NE WS L E ER
FOUNDED 17TH AUGUST 1973
fPr The.Week Ending 12th. March.1983
11th Year of Publication - -283rd Issue
Volume 11 Number 4
PRG TAKES REAGAN SERIOUSLY
The Peoples Revolutionary Government (PRG) has reacted
strongly to statements reported to have been made by United
States President Ronald Reagan on March 10th as he address-
ed a group of U.S. manufacturers in Washington, D C.
Acting Prime Minister and Minister of Finance Bernard Coard,
speaking on March 12th on the State-owned Radio Free Grenada,
said this is'not the first tm, ie rsid eri Reagan has attacked
Grenada but he felt the present attack is extremely -erious.
"Ronald Reagan stated, among other things, that Grenada is a
threat to the national security of the United States", he
said. "This is an extrzeely serious and grave statement
and it is one which countries, historically,,do not make un-
less they are about to go to.war with :such countries,"
Mr Coard said these:statements by the U.S.President are no
longer an attack on the PRG's domestic and foreign policies,
or on the fact that the PRG does not kow-tow to Washington
and that the American Administration and that the American
Administration is hostile to What the PRG is trying to do.
What Mr Reagan is doing, he said, is stating to the American
public and to the world that the tiny nation of Grenada with
a population of 110 thousand "proud, freedom-loving hard-
working" people is a threat to the United States national
"Ronald Reagan, who has enough satellites and planes spying
over our skies every day, who has enough spies operating an
Produced & Printed tby Alister & Cynthia Hughes
P Box a 5, St,Georges, Grenada, Westindies
Page 2 THE GRENADA NEWSLETTER Week Ending 12.3.83
the ground in our country in a situation where people can come here as
tourists or as visitors and go everywhere they wish by bus, by taxi,
by foot, knoqs full well the true situation in Grenada", he said.
Mr Coard said that, in spite of this, Mr Reagan was "bold-faced"
enough to state to the American nation and the world that Grenada
has Cuban and Russian naval bases and other advanced military in-
ctallations, and he said that, in a small, well-populated island like
Grenada, it is not possible to. hide anything of that nature.
"So we must understand", he said, "that Ronald Reagan knows the truth
and that what We are seeing is not just a pack of lies but a statement
made in the conscious knowledge that what he is peddling is a pack of
The Acting Prime Minister .(Prime Minister Maurice Bishop was at the
Non-Aligned Conference in India) called on Grenadians to see
Mr Reagan's statement as extremely serious and provocative and to
redouble their vigilance in defence of the island and the revo-
CARDR: U.S.ADMINISTRATION "GETTING DESPERATE"
Itemising progress iA-Gienada since the revolution of March 13th
1979, and referring to the United States Administration, Minister of
Finance Bernard Coard has said that 'in the context of this tremend-
ous progress, these people are getting desperate."
Mr Coard's comment was made on March 12th'at the opening of the
"Sandino" prefabricated concrete and tile factory (a.gift from Cuba),
and was in response to reported charges made on March 10th by
President Ronald Reagan that Cuban and Russian naval bases have been
built in Grenada and that the island has other advanced military
"We have to note", Mr.Coard said, "that after years of destabilisat '.
ion, after years of telling people lies, the people of the world, in-
cluding the people of the United States, have begun to come in larger
and larger numbers to visit our country and see for themselves."
The Minister said the timing of Mr Reagan's attack on Grenada must be
seen as very significant because, in January of this year, 149 yachts
from all over the world visited Grenada, for the last several weeks,
every room in every hotel in Grenada has been filled and, compared
with last year, there has been an increase in the number of cruise
liners visiting the island.
What Mr Reagan is afraid of is not Cuban.military aid, Mr Coard said,
but his fear is of assistance in health, education, housing and in
THE GRENAB& NBWSLBTEB '
building the international airport which is being given to'Grenada
"If the rest of the English speaking Caribbean is going backwards
and catching their arse (sic) while Grenada moves forward econom-
ically and politically", he said, "we must understand that imperial-
ism is not only afraid,about the question of the Grenada revolution
becoming more and more .consolidated inside Grenada. What fright--
ens them even more is that the masses of the Caribbean will say ..
'If Grenada can grow by 5.5% at a time of economic crisis in thd
capitalist world, why cant we ?' ".
