government entities, 25 statutory authorities, government companies, and numerous boards, committees and commissions. EY’s stakeholder consultation included Chief Officers, Heads of Departments and representatives of all core-government entities, statutory authorities and government companies, as well as the Chamber of Commerce, and courtesy visits with the Governor, Cabinet and elected officials, including opposition leaders.

On 16 May 2014, Premier Hon. Alden McLaughlin hosted a press conference to provide the opportunity to advise the public of the process and expectations of the project. The Premier was accompanied at the press conference by Deputy Governor, Hon. Franz Manderson and lead project team members from EY; Mr. Dan Scott, Regional Managing Partner, EY, Cayman Islands and Ms. Larni de Courtenay, Partner, Transaction Advisory Services, EY, Australia to answer any specific question on the project or process.

In reference to the depth of consultation and quality of information gathered thus far, Mr. Keiran Hutchison, Partner, EY Cayman and Cayman Islands Restructuring Specialist said, “I have been very pleased with the response in providing operational information, as well as the level of engagement by stakeholders as they share their professional insights and contribute to solutions for consideration with the EY assessment team.”.

The final recommendations and a road map for implementation is expected from EY in late July 2014. Mr. Manderson said, “I am pleased that the project is progressing according to schedule and look forward to receiving the final report”.

Photo Caption: Press Conference, 16 May 2014 (L-R) Ms. Larni de Courtenay, Partner, Transaction Advisory Services, EY, Australia; Mr. Dan Scott, Regional Managing Partner, EY, Cayman Islands; Premier Hon. Alden McLaughlin and Deputy Governor Hon. Franz Manderson, Cayman Islands Government

Grenada receives three-year US$21.7 million IMF credit facility

From Caribbean360

WASHINGTON D.C., United States, CMC – The International Monetary Fund (IMF) has approved a three-year US$21.7 million Extended Credit Facility (ECF) programme for Grenada aimed at improving the competitiveness and medium –term growth prospects of the island.

“The main objectives of the authorities’ ECF-supported economic programme are to improve competitiveness and medium-term growth prospects, restore fiscal and debt sustainability and strengthen financial stability.

“Reforms to raise Grenada’s growth prospects will focus on improving price competitiveness and the business environment,” the IMF said, adding that “to put public debt on a firm downward path, a comprehensive strategy consisting of fiscal consolidation, debt restructuring and fiscal structural reforms is being implemented”.

It said that planned reforms to the financial sector will ensure the system’s solvency and strengthen regulation and supervision and that the Grenada government led home grown programme “also envisions an increase in spending on social support programs, supported by minimum spending levels to protect those most vulnerable to the changes”

IMF deputy managing director, David Lipton, said Grenada has made important progress in addressing its fiscal crisis, following a protracted economic recession and a difficult social environment.

He said the authorities have taken wide-ranging measures to reduce the fiscal deficit and are negotiating in good faith with creditors to restructure the public debt.

“The challenges ahead remain significant, with a vulnerable growth outlook, high debt levels and financing needs, and a weakened financial system,” Lipton said, noting that Grenada’s “ambitious economic programme, supported by the Fund, focuses on restoring fiscal sustainability as an immediate priority, strengthening competitiveness and growth prospects, and securing financial stability.

“The success of the programme hinges critically on full implementation of the reforms by the authorities, broad social support, and assistance from Grenada’s development partners,” Lipton said, adding that a significant fiscal adjustment is needed to strengthen confidence and put public indebtedness on a sustainable path.

But he said achieving the targeted primary surplus requires a carefully calibrated combination of revenue increases and expenditure cuts. The authorities are committed to strengthening revenue mobilization and enhancing the social safety net to protect the most vulnerable.

“Consolidation efforts to reduce public debt to sustainable levels need to be complemented by a comprehensive debt restructuring. Upgrading the institutional framework for fiscal policy will be important to lock in the gains from these combined efforts.”

Lipton said that improving Grenada’s competitiveness and the employment outlook is key to growth and prosperity. He said structural reforms focus on improving the business environment, reducing electricity costs, and removing other obstacles to growth.

“The authorities are committed to participating in the comprehensive regional strategy to strengthen the financial system, coordinated by the Eastern Caribbean Central Bank. Accelerated efforts are necessary to ensure that banks can provide credit needed for the Grenadian economy.”

For more on this story go to: http://www.caribbean360.com/business/grenada-receives-three-year-us21-7-million-imf-credit-facility?utm_source=Caribbean360%20Newsletters&utm_campaign=43feb546b8-Vol_7_Issue_025_Business6_27_2014&utm_medium=email&utm_term=0_350247989a-43feb546b8-39393477