WASHINGTON,
July 5, 2011 — The World Bank Board of Directors
approved today a US$5 million zero-interest credit to help Grenada strengthen
its conditional cash transfer programme. As a result, the project will improve
coverage of poor households receiving cash transfers provided children go to school
and to health check-ups.
"Grenada's
safety net includes three targeted cash transfer initiatives which will be
consolidated into a comprehensive conditional cash transfer (CCT) programme,"
said Hon. Nazim Burke, Minister of Finance, Planning, Economy, Energy
and Cooperatives. "Grenada welcomes the World Bank’s support for
our reforms in the area of social protection having regard for its long track
record of designing effective CCT programmes that have achieved good results in
several countries."
Burke said
he expects that the combination of new financing and knowledge provided by the
World Bank will greatly help improve Grenada's CCT programme. Safety
Net Assistance Programme is consistent with our Government’s commitment to
social protection for the poor and vulnerable, good governance and sound
economic management, Burke concludes.
The
combined effects of lower levels of tourism revenues and transfers from abroad
including foreign direct investment and remittances — recent rise in prices for
food and fuel, and natural disasters —have reduced purchasing power among the
poor, and raised unemployment levels.
Grenada’s
available social safety net initiatives are not currently able to fully respond
to mitigate the impacts of these shocks or effectively promote productive
investments amongst the most vulnerable.
“New
financing will strengthen safety nets in order to prevent potential declines in
living standards while maintaining investments by providing financial support
to families most in need,” said Françoise Clottes, World Bank Director for
the Caribbean.
Specifically,
the Grenada Safety Net Advancement Project will finance a
plan to strengthen the new consolidated Conditional Cash Transfer
(CCT) Programme and the capacity of the Ministry of Social Development to
implement it.
It will
also:
(i) improve
coverage of poor households receiving cash transfers; and
(ii) improve
education outcomes of poor children and health monitoring of vulnerable
households.
Social policy officials in the OECS recommended in January 2010 a reform of Social Safety Net Programmes as Member Countries seek to design more efficient strategies to help the region's most vulnerable persons.
The two
US$5 million zero-interest credits from the World Bank’s International
Development Association (IDA) are repayable in 40 years, including a 10-year
grace period.
SOURCE: World Bank
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