WHITEMAN STATES PRINCIPLES OF FOREIGN POLICY
Appearing on February 27th on the radio/TV programme "Perspective
83", Minister of Foreign Affairs Unison Whiteman gave Several prin-
ciples along which, he said, the foreign policy of the Peoples Revo-
lutionary Government is based.
"Good neighbourliness" is the first principle and in this connection
Grenada "systematically stretches out a hand of friendship and co-
operation to all countries of the region." This includes "prac-
tical cooperation", he said, regardless of political or ideological
Mr Whiteman next listed the principle of "anti-imperialism" which,
he said, is a rejection of a system in which a handful of trans-
nationals and large Companies exploit the'resources of other count-
ries, particularly Third World countries.
"These large Companies are generally assisted by their Governments
in their exploitation", he said, "and we totally reject these im-
."Anti-colonialism" is the third principle, he said. The PRG is
opposed to the situation where one Government and people try to
dominate another people.
"The biggest colony left in the world today", he said, "is Puerto
Rico which represents more than half the population of colonised
people, and it is for this reason that we take a very strong po-
sition in solidarity with the struggle of the people of Puerto Ricu
to be independent."
The PRG also pursues a foreign policy based on a quest for world
peace and a New World Economic Order (NWEO), he said.
He said that, 200 years ago, the standards of living of Western
Europe and Africa were, generally, the same but, by the second half
Week Ending 12.5.83
Page 4 THE GRENADA NI B LI TER Week Ending 12.3.83
of the last century, a great gap had developed and there is now a gulf,
and the PRG is firmly committed to supporting the struggle for a NWEO.
"Perspective 83" is a joint programme of the State-owned Radio Free
Grenada (RFG) and Television Free Grenada (TFG) in which members of the
PRG Cabinet face questions from the Press.
Questioning Mr Whiteman were representatives from the "New Jewel", the
official organ of Prime Minister Bishop's New Jewel Mbvetent, the
Government Information Service, RFG and Interpress Services.
WHITEMAN EXPLAINS PRG'S AFGANISTAN STAND
"The question of Afganistan did not begin in December 1979 which
many people tend to pretend. It began as early as April 1978, and
in April 1978 there was a revolution in Afganistan."
iForeign Minister Unison Whiteman made this statement on February 27th
as he appeared on the radio/TV programme "Perspective 83. and in
reply to a request for his response to the charge that Grenada was
.he only country to vote with the Soviet Block against a United
Nations resolution condemning theballeged Soviet invasion of Af-
Ir Whiteman said the question of Grenada's stand on the Afganistan
question has never been put correctly. What should be put, he
-aid, is 'what should a country's attitude be to a fellow revo-
lution that is threatened ? Does a revolution that is threatened
have a right to receive assistance to help it defend itself ?'
An old feudal system in Afganistan was overthrown in April 1978,
he said, and a new revolutionary Government started to bring
benefits and opportunities to the people, and that was important
to the Peoples Revolutionary Government (PRG).
The Minister said that, in December 1979, the PRG was told by the
Afganistan Ambassador to the United Nations that his country was
about to be attacked by 60,000 mercenaries and counter revolution-
aries based in Pakistan.
"In that context", Mr Whiteman said, "we feel that if a revolution
feels that it is threatened, and is unable' to defend itself on its
own resources, then it has the right to receive whatever help is
Week EpdiMng 2.3.83 -TUH -G.gADAp NSWSLETTSR Page 5
.. PRG'S FOREIGN POLICY SHIFTS
Since the revolution of March 1979, Grenada's foreign policy has
moved away from traditionall l fr'iendS -in "he Western world': and to!-
wards the Soviet Block because, like the Peoples Revolutionary
Government (PRG), that block suppCpts the 4-ust struggles" taking
place in such areas as Southern Africa and El Salvador.
Foreign Minister UnXfn WHitemarn said .this :0P FeObuary 27th as he
faced.questions .fyom reporters on the radio/TV programme "Perspective
"Based on their own analysis", he said, i'the Soviet world -aio sup-
ports these just, strpggl s and it is no accident that the capitalist
world, the United States for instance, does not support some of these
struggles because, obviously, they have a vested interest in main-
taining South Africa the way it is going'K.
G rer-di 4'_I'T i ..
