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Hurricane Beryl Devastates Grenada, Government Defers Bond Payments
The recent passage of Hurricane Beryl on July 1 left significant damage and devastation on the island of Grenada, with an estimated loss of US$30 million.
The government of Grenada has decided to defer more than US$$17 million in total payments to government bondholders due to the hurricane’s devastation.
Government’s Announcement
The Dickon Mitchell administration has not yet made an official statement regarding the payment to bondholders. However, government’s press secretary, Neila Ettienne, confirmed that the government had triggered the hurricane clause in the bond in a WhatsApp message.
According to the notice, Grenada will not make the bond’s next scheduled payments due on November 12 and May 12 next year, which amount to just over $12.5 million combined. Instead, the money will be added to the US$112 million bond’s subsequent lump sum “principal” payments until the end of its term in 2030.
Q: How much did the hurricane damage estimate to cost?
A: The damage estimate is at US$30 million.
Q: How much is the government deferring in bond payments?
A: The government is deferring more than US$$17 million in total payments to government bondholders.
Q: What are the deferral dates for the bond payments?
A: The deferral dates are the next two consecutive payment dates: November 12 and May 12, 2025.
Q: When did Grenada introduce the hurricane clause in its bond agreements?
A: Grenada included the hurricane clause in its bond agreements in 2015.
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