Ret. No. MINISTRY OF FINANCE, replying the’ above PLANNING, ECONOMIC Number and dots DEVELOPMENT AND letter should be quoted. PHYSICAL DEVELOPMENT FINANCIAL COMPLEX, ‘THE CARENAGE, ST. GEORGE'S, GRENADA, Wi. May 4, 2020 Mr. Christopher Olsen Vice President Client Service Manager The Bank of New York Mellon 101 Barclay Street, Floor 7E New York, NY 10286 Request for moratorium on debt servicing re: Grenada’s Response to COVID 19 Dear Mr. Olsen, The Government of Grenada hereby seeks an 8-month moratorium on its obligations to the holders of its 2030 bonds, as per the terms of the COVID-19 G-20 initiative. Grenada is secking similar debt relief from other creditors. Payments (USD) within this period (less CBI payment) approximate the following Interest | $6,455,563 Principal $8,983,312 [Total $15,438,875 As you are undoubtedly aware, our world is grappling with the unprecedented impact of the COVID 19 pandemic with both devastating mortality and socio-economic impacts. Grenada has been spared the impact of high levels of transmission, with twenty (20) confirmed cases testing positive and zero deaths to date. That said, this containment to date is largely attributed to our early actions to close schools (March 16"), impose a state of emergency (March 30"), subsequent closure of borders, business places, and the incredible efforts of our health care professionals and security forces. ‘Tel: (473) 440-2731-44) Facsimile: (473) 440-4115Our initial projections show a severe contraction of at least 10 percent in our Gross Domestic Product, an increase in the Debt to GDP ratio, sharp contractions in revenue collection (at least 50 percent). Very importantly, our Tourism sector is now closed. Tourism accounts for approximately 60 percent of our foreign exchange and thousands of jobs. Furthermore, St. George’s University which accounts for about 20 percent of the Grenadian economy has moved its course offerings fully online and many of its students, which number in the thousands, have now returned to their countries of origin. We currently project some modest recovery in 2021 but this is contingent on the recovery of our Tourism and other key sectors, which remains a huge unknown, given the significant uncertainty about the length of this pandemic not merely in Grenada but in our key source markets which are the USA and the UK. This current situation comes against the backdrop of Grenada’ stellar fiscal management and performance over the last five years, through maintaining fiscal discipline, sound fiscal and economic policies and practices, which resulted in consistent primary balances and a steady decline in Grenada’s Debt to GDP to 55.8% by December 2019. Government prioritized responses, therefore, must seek to mitigate the inevitable economic and social impacts of the COVID-19 pandemic and subsequent responses to it. The International Monetary Fund and the World Bank Group successfully approached the G-20 on a COVID-19 initiative. The G-20 has proposed a suspension of debt service payments (principal and interest) of all IDA countries and all least developed countries as. defined by the United Nations, that are current on any debt service to the International Monetary Fund (IMF) and the World Bank. The suspension would take place from May 1 to December 31, 2020. In light of the foregoing, Grenada hereby seeks the aforementioned debt service suspension as per the G-20 initiative terms. Once approved, Grenada will use this liquidity to support economic recovery including support for households and businesses to help minimize permanent damage to Grenada’s economy. In this regard, we have established a Task Force for rebuilding the Grenadian economy with key stakeholders across the business, political, and governmental spectrum, Our mindset is to seize opportunities to build a stronger, more diversified and resilient economy.We thank you for conveying our request to the bondholders and look forward to a favorable response at the earliest opportunity and we note that the next payment date is May 12, and ask that a suitable extension be granted as we discuss this matter. Please accept, Mr. Olsen, assurances of my highest esteem. AREA RR Dr. The Right. Hon. Keith C. Mitchell PRIME MINISTER AND MINISTER FOR FINANCE