Debt in Grenada

Private debt in Grenada commonly includes bank or credit-union loans, mortgages, secured and unsecured credit, retail credit and guarantees. The Eastern Caribbean dollar, usually written as XCD or EC$, is the local currency used in the Eastern Caribbean Currency Union. Before signing a loan, compare the total repayment, interest, fees, collateral, guarantor obligations, payment schedule and consequences of a missed payment. Grenada has no verified universal consumer-debt interest or fee cap, so the signed contract and applicable law determine many costs. A borrower who expects difficulty should contact the lender or credit union early. The parties may agree to rescheduling, a temporary forbearance or a settlement, but these arrangements require the creditor's agreement. Grenada has no evidenced general statutory consumer debt plan or universal state debt-counselling service. The Consumer Affairs Office can receive banking and consumer complaints, investigate, mediate and provide guidance. A complaint does not itself cancel a debt or create a repayment plan, and the Consumer Affairs Tribunal handles consumer and supplier disputes rather than general insolvency. A missed contractual payment is a default. A loan may be treated as non-performing after at least 90 days in arrears. Lenders may pursue collection through the Civil Court. After a judgment, the court may allow attachment or garnishee proceedings against money or debts held by third parties and may permit seizure and sale of property. A secured creditor retains its rights over the security, and Grenada has no general automatic stay that stops enforcement before an insolvency proceeding begins. Credit reporting in Grenada is governed by the Credit Reporting Act 2017 and Regulations 2018. Licensed credit bureaus in the Eastern Caribbean Currency Union can receive monthly performance data from providers, including loan type and amount, outstanding loans, payment dates and history, balances, collateral and guarantees. A borrower can dispute or request correction of inaccurate information and can seek review and appeal to the High Court. If an investigation remains unresolved after 15 business days, a Statement of Dispute can be placed in the credit file. A corrected report must be supplied without charge. The sources do not establish a general retention period for negative credit information. The Bankruptcy and Insolvency Act 2016 provides formal procedures. A proposal is a structured arrangement submitted through a licensed Trustee, with written terms and a Statement of Affairs showing the debtor's financial position. Creditors and the court must approve it, and an approved proposal binds unsecured claims covered by it. Secured claims are affected only where the relevant class and rights are covered or consent is given. A default can lead to annulment and then a deemed Assignment. Bankruptcy can begin through a debtor's Assignment filed with the Supervisor under the Act or through a creditor's application for a Bankruptcy Order. The court appoints a licensed Trustee. Property generally passes under the Trustee's control, while secured rights remain. Proposals and bankruptcies are public records. A bankrupt must disclose financial information, cooperate concerning books and property, and avoid unreported new credit or business activity. A first-time individual may receive an automatic discharge after nine months if nobody successfully opposes it; other cases require a court discharge, and statutory exceptions under section 205 remain. Discharge can release qualifying debt but does not remove debts covered by those exceptions. Private loan fees, penalties and many other costs depend on the contract. Trustee and insolvency costs follow the prescribed tariff, while administration costs are paid from the estate. The applicant's costs for a Bankruptcy Order are generally paid from the estate, but the applicant may bear them if the estate is insufficient. No reliable uniform total cost or duration for a proposal or bankruptcy has been established. Government debt is a separate public-finance matter. The Ministry of Finance Debt Management Unit records government borrowing, prepares the annual borrowing plan and the Medium-Term Debt Management Strategy, and publishes debt statistics under the Public Debt Management Act 2015 and its 2023 amendment. Central government debt stood at EC$2,203.9 million, or 57.5% of GDP, at the end of 2024; reported public-sector debt was 67.3% of GDP in 2025, with a 60% debt-to-GDP target for 2035. Sovereign restructuring and arrears are handled through government and creditor processes and do not provide household debt relief.