OPINION: Saint Vincent and the Grenadines
Is
It Worse Than Misbehaviour in Office?
By
Nathan ‘Jolly’ Green, March 14, 2020.
When
Ralph Gonsalves stepped down as Minister of Finance, he appointed his
son Camillo Gonsalves to take over the Ministry of Finance. Keeping
it in the family as one may say, or even in the dynasty. Why was that
ministry handed to the Prime Ministers son, was it because there were
skeletons in the cupboard which needed to be kept in the cupboard?
Saint
Vincent and the Grenadines ULP Government, as far as I can see,
started selling Treasury-Bills in 2003. It could have started even
earlier than that, but I cannot find the records if it did. The
reason why the ULP Government did this is somewhat obscure, and I can
see no direct benefit to the country or its people. There is
undoubtedly a benefit to those buying the short term Treasury-Bills.
Treasury
Bills Act 1971, revised 2002.
Here
is what I found, 91 day Treasury-Bills were auctioned every month for
at least the last fifteen years, obviously more. One every month,
sometimes more. I don’t think they ever missed a months sale over
all those years. There are always at least three overlapping
Treasury-Bills running during any month. Although long term Bond
borrowing has to be approved by Parliament, the Treasury-Bills as
short term borrowing instruments do not. So Parliament is unaware and
un-notified of the monthly auctioning of the Treasury-Bills.
There
is evidence that the Treasury-Bill sales were for no stated purpose
than to pay for the renewal of the first three bonds ever auctioned
all those years ago. Every sale states ‘Purpose
of Issue: “To refinance the existing issues of Treasury Bills.”
This
statement goes towards proving that the ULP Government with Ralph
Gonsalves at the helm as Minister of Finance has treated these
Treasury-Bills as long term instruments. As long term instruments,
but never brought before the House for approval. Perhaps a direct
attempt to circumvent the need to do so.
There is
a strong smell of rotting fish in the air.
So
what is the difference between a Bill and a Bond?
Treasury-Bills
mature in a year or less, SVG's 91 days. Because of their short
duration, these securities don't make regular interest payments. St
Vincent generally auctioned 91-day Treasury-Bills, Treasury-Bills are
sold at a discount to their face value, and investors then get the
full face value amount upon maturity. Treasury-Bills are a good deal
for the buyer but generally more expensive borrowing along with many
more fees for the seller/government, who on top of paying a higher
interest rate, pay auction, and handling fees to the selling agency.
Treasury-Bills
have a face value of a certain amount, which is what they are worth.
But they are sold for less. The difference between the amount that
you buy them for and what you receive on maturity is considered
interest, or your payment for the loan of your money. The difference
is called the discount rate and is set as a percentage. That is not
per annum %; it is for the three month period that SVGs Bills are
issued for.
Treasury
Bonds Generally speaking are multiple-year instruments, the longer
the maturity of a Treasury Bond, usually the higher the annual yield
it will pay, all other factors being equal. The SVG Government has
typically issued Bonds valid for 7 to 10 years. In contrast, a
Treasury Bill gives a discounted rate regardless of the length of
validity, which cannot exceed one year.
Treasury
Bills do not need parliamentary approval because they are short term,
never exceeding twelve months, and designed to be used occasionally
in emergency borrowing. If long term borrowing is required, a
Treasury Bond should be auctioned.
But
what has been happening, the short term system of borrowing against
Treasury Bills has been abused, and they are an expensive way of
government borrowing money. The Treasury Bills have been rolled over
every 91 days, the new Bills replacing the repaid Bills, so over the
last 13-15 years, there have never been less than EC$75 million sold
each quarter year, and currently sometimes a hundred million.
Treasury Bills are designed to be a short-term money market
instrument issued by central banks or governments on behalf of the
Government to curb temporary liquidity shortfalls; they are supposed
to be used as an occasional instrument. So what that means, someone
in the past years has cheated the system. Cheated the system by
ensuring at least one new Bill is auctioned every month and thus
hidden a 75 to a hundred million dollars debt every quarter from
Parliament.