VILLAS TRIBUNALS FOR PR(ADIAW 'RCENY
Grenridas 'farmers have" identified praedial larcenr as their most im-
portant problem and the Peoples Revolutionary Government (PRG) is to
take. a unique step to combat it. .'
Appearing on "March 6th on the; raidio/TV programme "Perspective 83",
Minister of Agriculture George' Louisop said'this finding had come out
of the Agricultural Census taken biy hiim Ministry, and a law is now
being drafted for the appointment of "Village Tribunals" to act as
Courts in which cases .of .praedial aiirce y wi l b1 .rfied.
"Those Tribunals will be headed by a senior Police Officer or some
senior person as President of the Tribunal", Mr Louison said, "and
will comprise up to 7 persons coming from mass ?rganisations,
farmers organistt ioins women s organisations and senior citizens"
The President and three members will comprise a "sitting", Mr-Louison
said, and the Tribunal will have the power to impose "limited forms
of.penalty",; for example. fines or, sentencing guilty persons "to work
on the:-lands or on ,the roads".
The Minister said that, within a mouth, the law will be ready for
circulation to the public, and especially to farmers, so that it may
be discussed pending the final drafting.
"Perspective 83" is a weekly programme sponsoredd by Radio Free Gre-
nada (RFG), Television Free Grenada aid the Government Information
Service (GIS),, in' which~n embers of Cabinet .of the Peoples. Revolution-
ary Government answer -questions, put by reporters.
THE GRENADA NEWSLETTER
Questioning Mr Louison were reporters from "New Jewel", the official
organ of Prime.Minister Maurice Bishop's New Jewel Movement, RFG, GIS,
the Latin American Press Agency and Interpress Third World News
CHILD CARE & PROTECTION UNIT SOON
Minister of Education Jacqueline Cteft has disclosed that a "Child
Care & Protection Unit" is to be established shortly to ensure that
all school-age children attend school.
According to the State-owned Radio Free Grenada, Miss Creft said
this on March 5th as she officially declared open the Bonair
Government school, the first primary school to be opened in Grenada
since the revolution of 13th March 1979.
eield officers will be appointed to find out how many school-age
children are not attending school, the Minister said, and they will
also ascertain what problems are causing their absence. These
officers will be entrusted with finding solutions to these problems,
The Minister said that, in some cases, about 40% of enrolled child-
ren are not attending school in spite of the fact that schooling is
free and Government gives assistance with school books and uniforms.
LIVESTOCK & GENERIC CENTRE OPENED
A livestock and generic centre was opened on March 6th at Mount Hart-
ran on the island's south coast by Minister of Industrial Development
Named after one of Grenada's National Heroes, Julian Fedon, this
centre will produce meat and vegetables and is expected to be in full
production by next year.
Fedon, a coloured French estate.owner, led an unsuccessful revolution
against the British in 1775. According to Radio Free Grenada,
Mr Radix said the name of the centre symbolises a new beginning be-
cause, "after he had suffered the indignity of slavery, he (Fedon)
started the course for the liberation of Grenada in 1795".
The centre at present has 70 pure bred pigs, 175 Black-belly sheep
and 34 pedigree goats.
Contributions made towards establishment of the centre have come
from the local flour mill, Caribbean Agro-Industries Ltd, EC$10,000,
while a Canadian based "solidarity group" donated US$30,000 in
equipment. When the centre is completed in 1984, the project is
Week Sndina 12.3.83
THE GRENADA NEWSLETTER
expected to cost an estimated BEC$850,000. Annual production is
expected to be 15,000 high quality pigs and 500 Black-belly sheep
MINISTERS LEAVE FOR NON-ALIGNED MEETING
Minister of Agriculture George Louison and Minister of HeAlth Chris
DeRiggs left Grenada late in February for New Delhi, India, to att-
end the Non-Aligned Movement meeting which opened there on March
The Grenada Government Information Service said they would be joined
shortly by Foreign Minister Unison Whiteman and Grenada's Ambassa-
dors to the United Nations, Havana, London, Moscow and Brussels.
Informed sources told NEWSLETTER that Prime Minister, Maurice Bishop
would leave the island on March 4th by a chartered aircraft to con-
nect in Trinidad with.a BWIA flight which would take him to London
en route to New Delhi, India, to attend the Non-Aligned meeting.
