Remittances in Grenada: A Decline in 2023

Remittances in Grenada

ST. GEORGE’S, Grenada, CMC—Grenada has recorded a decline in remittances from nationals abroad compared to the previous year, according to figures released by the Grenada Authority for the Regulations of Financial Institutions (GARFIN).

Remittances in 2023

It said that the amount of money remitted to Grenada through money service operators last year, compared to 2022, showed a reduction of EC$2.7 million (One EC dollar = US$0.37 cents).

“Based on data reported to GARFIN, total remittances flowing into Grenada in 2023 through the money transfer operators amounted to EC$ 57.5 million while total outflows amounted to EC$ 215.9 million. There was, therefore, a net inflow into the country of EC$158.4 million,” said GARFIN in its 2023 annual report.

Historical Remittances

The 2022 annual report showed that the remittance inflow was EC$161.1 million, while the outflow increased to EC$55.2 million. In 2021, the inflow was EC$176.5 million, while the outflow was EC$45.9 million.

With the inclusion of the remittances for 2023, GARFIN notes that for the seven years, 2017-23, the total amount of remittances flowing into Grenada was EC$946.8 million, with the year 2021 as the record-breaking year of EC$176.5 million. Since 2021, remittances have been reducing.

Money Transfer Operators

As of December 31, 2023, two companies were licensed to conduct money transfer activities in Grenada. They are licensed under the Money Services Businesses (MSB) Act and are subject to GARFIN’s regulatory procedures, including both offsite and onsite supervision, as are all other regulated entities. In 2023, supervisory procedures focused on enhanced offsite monitoring.

Grenada Development Bank

GARFIN notes that nonperforming loans in the Grenada Development Bank (GDB) showed signs of worsening last year and that the bank’s board of directors has suggested amending the existing legislation to expand the bank’s functions.

“As of December 31, 2023, the GDB held total assets amounting to EC$114.5 million with a total loan portfolio of EC$99.4 million and surplus of EC$ 1.2 million. Nonperforming loans stood at less than three percent but showed signs of worsening.

“On an overall basis, the Bank’s performance has been creditable and remains stable,” said GARFIN, whose 2023 report will likely be tabled in Parliament on Wednesday.

“The Bank submitted quarterly financial reports on prescribed reporting forms to facilitate this monitoring,” said the report, which points out that the Board of Directors halted the proposed amendment to the GDB Act.

“In addition, the draft (Amendment) Bill, which was previously completed by the Grenada Development Bank (GDB) to amend the GDB Act Cap 129, has been placed on hold by the Board of Directors while the Bank pursues other priorities for reorganizing,” said the report

Conclusion

Grenada has recorded a decline in remittances from nationals abroad compared to the previous year, according to figures released by the Grenada Authority for the Regulations of Financial Institutions (GARFIN). The total amount of money remitted to Grenada through money service operators in 2023 was EC$ 57.5 million, with a net inflow of EC$158.4 million.

Frequently Asked Questions

What is the current state of remittances in Grenada?
The current state of remittances in Grenada is a decline compared to the previous year, with a reduction of EC$2.7 million.
How many companies are licensed to conduct money transfer activities in Grenada?
As of December 31, 2023, two companies are licensed to conduct money transfer activities in Grenada.
What is the current state of the nonperforming loans in the Grenada Development Bank (GDB)?
Nonperforming loans in the GDB showed signs of worsening last year, with a surge to less than three percent.