Thursday, May 07, 2009, St. George’s: The Export – Import Bank of the Republic of China on Taiwan (ROC) has issued a formal demand notice to the Government of Grenada for the immediate re-payment of approximately US$25 million (EC$67.9M), borrowed by previous administrations by way of four (4) separate loans.

These loans were contracted by the Government in July 1990 (US$10 million); April 1997 (US$2 million); October 1997 (US$6 million); and January 2001 (US$10 million).
 

In a strongly worded letter to the Minister for Finance, the bank indicated that it intends to proceed vigorously to enforce the judgment against Grenada within the United States and throughout the world to recover the judgment obtained on March 16, 2007, following the failure of the then Government to service the loans.

Government is considering all its options as it seeks to resolve this matter. As a first step, Government will need to retain new legal consul in New York where the judgment was rendered to ensure Grenada’s interest is adequately represented.

The Government severed diplomatic ties with Taiwan in January 2005 and reestablished diplomatic relations with the People’s Republic of China.
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