by Linda Straker
- 91-day Treasury Bill of EC$15 million to be issued on 20 October
- 365-day Treasury Bill of EC$10 million to be issued on 24 October
- EC$10 million in 365-day Treasury bills to be issued on 12 December
The Government of Grenada is seeking to raise EC$25 million on the Eastern Caribbean Securities Exchange (ECSE) during the month of October by issuing a 91-day Treasury Bill of EC$15 million and a 365-day Treasury Bill of EC$10 million on 20 and 24 October respectively.
The ECSE is the regional securities market established by the Eastern Caribbean Central Bank ECCB) and licenced under the Securities Act of 2001, a uniform regional body of legislation governing securities market activities.
The Government is raising the funds to refinance its existing Treasury bills and notes. The 91-day Treasury Bill is currently promoted on the ECSE Facebook page. The maximum rate for the 91-day Treasury Bill is 3.50%. As for EC$10 million in 365-day Treasury bills that will be issued on 24 October 2022, the maximum rate will be set at 5.0% per annum.
The Treasury Bill issues and notes are being raised under the authority of the Public Debt Management Act 2015, Part 3 Section 13, Laws of Grenada. The Constitution of Grenada stipulates that Principal and Interest payments are direct charges on the Consolidated Fund.
The Public Debt Management Act gives the Government the authority to borrow from any legitimate source, in such form and on such terms and conditions as may be determined by Cabinet.
Section 13 states that subject to any other provision of this Act, the Minister may cause to be issued Government securities in the manner provided for by this Act for any purpose specified in Section 9 upon terms and conditions negotiated by the Minister.
Section 9 states that the Government may borrow under this Act to meet fiscal requirements, which shall include:
(a) to finance any Government budget deficit
(b) to maintain a prudent credit balance on the Consolidated Fund
(c) to finance capital projects reviewed and approved by Cabinet
(d) to on-lend to statutory bodies
(e) to honour obligations under Government guarantees created in accordance with the provisions of this Act
(f) to refinance outstanding or maturing public debt, prepay or buy back outstanding public debt, or exchange existing public debt for new public debt
(g) to immediately mitigate or eliminate effects caused by a natural or environmental disaster or any other national emergency as may be approved by Cabinet
(h) to replenish its foreign currency reserves to strengthen its balance of payments
(i) to support, to the extent that market conditions, prudence and policy goals permit, the development of the domestic debt market through a viable interest rate curve for Government borrowing, using appropriate benchmark issues to help track the prevailing costs of short-term, medium-term and long-term financing
(j) to meet any other purpose as may be approved by Parliament
According to the prospectus covering January to December 2022 and issued by then Dr Keith Mitchell-New National Party Government in January 2022, the Government was hoping to raise EC$115 million on the ESCE.
Since the Dickon Mitchell administration took over the management of the country on 23 June, Government also issued a EC$ 15 million 91-day Treasury bill on 19 July 2022. The two issuances in October will make it the third time that the Dickon Mitchell administration raised financing via that medium since coming into office.
The Government is also set to issue EC$10 million in 365-day Treasury bills on 12 December 2022.
Or reparations???
LOL……Man this serious business