The sources said Mr Bishop would return to Grenada on March 13th in
time for the celebration of the fourth anniversary of the March 13th
GRENADIAN FOR SCHOOL'S BOARD OF TRUSTEES
Grenada-born Member of the British House of Lords, Lord David Pitt,
70, has accepted an appointment to the Board of Academic Trustees of
the St Georges University School of Medicine, an "off-shore"
American owned medical school which has been in operation here since
SThis was disclosed on March 4th to NEWSLETTER by Vice-Chancellor of
the School, Dr Geoffrey Bourne who said Lord Pitt is expected to
visit the School in May next.
Lord Pitt won the Government granted "Island Scholarship" in 1932
and studied at Edinburgh University, Scotland, qualifying as a
medical doctor before returning to Grenada to serve at the General
He later migrated to Trinidad where he had a practice and where he
entered the field of politics, being one of the founders of the
West Indian National Party.
In 1952, Lord Pitt took up residence.in London and became active in
local government politics-under the banner of the British Labour
- Week Ending 12.3.83
THE GRENADA NEWSkTTER
Party, being elected, in 1962, to the post of Chairman of the Greater
Lord Pitt was given a Life Peerage in 1975 with the title, Lord David
Pitt of Hampstead, Grenada and Hampstead, London -- Hampstead,
Grenada being the place of his birth.
PRESBYTERIANS IN GRENADA GO INDEPENDENT
After more than a century and a half of witness, the Presbyterian
Church in Grenada has become an autonomous body.
Presbyterianism was the last of the "main line" Churches to come
to this island of 120 square miles which, today, has a population of
about 100,000. The first was Roman Catholicism which was
brought by the French as the original colonisers of the island in
By the Treaty of Versailles in 1783, the British gained permanent
possession of Grenada, introducing the Anglican faith, and .Methodism
followed in 1790. It was not until 1830 that the Presbyterians
or Church of Scotland had a beginning.
In that year, a small group of Scottish residents decided to build
a kirk. The Scottish Church, not being part of the "Established
Church" (as the Anglican Church was), there were no public funds
available for this purpose, but a subscription list headed by the
Scottish-born Governor, Major-General Sir James Campbell, soon rais-
ed the required sum.
Application was made to Government for a suitable site on which to
build and "the old Court House lot" near to Fort George in the
Capital, St Georges, was granted by the Legislature. On Novem-
ber 30th 1831, St Andrew*s Day, Governor Campbell laid the corner-
stone, depositing in it copies of the island's newspapers, gold
and silver coins and Coronation Medals od King William IV who had
succeeded to the British throne just the year before on the death
of his brother George IV.
The completed building was consecrated as St Andrew's Kirk on July
14th 1833. The congregation then numbered only 20 and the Church
of Scotland in the United Kingdom accepted responsibility for
financial support and for the posting of Ministers to the island.
i-enty-five years later, the congregation had grown considerably
'nd St Andrew's Kirk decided on an out-reach mission to the more
;han 5,000 East Indians who had been brought to the island as
indentured labourers following the abolition of slavery in 1838.
Week Ending 12.3.83
THE GRENADA NEWSLETTER
A successful petition was made to the General Assembly of the Church
of Scotland for assistance to provide these workers with Christian
instruction and an on-going ministry to the East Indian population
(which now numbers some 3% of the total population) is responsible
for the fact that more than half of the estimated 800 Presbyterians
in Grenada are of East indian origin.
Church of Scotland support lasted until after World War II, In
1946, that Church proposed that St Andrew's Kirk merge wit) the
Methodist Church in Grenada but Presbyterians in Grenada strongly
opposed this and an approach for assistance was made to the Presby-
terian Church in Trinidad.
The Trinidad Church had (and still has) close links with the United
Church of Canada (UCC) and many Ministers who served Grenada have
been drawn from that source. In 1969, however, following a study
of the Presbyterian Churches in Trinidad and in Grenada, UCC, in an
effort to promote an indigenous clergy and Church in the islands,
stopped supplying Ministers, and this action aggravated the problems
of St Andrew's Kirk.
During a period of some 15- years,: Grenada was often without the
services of an ordained Presbyterian Minister. The congregation
dwindled, a sense of frustration became evident and there were dire
predictions that the Presbyterian faith in Grenada would soon be ex-
Recently, St Andrew's Kirk was able to secure, for a period of one
year only, the services of the Reverend Ed Prinselaar,55. Reverend
Prinselaar, who hails from Thunder Bay, Ontario, Canada, and who is
a member of UCC, arrived in Grenada with his wife, Wilhelmina, last
September, and his presence has worked a transformation.
