Friday, August 22, 2008, St. George's: An IMF team headed by Ms. Catherine Patillo, spent Thursday in Grenada on a familiarization mission with the new Government of Grenada. The team met with Prime Minister Prime Minister Tillman Thomas to get a view of his vision for Grenada and to recommit the IMF's commitment to Grenada. Following the meeting at the Botanical Gardens, the IMF team met with the Minister of Finance Hon. Nazim Burke, the Minister of State Hon. Michael Church, and other senior officials of the Ministry. The meeting provided the opportunity for the new minister to share government's plans for the development of the Grenadian economy and his approach to the management of the economy. During the 2 ½ hour meeting, the Minister expressed grave concern with the fiscal situation which the Government has inherited. In particular, he mentioned the excessive expenditure on poorly targeted social programmes and employment contracts awarded just before the elections. He explained that the Government is still taking stock of the present situation and will be making the relevant decisions based on their findings. Minister Burke spoke of his Government's commitment for stronger economic management and the successful completion of the Poverty Reduction and Growth Facility (PRGF) programme with the IMF. In this regard, he indicated that the Ministry of Finance is currently being restructured to establish an Office of Private Sector Development; a Debt Management Unit; a Waste Reduction Unit; and a Public Procurement Authority. These offices, he explained, will facilitate better management of Grenada's limited resources. The Minister also spoke of: * The necessity to reduce capital expenditure for 2008, given the tight fiscal situation; * The Government's plan to develop the energy sector as a main growth area in the economy; * Improving the business climate and developing a transparent predictable Investment Code; * Building a strong and clean financial system in Grenada; * The need for tax reform, including the implementation of the Value Added Tax (VAT) and; * The revitalization of the rural economy. The IMF team congratulated the Minister on his new portfolio and affirmed their commitment to working closely with the Government in providing technical assistance where requested. They thanked the minister for his detailed presentation and assured him of their full support. A comprehensive review mission by the IMF is scheduled for mid September. Press Release Ministry of Finance, Planning, Economy Inside Grenada News