By: Staff Writer
July 19, 2024
A Grenada Opposition spokesperson said that since the Dickon Mitchell National Democratic Congress (NDC) administration in 2023 had reduced the Citizenship by Investment (CBI) contingency fund percentage from 40 percent to 10 percent, will leave Grenada weaker in dealing with future natural disasters.
Emmalin Pierre, who represents the constituency for St Andrew South East and is currently the Public Relations Officer of the New National Party (NNP), told Caribbean Magazine Plus that the Mitchell led NDC had made a huge mistake by putting the CBI contingency fund input to 10 percent because in the face of Hurricane Beryl and the devastation it did to Carriacou, the resources in the contingency fund would be desperately needed now.
Pierre also said that the country should have in mind to prepare for more storms in the future and depleting the contingency fund would not be wise.
While the International Monetary Fund has said that the Mitchell administration putting the contingency fund at 10 percent in 2023 would “smooth government expenditures and provide resources for future generations,” Pierre said that when the fund was created it was done in mind that hurricanes, while not uncommon for Grenada-taking into consideration Hurricane Ivan in 2004- would become catastrophic if the country did not use its resources wisely.
Pierre also said: “We are recommending that they put it back to 40 percent. Because this disaster is going to take quite a huge sum. And, of course, you want to be able to respond one time, but you want to respond whenever to be able do that you must be able to sustain a certain amount in the fund at any time.”
It is too early to estimate the overall damage caused by Hurricane Beryl in Grenada, but officials may have an idea by the end of September. However, along with the funds saved in the contingency fund over the years, Grenada is also expecting to receive $118 million (EC) from the Caribbean Catastrophe Risk Insurance Facility (CCRIF).
Pierre also said: “There are two different funds. The first one is the CCRIF and it’s actually an insurance coverage for governments and major institutions. So, we would have signed up for that insurance coverage. And right now, historically, we would have received the largest ever payouts under the programme.
Addition to that, we would have had our utility companies also take out coverage, because we would have felt that that was necessary as well, to secure the infrastructure. And so, both our water and electricity companies would have received payouts under this fund. And it is first time in the history of the fun, that utility company actually drawing down from the fund, so those would have been visionary moves if you ask me.”
Grenada joined the CCRIF in 2007 under the Dr Keith Mitchell led NNP government and since Hurricane Ivan’s impact in 2004, it is bearing fruit for the country as it comes to grips with Hurricane Beryl’s devastation.