If
the Government had paid off the initial Treasury-Bills by floating a
Bond, it would only have cost about six-%-pa. And only one
floatation and handling cost would have been payable instead of many
such charges.
Under
the ULP Government, the short term Treasury Bills have become a long
term borrowing instrument by being renewed without failure every
three months, with new Bills issued every month. What has happened is
that each month a new Treasury Bill is auctioned, the oldest of the
three overlapping Bills is repaid from the sale of the new Bill.
Hence the use of the sale of Treasury-Bills to bypass the need to get
parliamentary approval for borrowing large amounts of money. In fact
there is documentary evidence that proves it is almost the same
institutions that buy the Bills every month. These Treasury Bills
dealt with on this basis only benefit the buyer of them and not the
Government of SVG, and indeed not Vincentian Citizens. Unless, of
course, the ULP government considers it a benefit too them to hide
the borrowing of money, hiding it from the opposition NDP party in
Parliament.
They
are even offering a twelve month prospectus which changes the whole
reason for Treasury-Bills.
https://eccb-centralbank.org/debt-portal/documents/open/82
Then
coupled with this statement of purpose ‘To
refinance the existing issues of Treasury Bills’ it
transforms the borrowing against Treasury-Bills, into long term for
the government and short term only for the buyers. But also
compounding this theory is the fact that the same buyers each time
buy each batch of Bills.
But
why have they done this, why are they not selling longer term Bonds,
what is going on? They have been doing this continually, month on
month, year on year for the last fifteen or more years?
Has
there been more than the eye sees in the un-necessary monthly
issuance of Treasury-Bills, has someone or some group dynastical or
private gained a benefit? Was the whole thing only designed to
confuse and act in an anti-constitutional way, or was it much deeper
than that?
It
is intent that rules in this matter. It should also be noted that for
a charge of fraud to be brought, there must be a loss. I feel
convinced a loss can easily be established in this matter.
Did
anyone in Government benefit from the sales of Treasury-Bills? We
know what banks bid for and bought the Bills, but they bought them
for clients and we do not know who they are.
As
we all know, today's banks have to run their affairs on absolute
transparency, mainly where fraud and money laundering are concerned.
Therefore a proper investigation by a legal team should be able to
come up with the answer. Maybe banks themselves will be required to
stomp up some of the extra cost money themselves. Everyone involved
in the sale of the Treasury-Bills, banks, agents, and the sales
platform; owe a duty of care to SVG. So every one of them may get
caught up in legal redress for SVG.
Will
that ever happen? I am sure not, while the ULP is in power because
many believe the police and judiciary are under the control of the
Government. Get the NDP in control, and maybe there will be people
banned from becoming MPs in the future, perhaps for several, even
many, or even a dynastical group.
Just
for the readers further information, besides these Treasury-Bills
Saint Vincent and the Grenadines has currently outstanding Bond
repayments $224,532,832.00 which fall due for payment on maturity
between 2021 and 2028. Let’s say for this exercise the annual
interest we pay is 6% to the Bond holders, that amounts to about
EC$13,471,969 payable every year in interest alone. That’s Thirteen
million, four hundred and seventy one thousand, nine hundred and
sixty nine East Caribbean Dollars in interest, payable every year.
Of
course that is the very tip of the iceberg when you consider we are
approaching two billion dollars in national debt. Which is costing
perhaps a further 120 million a year to service. Then blink and add
the EC$13,471,969 and a sum of about EC$80 million for the repayment
of the Treasury-Bills, hey presto, we are broke.
We
are rapidly heading in the same direction as Venezuela, do we really
want to re-elect these people?
