The National Democratic Congress, as the government of Grenada, has
absolutely no intention of introducing a new structural adjustment
programme (SAP), the party's finance spokesman has affirmed.

Nazim Burke says that claims by the New National Party that the NDC is
planning a structural adjustment programme for the country is nothing
but election scare tactics.

"We must say first of all that we have no intention of introducing any
new structural adjustment programmes.  We must make that very clear
from the very outset,'' said Burke, an economist and lawyer.  "This
choice of language and attitude on the part of the New National Party
is intended  merely to scare the population away from voting for the
NDC.''

Burke, the Public Relations Officer of the NDC, and its candidate for
St. George North-East, said because of the "negative political
connotations'' of the term "structural adjustment programme,'' the
International Monetary Fund (IMF) and other international financial
institutions have changed the name SAP to Poverty Reduction and Growth
Facility (PRGF) programme.

"Countries that are in economic crises, of one form or another, sign
on to that programme, in the same way they would have signed on to the
structural adjustment programme,'' said Burke.  "So what we have is a
new name for an old programme.''

Burke said that two years ago the NNP government signed on to a PRGF
programme, and the NNP administration is refusing to admit to the
people that Grenada is in "the throes of a structural adjustment
programme.''

The only difference, he added, is that it is called today a Poverty
Reduction and Growth Facility programme.  "I think it is very
important that the public understands this,'' said Burke.

He explained that when the NNP signed on to the PRGF or new SAP in
2006, Grenada was required by the International Monetary Fund to
comply with several conditions laid out by the IMF as a prerequisite for
receiving certain cash advances to assist with fiscal relief.

"If you look at the 2006 budget statement that was given by then
Minister for Finance, Anthony Boatswain, in there are over 20
conditions that they must comply with,'' Burke said.  "Those included
the implementation and collection of the National Reconstruction Levy
as a condition that was imposed on them by the IMF.  It included the
Eastern Caribbean Central Bank being allowed to come and do onsite
inspection of banks, including Capital Bank.''

The IMF advanced US$2.6 million under a two-year US$16 million PRGF
programme.  However, the government failed to comply with most of the
IMF-stipulated PRGF conditions, said Burke.

"As a result,'' Burke said, "the IMF has decided to withdraw the
remaining US$13.4 million that the government would have been entitled
to, had it complied with those conditions that had been imposed as
part of the structural adjustment programme.''