A man smokes a cigarette as he passes in front of a sign advertising a retail location for rent as another man parks his motorcycle outside a clothing shop at central Nicosia, Monday, Dec. 17, 2012. Cyprus’ state coffers are depleted and government workers may go unpaid this month unless state-owned companies urgently lend the government some €250 million ($329 million) from their pension funds, the finance ministry’s top civil servant warned Monday. (AP Photo / Petros Karadjias)
Grenada says it can't make upcoming debt payments
Published: 01:43:38 AM, Sat 09 March 2013 UTC
ST. GEORGE'S, Grenada (AP) — The government of Grenada is warning that it does not have the funds to make a scheduled bond payment on March 15 and will seek to restructure its debt.
A statement issued late Friday says that the economy of the southern Caribbean island has been severely affected by the global financial crisis and that its public finances are "currently unsustainable."
Grenada had to borrow to make a delayed $4.4 million payment on a September coupon for $193 million in bonds due in 2025. That prompted Standard & Poor's to downgrade Grenada's foreign currency credit rating.
Now, another payment is coming due on the 2025 bonds and the government says borrowing is not an option. Newly re-elected Prime Minister Keith Mitchell says the country needs a "fresh start" with creditors.
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