ST. GEORGE’S, Grenada, CMC—The Chairman of the Citizenship by Funding (CBI) Unit, Richard Duncan, says Grenada has EC$54.6 million (One EC greenback = US$0.37 cents) in its contingency fund on the St. Kitts-based Japanese Caribbean Central Financial institution (ECCB).
The Fund displays the federal government’s deposit of 10 % of the month-to-month income influx earned via the Nationwide Transformation Fund of the Citizenship by Funding program.
Below the CBI program, overseas buyers are granted citizenship of the nation in return for making a considerable funding within the socio-economic improvement of Grenada.
Duncan stated that since 2023, the federal government has begun placing actual cash right into a contingency fund, which is a requirement of the Public Finance Administration Act.
“Beforehand, the legislation stated 40 % should go into that contingency fund, not a black cent went in…since 2014. From 2022, it was decreased to 10 %, and it has been lodged on the ECCB to the aggregated complete now of EC$54.6 million,” Duncan stated in an interview on the weekly The Bubb Report program on Sunday.
“It’s a buffer fund; even Hurricane Beryl was not a adequate disruption to attract down on that cash; it must be a significant financial shock,” Duncan stated.
In accordance with latest knowledge launched by the Funding Migration Company, the company accountable for administering the CBI program, the federal government’s income from the CBI program in 2024 was EC$472,981,142.
In accordance with the NTF regulation, a board of administrators manages the Fund. The cash in it may well meet the duty beneath regulation 9, which states, “In each monetary 12 months, the Board shall allocate the primary 24 million {dollars} of funds into the Fund to the Consolidated Fund for the only goal of cost of price range expenditure arrears.”
The Contingency fund may also be used to scale back price range expenditure arrears, meet the Fund’s goal of restructuring, repaying, or repurchasing debt, or present aid from a nationwide catastrophe.
The NTF rules additionally state that the Fund can’t be used to borrow or tackle any contingent legal responsibility within the type of a assure or in any other case.
“The Fund shall not be used to lend cash to the Authorities of Grenada, any State-Owned Enterprise or any Statutory Physique,” it notes.
