Grenada treasury empty - not enough funds to meet expenses

The Grenada treasury is empty and there is not enough money to pay its expenses.

This was disclosed by Finance Minister Nazim Burke in an interview with BBC Caribbean Report, which was reproduced by local and regional media including the Caribbean Media Corporation (CMC).

The six-week-old government led by Tillman Thomas is complaining of inheriting an empty treasury and is warning that the government may not be able to meet its monthly expenses, including paying salaries to the country's 3,000 public servants.

Burke said, "It’s an absolute mess. I do not wish to scare people, but I can tell you that we simply do not have monies." He said that the Government's monthly expenditure is around EC$56 million (US$20.7 million), but revenue has been estimated at EC$39 million (US$14.4)

The Minister told the BBC that the financial situation is challenging and said that the government would have to rely on overdraft facilities in order to meet its obligations.

He told journalists that the administration was hoping for assistance from friendly governments. He also hinted at the introduction of a programme to tighten government spending.

A new unit responsible for economic management and planning within the Ministry will also be created, the Minister disclosed.

The new government took over from Keith Mitchell's administration, which was in office for 13 years.

(Caribbean Net News).