Peter
Binose warned us about the Treasury-Bill matter as early as 2014, no
one took notice of him then. But we have many more records than he
had at that time, and the big picture was nowhere near as clear as it
is today
https://www.iwnsvg.com/2014/08/20/is-svgs-govt-running-a-mega-ponzi-scheme/
Godwin
Friday recently warned us about this other matter, which may prove to
have some similarity.
https://www.iwnsvg.com/2020/02/12/govt-breaks-finance-law-hides-it-with-another-illegality-friday/
Any legal agency, Interpol or other who want my research they are welcome to a copy, there is a lot of it.
The following has been provided and claimed by the author as supportive evidence to the above.
SVG BONDS AND BILLS
Long
term Government Treasury Bonds, and short term Government Treasury
Bills, there are some similarities among these two types of
fixed-income investments. Both are both backed by the SVG government.
But the
primary difference between them is the time each one takes to mature.
Additionally, one has a different interest-payment structure. Each
type of bond or bill has a different use.
The
Treasury Bond is a long term government borrowing instrument, used
for capital projects, and general government funding when state
income is not enough for governments spending requirement.
The
Treasury-Bill is for short term borrowing, designed to be issued
occasionally to cover government temporary shortfall in available
revenue.
According
to records Saint Vincent and the Grenadines Government started
selling Treasury Bills and Treasury Bonds in March 2006. It could
have started even earlier than that, but I cannot find the records if
it did. The reason why the Government did this is somewhat obscure,
and I can see no direct benefit to the country or its people in
selling Treasury-Bills. There is undoubtedly a benefit to those
buying the Bills, less risk and a higher return.
Research
tells me that Treasury-Bills instead of being a short term,
temporary, occasional instrument to raise fund when government funds
are low. Treasury Bills have auctioned every month for the last
twelve years. One every month, sometimes more. Treasury Bonds have
to be passed before Parliament for approval, but Treasury-Bills being
short term borrowing instruments do not. So Parliament is unaware and
un-notified of the monthly auctioning of the Treasury Bills, they
have no oversight of the amount and frequency sold.
So what
is the difference between a Bill and a Bond?
Treasury
Bills mature in a year or less. Because of their short duration,
these securities don't make regular interest payments. In essence, St
Vincent generally auction 91-day Treasury-Bills. Treasury-Bills are
sold at a discount to their face value, and investors then get the
full face value amount upon maturity. The interest rate shown at the
time of sale is a discount rate. The final rate is determined at
conclusion of the auction.. Treasury Bills are a good deal for the
buyer but slightly more expensive borrowing for the
seller/government, who on top of paying a higher-interest rate, pay
auction, and handling fees from the selling agency.
Treasury
bills have a face value of a certain amount, which is what they are
worth. But they are sold for less. For example, a bill may be worth
$10,000, but perhaps you would buy it for $9,000. Every bill has a
specified maturity date, which is when you receive money back. The
Government then pays you the full price of the bill -- in this case
$10,000 -- and you earn $1000 from your investment. The amount that
you earn is considered a discount payment, but is in fact interest,
or your payment for the loan of your money. The difference between
the value of the bill and the amount you pay for it is called the
discount rate and is set as a percentage. In the example above, the
discount rate is 10 percent, because $1000 is 10 percent of $10,000.
That is not per annum; it is for the three month period that SVGs
Bills are issued.
Treasury
Bonds Generally speaking are multi-year instruments, 2-7-10 or more
years, the longer the maturity of a Treasury Bond, usually the higher
the annual yield it will pay, all other factors being equal. For
example, all Treasury-Bond’s can be expected to carry a yearly
stated interest rate on the borrowing. In contrast, a Treasury-Bill
gives a discounted rate regardless of the length of validity, which
cannot exceed one year.
Treasury
Bills do not need parliamentary approval because they are short term,
never exceeding twelve months, and usually used in emergency
borrowing. If long term borrowing is required, another Treasury Bond
is auctioned.
