by Linda Straker
- EC$10 million 365-day treasury bill to be issued on 12 December
- 91-day and 365-day treasury bills auctioned on 24 October
- Government raising funds to refinance existing treasury bills and notes
Two treasury blls valued collectively at EC$25 million, auctioned on the Regional Securities Market on Monday, 24 October 2022, by the Government of Grenada, were auctioned at discount rates.
“The Government of Grenada’s 91-day and 365-day Treasury Bills auctioned on the ECSE’s primary market platform raised $15.0 million and $10.0 million respectively. The competitive uniform price methodology used, resulted in discount rates of 1.49441% and 2.43902% respectively,” said the regional market report for 24 October.
The 91-day treasury bill originally scheduled for 20 October was rescheduled for 24 October, the same day that the 365-day treasury bill was scheduled to be auctioned on the Eastern Caribbean Securities Exchange (ECSE).
The ECSE is the regional securities market established by the Eastern Caribbean Central Bank (ECCB) and licenced under the Securities Act of 2001, a uniform regional body of legislation governing securities market activities.
The Government is raising the funds to refinance its existing treasury bills and notes. Both the 91-day and the 365-day treasury bills were promoted on the ECSE Facebook page. The maximum rate for the 91-day treasury bill was 3.50%, while the 365-day Treasury bill was set at the maximum rate of 5.0% per annum.
The treasury bBill issues and notes are raised under the authority of the Public Debt Management Act 2015, Part 3 Section 13, Laws of Grenada. The Constitution of Grenada stipulates that principal and interest payments are direct charges on the Consolidated Fund.
The Public Debt Management Act gives the Government the authority to borrow from any legitimate source, in such form and on such terms and conditions as may be determined by Cabinet. This is the 3rd time the Dickon Mitchell administration has issued treasury bills since winning the 23 June General Election. The Government also issued a EC$ 15 million 91-day treasury bill on 19 July 2022.
The Government is set to issue a EC$10 million 365-day treasury bill on 12 December 2022.