"It was obvious that the situation demanded early and radical
action, Reverend Prinselaar told NEWSLETTER. "We had to go to
the root'of the problem and find a solution."
The "root of the problem" turned out to be inadequate communication
between St Andrew's Kirk and the Presbyterian Church in Trinidad.
This appears to have come about, not through the fault of anyone,
but because of a failure to comprehend and cater to the needs of the
Grenada Church in a developing Caribbean situation.
On February 24th last, a delegation from the Presbyterian Church in
Grenada attended in Trinidad a meeting of the Synod of the Presby-
terian Church of Trinidad and Grenada. There, it was proposed
there should be a severing of ties, the Presbyterians in Grenada be-
- continued -
Week Ending 12.3.83
THE GRENADA NEWSLETTER
There was no opposition to this and the Synod unanimously passed a
"The Presbytery of Grenada will be the highest Court of
the Presbyterian Churches of Grenada."
Since the passage of that Resolution, St Andrew's Kirk and the three
Mission Churches in the country districts of the island, have wasted
o time. Three days after the Synod meeting, the new Presbytery
got together and elected an executive, and there are signs that the
future hold promise..
Sources close to the Church told NEWSLETTER that, since last year,
Church attendance has been on the increase. Sunday Schools,
supervised by Mrs Wilhelmina Prinselaar, are growing in numbers
and, already, there are applications to fill the post of Minister-
in-Charge when the Prinselaars return to Canada later this year.
And, Reverend Prinselaar will leave with a justified sense of
'My excitement with the decision to make the Presbyterian Church in
Grenada independent is based in the,fact that it, has rid itself of
its frustrations, he told NEWSLETTER, "and it is now in a position
to accept responsibility in this opportunityto decide its own
Reverend Prinselaar thinks that.future looks good and he has no
Ioubt that the Presbyterian Church in Grenada is on a firm footing.
.e hopes to have another opportunity to serve in Grenada in the
The Interim Retail Price Index published by Government's Central
Statistical Office (CSO) shows an increase in January of 0.30 of a
point over the December figure and a rise of 10.8 points or 6.39%
since January 1982.
According to CSO, between December 1982 and January 1983, housing
increased by 9.4 points, household supplies by 3.8 points and
miscellaneous items by 4.6 points. Alcohol & tobacco, clothing
& footwear and transport all remained static while there were re-
ductions of 1.6 points in food and 3.4 points in electricity.
The Interim Retail Price Index was established in January 1979 with
a base of 100. At the end of January 1983, this index stood at
= --- ";,7
Week Ending 12.3.83
THE GRENADA NEWSLETTER
ECCA REVIEWS ECONOMIES OF WINDWARDS & LEEWARDS
The Eastern Caribbean Currency Authority (BCCA) has reported that,
during the quarter ending 30th September 1982, the economies of the
Windward and Leeward islands showed lower rates of inflation than in
the corresponding quarter in 1981.
This is disclosed in ECCA's recently published Review of the third
quarter in 1982, and the Authority says this performance of the :
economies is due to lower rates of increase in the prices of house-
hold items, services (including transportation), food, clothing and
footwear. But, in connection with the last three items listed,
ECCA points out that they bear a special relation to the rate of in-
"While the rate of price increases of food, clothing and footwear
have declined somewhat", the Review says, "they have still continued
to increase at a higher rate than the overall rate of inflation."
ECCA, serving the countries of Grenada, St Vincent, St Lucia and
Dominica, the Windwards, and Antigua & Barbuda, Montserrat and
St Kitts/Nevis, the Leewards, has its headquarters in St Kitts/Nevis
and is the successor to the British Caribbean Currency Board which
came into being in 1950.'
Appointed by the British Secretary of State for the Colonies, that
Board served not only the Windwards and Leewards but (then) British
Guiana, Barbados and Trinidad & Tobago, issuing both notes and coin
which eventually replaced British currency which had been legal
tender until then..
