Grenada to receive EC$21 million from European Commission as part of global crisis package

BRIDGETOWN, Barbados -- Grenada is to receive approximately EC$21 million (5.29M euro) in financial assistance from the European Commission, under the Commission’s vulnerability assistance scheme, which was adopted in August 2009 as a quick response to help eligible African, Caribbean and Pacific (ACP) countries deal with the affects of the global financial crisis.

Overall 13 ACP countries will receive assistance totalling 230 million euro (BBD$686 million). Haiti is the other Caribbean country to benefit and will receive 30 million euro.

Grenada will be the first Eastern Caribbean country to benefit from financial assistance under the mechanism. The funds which are non-reimbursable are to be used by Grenadian authorities at their discretion and convenience. The financing decision on Dominica's application will be presented in 2010.

Following the announcement of the package EU Commissioner for Development and Humanitarian Aid, Karel De Gucht said, "Developing countries were hit hard by the crisis due to their poor resilience to external shocks. This has left funding gaps in many ACP governments' budgets. The Vulnerability FLEX mechanism is the European Union's swift response to help countries maintain priority spending, thereby assisting the worst affected countries to reduce the social costs of the crisis".