Grenada Co Operative Bank - DOC - DOC

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Country: Grenada

Social and Economic Background of Grenada

There are several ways to measure the societal and income distributions for the population of
Grenada. According to the World Bank, Grenada had a population of 104.6 thousand people in
2003, 58.79% of whom were between the ages of 15 and 64. In 1998, Grenada had an
unemployment rate of 15.2%. There is no information about the proportion of Grenadians
living on less than US$1 or US$2 a day. Grenada’s GINI coefficient is not captured in the World
Bank database.

World Bank figures show that in 2003 Grenada registered a PPP adjusted GDP per capita of
US$7,959 in terms of current international dollars, a 9.2% increase from $7,290 in 2002.
According to the World Bank and the OECD, in 2003, Grenada received US$57.6 million in
foreign direct investment (FDI) net inflow and $12 million in foreign aid and development
assistance. The World Bank and the OECD estimated that in 2003, Grenada’s M2/GDP ratio
was 109.64%. Information regarding remittances to Grenada was unavailable.

The currency of Grenada is East Caribbean Dollar (EC$ or XCD). The East Caribbean Dollar has
been pegged to the US dollar at the rate of EC$2.70:US$1 since 1976, according to the
Worldpress.

Grenada has planned to participate in the World Bank and IMF’s Financial Sector Assessment
Program (FSAP).


Doing Business in Grenada

The World Bank’s country profiles have not included doing business information in Grenada
yet. According to the Government of Grenada, entrepreneurs are required to go through 8 steps
over the course of approximately 2 weeks to launch a business in Grenada, at a cost of
approximate US$2,260. The formation of a business is regulated under Cap. 281 of the
Registration of Business Act by the Supreme Court Registry.


Regulatory and Legal Environment of Grenada

According to the World Bank, in Grenada, the durations for eviction and check collection are
180 days and 128 days, respectively.


Microfinance Institutions (MFIs) and Commercial Banks’ Involvement in Grenada

The Eastern Caribbean Central Bank (ECCB) was established in October 1983. It is the Monetary
Authority for a group of eight island economies namely - Anguilla, Antigua and Barbuda,
Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent
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and the Grenadines. According to the ECCB, the financial system in Grenada is composed of 5
commercial banks, National Commercial Bank of Grenada, Grenada Co-operative Bank, Bank of
Nova Scotia, First Caribbean International Bank (Barbados) Ltd, and RBTT Bank of Grenada
Ltd. According to the World Bank, non-bank financial firms (e.g. insurance companies, finance
companies, etc.) can own the commercial banks. According to the World Council of Credit
Unions Inc. Grenada has 18 Credit Unions, with 26,309 clients.

Caribbean Microfinance Limited (Microfin), a subsidiary of Development Finance Limited
(DFL), is a regional finance institution providing loans and financial services to owners of
micro-enterprises in the Caribbean (include Grenada). According to International Year of
Microcredit 2005, Grenada is integrating all government-controlled microcredit finance
institutions under one central umbrella body.

National Committee Activities in Grenada

Grenada is integrating all government-controlled microcredit finance institutions under one
central umbrella body.
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Bibliography
Government of Grenada
      “Establishing a Business,” Aug. 27, 2005,
      <http://www.grenadaworld.com/IPA_Information.asp >

Organization of Economic Corporation and Development
      “Grenada,” Aug. 27, 2005,
      <http://www.oecd.org/dataoecd/18/10/1901219.gif>

United Nations Statistics Division
       ”Grenada”, Aug. 27, 2005,
       <http://unstats.un.org/unsd/cdb/cdb_country_prof_results.asp?crID=308&cpID=10>

World Bank Group
      Bank Regulation and Supervision, Grenada, Aug. 27, 2005,
      <http://www.worldbank.org/research/interest/2003_bank_survey/grenada.xls>

      FSAP participation as of August 31, 2002, Aug. 27, 2005,
      <http://www1.worldbank.org/finance/html/tbl-fsap_participate.html#tbl-fn2>

      Simeon Djankov, Rafael La Porta, et al, COURTS, Aug. 27, 2005,
      <http://rru.worldbank.org/Documents/DoingBusiness/ExploreTopics/EnforcingCont
      racts/lexpaper_aug_211.pdf>

      World Development Indicator Online Database, Aug. 27, 2005,
      <http://devdata.worldbank.org/dataonline/>

World Council of Credit Unions
      “Grenada,” Aug. 27, 2005,
      <https://www.woccu.org/intl_system/profile.php?ID=GRE>

Worldpress
      “Grenada,” Aug. 27, 2005,
      <http://www.worldpress.org/profiles/Grenada.cfm>