ST. GEORGE’S, Grenada, CMC – The Grenada government has received the green light to amend existing legislation allowing statutory bodies and state-owned enterprises with excess funds to invest in regional and international government securities.
“This is ultimately aimed at strengthening entities such as the National Insurance Scheme by allowing them to build portfolio resilience by diversifying their investment portfolios. This includes investments in government securities which are currently prohibited,” said Phillip Telesford, the Leader of Government Business in the House of Representatives.
Economic Development Minister, Lennox Andrews, said the 2015 Public Finance and Management Act amendment would bring positive results to entities as they become more financially resilient.
“For example, there is what is called the Regional Government Securities Exchange, which the Eastern Caribbean Central Bank operates. So if a statutory body wants to invest, it can invest in regional securities. The law doesn’t allow them to do so now. That is the beauty of this.
“It allows them to go beyond the local boundary and invest regionally and internationally. So, for example, if the US government is issuing Treasury bills or bonds, they can buy it,” Andrews told legislators, adding that the amendment provides the statutory bodies and state-owned enterprises a new option for making money and becoming financially strong.
“Now that you can invest outside of Grenada, you should seek to establish investment units within your institutions and begin to take advantage of the opportunities available for you by buying government securities, treasury bills, and government bonds wherever,” he said.
Almost 30 state-owned enterprises and statutory bodies exist, but only some are known to be operating and making excess funds or profits or classified as profit-making bodies.
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