An IMF official is advising Grenada and other islands against subsidizing food and fuel prices for the entire populations.
Head of an IMF mission, who just concluded its second review of the Government’s economic programme, Ms. Nita Thacker says such a decision is not within Government’s reach at this time.
She says subsidies should be granted towards a targeted group of people that is in need like the poor and vulnerable.
However Minister Burke says Government is discussing a number of possibilities in which they can subsidize some of the costs.
He says a deadline has not been set for doing so but it is on their agenda.
One area the IMF found disapproval with is unpaid claims. Miss Thacker says it was higher than what they projected.
Minister Burke says the area remains a challenge for Government.
Meantime: The International Monetary Fund has commended Grenada for some of the structural impediments to private sector growth.
The world body says with growth in Grenada expected to be in the range of 1-1.5% in 2011 the authorities continue to face challenging circumstances.
They noted growth in some sectors like tourism and construction and expected greater output in the agriculture industry.
Head of the IMF mission in Grenada Miss Nita Thacker says when compared to other countries in the OECS Grenada’s growth is at midway meaning it’s not the fastest growing country nor is it the least.
Finance Minister Nazim Burke says the findings from the IMF report confirm Government’s commitment to strong economic management.