Grenada Loan Dispute Threatens to Close International Airport

By Brian Major

A long-running dispute between Taiwan and Grenada over a $28 million loan payment purportedly owed by the Caribbean nation may cause the shutdown of Maurice Bishop International Airport, according to airport authority official.

International airlines using Maurice Bishop airport are complying with an order from a U.S. court to forward fees and taxes they collect to an escrow account following Grenada’s default on loans issued by Taiwan’s state-owned bank in the 1990s.

In a local radio interview, Rodney George, chairman of the airports authority, said the airport has lost $500,000 in revenue it previously gained from landing fees and taxes that airlines collect on Grenada’s behalf. “It is quite unfortunate but it is happening,” he said. “We have been notified by Virgin Atlantic Airways. It is British Airways. It is American Airlines. And it is Delta.

George said the airport authority has appealed to Nazim Burke, the country’s finance minister, to request state assistance. Late last year, Burke himself said similar demands by U.S. courts compelling American Airlines and Princess Cruises to forward fees and taxes they collect in Grenada to Taiwan could cause travel operators to avoid the country, crippling its tourism-dependent economy. “It’s a very serious matter and one that has been keeping me awake at nights,” said George. “The prospect of operations at the airport grinding to a halt is something that will have dire consequences on the entire country. The next three to four weeks are critical.”