Banking
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he highest form of monetary authority lies with the Eastern Caribbean Central Bank (ECCB),who exercise wide control over the management of Grenada’s and other Eastern Caribbean Countries monetary system. ECCB act as banker both to Government and to the commercial banks and a lender of last resort to the financial system as a whole. The conduct of monetary policy is one of the most important functions performed by the ECCB on behalf of Government. Where the financial markets are large and diversified; a Central bank is able to control the cost and availability of funds through the manipulation of discount rates and open market operations. In Grenada, there are no diversified financial markets; hence the instruments of financial policy are therefore more directly related to the creation of means of production and to the development of the physical and financial infrastructure. EXCHANGE CONTROL Due to liberalizations by the Eastern
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management fees and other fees; and • pay licensing fees for franchising agreements. Government may prevent a transfer of funds through the equitable, nondiscriminatory and good faith application of Acts relating to: • bankruptcy, insolvency, or protection of the rights of stockholders or creditors; or • if criminal or penal offences against the Investor or Investment Enterprise are outstanding before the courts; or • to ensure compliance with orders or judgements in legal proceedings; and • when there is a balance of payments emergency as defined and accepted by the IMF. The average period for remitting all kinds of investment returns is 24 hours. LOCAL BORROWING The policy as it relates to local borrowing by foreign companies is flexible and is dependent on national interest considerations as determined by the ECCB from time to time.
Caribbean Central Bank (ECCB) there are no exchange controls on foreign currencies and securities. As a result, an individual of either local or foreign origin can transact foreign monies and/or operate a foreign currency account with any of the commercial banks providing that the services are offered. However, the exchange rates are determined by the ECCB. REPATRIATION OF FUNDS The repatriation of capital, dividends, interest and other distributions and gains can be freely transacted, subject to paying all applicable taxes. Both foreign and domestic investors may freely, and unconditionally and without hindrance: • repatriate dividends, earnings and capital from their investment enterprises • remit the proceeds in the event of sale or liquidation of an enterprise or interest attributable to an investment • pay interest on international loans • pay for imports • pay fees for trademarks, royalties, and www.businessgrenada.com
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