With the break-up of the West Indies Federation in 1962 and the com-
ing of insular independence to the ex-British colonies, Trinidad &
Tobago and Guyana broke away from the Board which, in 1965, was re-
placed by ECCA. Original signatories to the Agreement establish-
ing ECCA were Antigua, Barbados, Dominica, Montserrat, St Kitts/Ne-
vis, St Lucia and St Vincent with Grenada joining in 1968. Barbados,
issuing her own currency, withdrew in 1974.
The Authority is responsible for the issue and management of a com-
mon currency, the East Caribbean currency, for the Governments it
serves and, in addition to an Annual Report, publishes monthly
statements of its assets and liabilities and a quarterly Econ,..nic
& Financial Review.
The Review for the third quarter of 1982, the most recent published,
says the weak state of the economies of the Windward and Leeward
islands persisted. This, it says, was due to the fact that far-
mers were getting depressed prices for cheir produce on the world
market. The "real prices" of this produce was then lower than
at any time during the last 30 years, the Review says, and this
Week: Ending. 12.3.83
THE GRBNAPA NEWSLETTER
factor reduced "real incomes'* derived from the Area's major commodity
exports, bananas, sugar, cocoa and nutmegs.
Additionally, in that quarter of 1982, export earnings from bananas
were further affected by the continuing fall of the pound sterling,
the currency in which the United Kingdom Buying Agent pays for thq
banana crop of the Windward islands.
In the Area served by ECCA, the Tourist Industry is next in importance
to agriculture, the principal market for tourism being the United
States of America. The Authority reports that, in the quarter
under review, the industry continued to show signs of weakness as
hopes of economic recovery in the U.S.A. (that could lead to a
strengthening of demand for tourist services) failed to materialise.
This fact highlights the Authority's observation that the economies
of the Windwards and Leewards are of a "dependent nature" and the
prospects of their recovery depend crucially on economic recovery in
he industrialized countries, aerecovery of which there are, as yet,
r.o clear signs.
"Most economic forecasts suggest modest expansion in 1983", the Review
says, "though these forecasts have been repeatedly moved further and
further into the future. In any event,.there will be a substantial
lag period between an eventual revival of economic activity in the in-
dustrialised countries, and the transmittal of the beneficial effects
to the economies of the Area."
.CCA points to a continuing fall in the value of notes and coin in
circulation as an indication of the depressed state of the Area's
economies. In the quarter ending 30th June 1982, the Review
says, there was a fall in circulation of EC$1.2 million and, in the
quarter under review, the fall was EC$4.9 million.
Money In Circulation
Notes Coin Total (Decrease) %
Jan 112,752 9,037 121,789 --
Feb 113,763 9,059 122,822 1,033 + .85
Mar 114,792 9,689 124,481 1,659 + 1.35
Apr 114,934 9,779 124,713 232 + .19
May 116,624 9,741 126,365 1,652 + 1.32
Jun 113,520 9,785 123,305 (3,060) 2.42
Jul 115,799 9,856 125,655 2,350 + 1.91
Aug 111,079 9,892 120,971 (4,684) 3.73
Sep 108,089 10,286 118,375 (2,596) 2.15
Week Ending 12.3.83
Week Ending 12.3.83
Another adverse statistic is the continuing decline of ECCA's
foreign assets, which decline is geared to the unattractive returns
earned by the Area's export sector. In the second quarter of
1982, these assets showed a decline of EC$16.9 million and, in the
third quarter, there was a further decline of EC$36 million as
against BC$28.7 million in the corresponding quarter ii 1981.
"While this may be viewed as seasonal in that, generally, the great-
er portion of foreign exchange is earned and accumulated in the
first half of the year and drawn down in the latter", the Review
says, "the decline in the current period (3rd quarter of 1982) is
significantly larger than in the corresponding period of previous
years: a reflection of the poor performance of the export sectors".
Statistics published by ECCA show that deposits with the commercial
banks reached the EC$1,000 million mark in the second quarter of
1982. The rate of growth in the third quarter of that year
(2.62%) surpassed the rate of growth in the second quarter (0.97%),
with the commercial banks adding BC$26.4 million to the deposit
made with them, and the total deposits at 30th September 1982 stand-
ing at EC$1031.653 million.
Of this figure, EC$440.439 million was in savings accounts, 11 ,
EC$177.9il ,willinn -was lodged in demand deposits and BC$413.303
million represented time deposits. These figures'xepresmnt a fall
in savings accounts of over 5% from the previous quarter, a fall of
2.3% in the total of demand deposits and an increase of nearly 16%
in time deposits.
