GEORGE’S, Grenada, CMC – The Regional Debt Coordinating Committee (RDCC) says activity on the Regional Government Securities Market (RGSM) continues to show signs of recovery following an almost 15 percent decline in 2020 due to the coronavirus (COVID-19) pandemic.
The RDCC, which comprises financial secretaries and permanent secretaries in the ministries of finance from the eight countries of the Eastern Caribbean Currency Union (ECCU) as well as the Governor of the Eastern Caribbean Central Bank (ECCB), has direct oversight for the RGSM.
It also provides a forum for enhancing the overall debt management capabilities of the member governments. Following its 47th meeting held virtually, the RDCC said the five participating member governments of the ECCU, which issued securities on the RGSM in 2022, raised capital amounting to EC$1.2 billion (One EC dollar=US$0.37 cents) in maturities ranging from 91 days to 10 years.
The RDCC further noted that as of May 31 this year, member governments had raised EC$18.1 billion on the market since its inception in 2002.
The RGSM provides investment opportunities for citizens and residents of the ECCU to diversify their investment portfolios. The interest rates offered on government securities are above the minimum savings deposit rate commercial banks provide.
In 2022, interest rates on Treasury Bills ranged from two percent to 3.1 percent, and for bonds, rates ranged between 4.3 percent and 7.2 percent.
“Notwithstanding the higher interest rates, the RDCC noted the continued dominance of institutional investors on the market and approved the following measures to encourage household investors to grow their wealth by investing in government securities on the RGSM,” said.
It calls for the creation of a roadmap to guide the design of unique investment options for retail investors as well as a reduction of the minimum investment amount in special instruments from EC$5,000 to EC$500 for retail investors; and the absorption of the fees associated with those special instruments by issuing governments of up to EC5,000 per retail investor.
The RDCC said that implementing those measures is subject to the approval of the ECCB Monetary Council and respective governments of the ECCB member countries.
The RDCC meeting also approved an official logo to commemorate the 20th anniversary of the RGSM.
and then  says activity on the Regional Government Securities Market (RGSM) continues){kind=link}