by Linda Straker
- 91-day Treasury Bill issued on 6 February raised EC$15 million
- 2-year Treasury Note issued on 14 February raised EC$10 million
- Next 91-day Treasury Bill will be on 9 May 2024
The Government of Grenada has raised EC$25 million on the Eastern Caribbean Securities Exchange (ECSE) platform by issuing a 91-day Treasury Bill on 6 February that raised EC$15 million, and a 2-year Treasury Note on 14 February that raised EC$10 million.
The difference between a Treasury Bill and a Treasury Note is that treasury bills mature in less than one year and treasury notes mature in 2 to 5 years.
About the Notes, the 14 February daily report of the ECSE said, “The competitive uniform price methodology used, resulted in an interest rate of 3.25%.” The treasury bill and notes issues are being raised under the authority of the Public Debt Management Act 2015, Part 3 Section 13, Laws of Grenada.
According to the Government of Grenada 2024 Securities prospectus, the treasury bills and notes are being issued as part of the Government’s Debt Management Strategy to lower the cost of 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,” said the prospectus which is available for investors. “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.
