ST. GEORGE’S, Grenada, CMC – The Grenada government says it will seek to raise EC$15 million (One EC dollar=US$0.37 cents) by auctioning 91-day Treasury Bills on April 28.
The Treasury bills will be issued on the Regional Government Securities Market (RGSM) and traded on the Secondary Market trading platform of the Eastern Caribbean Securities Exchange (ECSE) at the maximum rate of 3.50 percent during three hours.
The Treasury bills are being issued as part of the Government’s Debt Management Strategy to lower the cost of its borrowing by reducing reliance on the overdraft facility.
According to the Government’s Prospectus, which offers details about the auction, 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, Saint Lucia, St. Kitts and Nevis, and St. Vincent and the Grenadines.”
This latest auction is in keeping with the initiatives by government to auction off several Treasury Bills in January, April, and August.
The Prospectus noted that following the COVID-19 pandemic, public finances continued to bolster in 2022 with an expanded primary surplus.
“Public debt is on the decline moving from 70.6 percent of GDP (gross domestic product) in 2021 to 63.9 percent at the end of September 2022, with further decreases forecasted over the medium term.
“The outlook over the medium term remains positive with growth averaging 4.1 percent during the period 2023-2025 despite considerable downside risks,” said the Prospectus.
and then  by auctioning 91-day Treasury Bills on April 28){kind=link}