The administration is singing its own praises for having finally honored completely EC$151 million worth of treasury bills that were offered in 2006 on the Regional Government Securities Market (RGSM), two years after taking office. This was the first time in Antiguan history that the RGSM was utilized. And tomorrow, continuing on that stride, another US$10 million bond will be issued.
Repayment of the bonds began in 2010 on three types of securities that were offered and accepted. They stood at $17 million each with a 6.5 percent interest rate. And there was another Bill worth $70 million that attracted an 8.5 percent interest rate, and nine percent for the remainder of the term.
Caribbean Times understands that the seven year old commitment was kept up to date without hindrance throughout the repayment period.
The government’s Debt Management Unit said on Saturday that it is based on this firm repayment history that the government continues to issue T-Bills. A burst in this began in mi- 2012 and continues on an almost quarterly basis to date.
So far for this year two Bills have been issued and both have been reportedly oversubscribed.
Come July 30, another seven year bond will be issued according to the unit, when government will move to borrow up to US$10 million through the Eastern Caribbean Securities Exchange (ECSE), with a 7.5 percent interest rate. And should an oversubscription on this bond also be realized, the government says it is willing to accept at least another 50 percent (US$5 million) on it.
The money, according to the unit, is needed to “refinance maturing RGSM securities” and deal with existing cash-flow gaps.
Local investors have an opportunity to participate in the auction through ABI Bank.