Trade Minister Oliver Joseph, who tabled the resolution seeking the request during Friday’s session of the House of Representatives, said the Public Finance Management Act, authorises the investment of public money forming part of the Consolidated Fund.
Prime Minister Mitchell, whose New National Party (NNP) controls all 15 seats in the Parliament, said that in the absent of this law, which was approved as art of the Structural Adjustment Programme, his administration could have gone ahead and purchase without official informing the public.
“The Cabinet has already approved this and so we are complying with the law by bringing it to receive the approval of the Houses of Parliament,” he said, indicating that Grenada will benefit more from the bank by purchasing the shares.
“We stand to benefit immensely from purchasing these additional shares,” Mitchell told legislators.
The resolution will now go before the Senate next Friday where the opposition has a voice in the body.
The IBRD is a global development cooperative owned by Grenada and 188 other member countries. As the largest development bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries.
According to its website, the IBRD funds development projects in member countries and finances its loans from its own equity and from money borrowed in the capital markets through the issuance of World Bank bonds.
Joseph said the IBRD directors had authorised the capital stock be increased by 484,102 shares with each share having a par value of US$100,000.
He said that Grenada has been allotted 142 shares.
- Countries: Grenada