by Linda Straker
- Treasury Bill issues raised under Public Debt Management Act 2015
- 91-day Treasury Bill, auctioned on ECSE’s primary market platform raised $15.0 million
- Economy forecast to grow by 3.6% in 2024
The first 91-day Treasury Bill issued by the Government of Grenada for the year 2024 has raised EC$15 million according to the 6 February daily report issued by the Eastern Caribbean Securities Exchange (ECSE).
“On the Regional Government Securities Market today 6 February 2024, the Government of Grenada’s 91-day Treasury Bill, auctioned on the ECSE’s primary market platform raised $15.0 million. The competitive uniform price methodology used, resulted in a discount rate of 3.46972%,” said the daily report.
Treasury Bill issues 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.
According to the Government of Grenada 2024 Prospectus, the Treasury bills are being issued as part of the Government’s Debt Management Strategy to lower the cost of the Government’s borrowing by reducing reliance on the overdraft facility.
The prospectus states that Government’s debt strategy places a strategic emphasis on prioritising concessional borrowings, setting predetermined ceilings for non-concessional borrowings, and aligning with debt sustainability targets. “The strategy aims to support major projects that advance the Government’s agenda for transformation, resilience, and sustainable development. Strengthened risk assessments, improved debt proposal evaluations, and enhanced negotiating and contracting practices are key components to secure favourable terms in line with debt sustainability goals.” The prospectus is available for investors.
According to the prospectus, “The government’s strategic focus involves an expansionary fiscal profile, projecting smaller primary surpluses to support economic activity, job creation, and resilient development, aligning with the Fiscal Resilience Act 2023. The economy is forecasted to grow by 3.6% in 2024 and economic prospects are broadly positive. Potential risks include global inflation, tepid growth in source markets, geopolitical tensions, and adverse weather.”
For 2024, Government intends to raise EC$115 million by issuing treasury bills at different periods. The next 91-day Treasury Bill will be on 9 May 2024. Each investor is allowed one bid with the option of increasing the amount being tendered until the close of the bidding period. “Yields will not be subject to any tax, duty, or levy by the Participating Governments of the Eastern Caribbean Currency Union (ECCU). The countries are Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Lucia, St Kitts and Nevis and St Vincent and the Grenadines,” states the prospectus.
