by Linda Straker
- Bill provides for retroactive commencement of act on 17 April 2024
- CAF will be exempt from complying with several acts including Banking and Aliens (Land-Holding Regulation)
- Grenada’s subscription share price is US$4,998,000, covering 325 series C shares
Members of the Lower House of Parliament have approved the Minister of Finance’s decision for Grenada to join the Development Bank of Latin American and Caribbean known as CAF. This comes more than one year after the minister signed the agreement in Washington for Grenada to become a series C shareholder of the financial institution which provides financing for development projects to its members.
The “Agreement on Immunities, Exemption and Privileges between the Corporación Andina De Fomento and Grenada Bill 2025” did not have an aggressive or robust debate by members after it was presented by Philip Telesford, Leader of Government Business in the House during the 13 May session.
Philip explained that the bill will provide for the retroactive commencement of the act on 17 April 2024 and for all monies required to be paid by the Government of Grenada for the purpose of meeting its obligations under the Agreement on Immunities, Exemptions and Privileges and the Share Subscription Agreement to be charged on the Consolidated Fund.
The financial institution, which has its Caribbean regional headquarters in Trinidad and Tobago, will be exempt from complying with the
- Stamp Act, Chapter 309
- Income Tax Act, Chapter 149
- Property Tax Act, Chapter 257B
- Excise Tax Act, Chapter 94
- Value Added Tax Act, Chapter 333A
- Property Transfer Tax Act, Chapter 257C
- Banking Act, Act No. 20 of 2015
- Aliens (Land-Holding Regulation) Act, Chapter 13
“Notwithstanding subsection (1), the corporation and its officers and employees are hereby exempted from the payment of customs duties and other import-related charges, including customs service charges and environmental levies, to the extent provided under Article 5 of the Agreement on Immunities, Exemptions and Privileges,” said the legislation which was supported by Lennox Andrews, Economic and Planning Minister, and Finance Minister Dennis Cornwall.
Andrews said that before Grenada became a member of CAF, the country benefitted from a EC$50,000 grant which was used to provide financial support to the 2023 National Cultural and Creative Industries Conference “UNLEASH,” organised and coordinated by the Grenada Office of Creative Affairs.
Cornwall said that being a member of CAF will give Grenada the opportunity to borrow money from the institution at concessionary rates to assist in the country’s development. “We are likely to get dividends from that investment,” he added.
Grenada’s subscription share price is US$4,998,000 and it covers 325 series C shares. As a series C shareholder, this will allow Grenada to access the technical, financial and knowledge services offered by the bank to its member countries to improve the quality of life of citizens.