Deposits With Commgrcial Banks
30..9.81 31.12.81 31.3.82
, : i' '" **- ,
THE GRENADA NEWSLETTER
Page 14 THE GRENADA NEWSLETTER Week Ending 12.3.83
"The fall in demand and savings deposits of EC$4.2 million and EC$25.4
million respectively, and the substantial increase in time deposits of
EC$56.0 million which was the highest quarterly increase since March
1981 when the increase was BC$29.0 million)", the Review says, "could
be attributed to the more attractive interest rates offered for these
deposits relative to those on savings deposits".
ZCCA statistics show that, on 30th September 1981, deposits with the
commercial banks in the Windward islands were considerably higher
than similar deposits in the Leewards. At that date, Windwards
deposits were over 40% higher than Leewards but, at the end of
December in that .year;, this difference had dropped to 38.9%. By
March 31st 1982, it was 36.4%, by June 30th 1982 it had fallen
slightly to 3610% and, at the end of September 1982, it stood at
34%, a total drop of nearly 7% over a 16 month period,
Further analysis of the deposit statistics further indicates what
appears s to be a greater per.capita "thriftiness" in the Leewards as
compared with the Windwards.
At the end of the quarter under review, deposits with commercial
banks in the Area stood at BC$1031.653'million and, working from
the census figures of 1970 and assuming a uniform population
growth of 1.011 per annum, the population of the Area in 1982 was
just over half a million. This was divided between the Wind-
:ards and Leewards on the basis of 755o and 25% approximately
-s pect ively.
On the basis of these figures, deposits with the commercial banks
in the Area in the third quarter of 1982.averaged about BC$1,940.00
per person. In the Leewards, however, this average reached
nearly EC$3,200.00 while, in the Windwards, it fell to some
:redit extended by commercial banks in the Area increased by
:-C$30.930 million or 3.6% to BC$868.292 million during the quarter
under review. This compares with an increase of BC$36.91 million
or 4.6% in the previous quarter and an increase of EC$32.872 or 4.6%
in the corresponding quarter of 1981.
Of the total increase in credit, the private sector absorbed BC$23.1
million, loans to the business community increased by EC$21.8
million, this figure being dominated by an increase of BC$12.8
million to the distributive trades sector.
Total credit extended to the distributive trades sector for the
'* Irter was EC$144.567 million and this must be compared with total
rdit to agriculture of EC$37.780 million (a fall of FC$2.152
million from the previous quarter), EC$67.573 million to
ranufacturung (a marginal fall of EC$1.147 million), and EC$46.518
THE GRENADA NEWSLETTER
million for tourism (an increase of BC$4.723 million over the pre-
vious quarter). The value of loans for tourism in this quarter
was on the approximate ratio of 2 to 1 in favour of the Windwards.
Analysis of Commercial Banks'
Loans & Advances
1. Pood & non-
2. Clothing & acc-
3. Other industries
Construction & Land
Government & Stat-
Professional & Other
1. House & Land
2. Durable Consumer
3. Other personal
% of Long Term Loans
to Total Loans
29,373 8.3 26,463
75,785 21.5 57,624
51,232 14.5 74,478 14.4 125,710
Personal loans, which had increased substantially by EC$12.9
million during the previous quarter, fell by the small margin of
just over half a million dollars .in the quarter now under review.
Of the total of EC$245.324 million outstanding in personal loans,
more than half (EC$125.710 million) represented purchases of
houses and land. Loans for the purchase of consumer durables
fell by EC$3.062 million from EC$51.566 Billion to BC$47.604
million, and there was an increase of FC$2.828 million in other
personal Icans from EC$69.182 million to EC$72.010 million.
Week Ending 12.3.83
r- -- ---
THE GRENADA NEWSLETTER
On the .basis of estimated population statistics, personal loans in the
Leewards averaged EC$725.00 per capital with EC$140.00 per capital rep-
resenting loans for the purchase of houses and land. In the Wind-
wards, relative figures for the third quarter of 1982 were EC$367.00
I- 'V \
12th March 1983
Printer & -Published by the Froprietors
Ai1ster & Cynthia Hu,,hes, Journalists
of Scdtt Street, St Ger.rges, Grenada, Westindies
Week tsnding, 12'3.83