But what
has been happening, the short term system of borrowing against
Treasury-Bills has been abused, and they are a more expensive way of
government borrowing money. The Treasury Bills have been rolled over
every 91 days by the SVG government, the new Bills replacing the
repaid Bills so over the last twelve years there have never been less
than EC$75 million sold each quarter year. So what that means, the
government has borrowed millions for many years without oversight of
parliament.
If the
Government had paid off the initial Treasury Bills by floating a
Bond, it would only have cost about 6%pa, with only one set of
handling fees payable to the sale platform and possibly agents.
Treasury-Bills
are the short-term money market instrument, issued by the Vincentian
Government, which should be only issued to fill temporary liquidity
shortfalls. But the Treasury-Bill has become a long term investment
by being renewed without failure every three months, with new Bills
issued every month to replace a Bill repaid at maturity during the
same month. This procedure is an evident and inexcusable
circumvention of the finance act. And a flagrant curcumvention
regarding reporting to parliament.
HISTORY
OF SVG’s PROMISARY PAPER TRADING
Proposed
upcoming auctions
20 Mar
2020 Government of St Vincent and the Grenadines, to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
23 Apr
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
21 May
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
24 June
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
17 July
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
24 Aug
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
28 Sep
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
19 Oct
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
25 Nov
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill
Sales
Records to Date
17 Feb
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill [sold = to 7.52456%pa]
Four
licensed intermediaries placed a total of 19 bids, ranging from
$150,000 to $7.0 million, with an aggregate value of $47.4 million. A
competitive uniform price auction
methodology
was used and the resulting discount rate was 1.88114 per cent.
The
brokerage firms of Bank of Saint Lucia, Bank of St Vincent and the
Grenadines
Limited,
First Citizens Investment Services Ltd and Grenada Co-operative Bank
Ltd.
http://www.ecseonline.com/PDF/2020/Feb/TB%20VCB190520%20-%2017Feb20.pdf
21 Jan
2020 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill [ = aprx 19% pa]
19 Dec
2019 Government of St Vincent and the Grenadines to issue a 91-day,
EC$28.0M max 4.82% Treasury bill.
[Maturity
03/20/2020]
16
Dec 2019 Government of St Vincent and the Grenadines to issue a
7-year EC$30.0M, max 6.75%pa Bond [Maturity date 17 Dec 2026]
14 Nov
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill [ = aprx 7.95636% pa]
Four
licensed intermediaries placed a total of 20 bids, ranging from
$10,000 to $8.0 million, with an aggregate value of $39.4 million. A
competitive uniform price auction methodology was used and the
resulting discount rate was 1.98909 per cent.
The
brokerage firms of Bank of Saint Lucia, Bank of St Vincent and the
Grenadines Limited, First Citizens Investment Services Ltd and
Grenada Co-operative Bank Limited and participated in this auction.
18 Oct
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
17 Sep
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
12
Sep 2019 Government of St Vincent and the Grenadines to issue a
7-year EC$20.0M, max 7.0%pa Bond [Maturity date 13/09/2026]
13 Aug
2019 `Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
17 Jul
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
5 July
2019 Government of St Vincent and the Grenadines, issue of a 6.25%
discount Treasury Bill repayable 7May 2020
ISIN
=KN74083NAS386. EC$17, 664, 000.
Auction
Date= 05/07/2019 Maturity 05/07/2020
14 Jun
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
10 May
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
15 Apr
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
13 Mar
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
6 Feb
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
10 Jan
2019 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
10 Dec
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
26
Nov 2018 Government of St Vincent and the Grenadines to issue a
10-year EC$8.0M bond, max rate 7.50% [Maturity date 11/27/2028]
8
Nov 2018 Government of St Vincent and the Grenadines to issue 8-year
EC$15.0M, max 7.25% Bond [Maturity date 9 Nov 2026]
5 Nov
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
24
Oct 2018 Government of St Vincent and the Grenadines to issue 8-year
EC$15.0M, max 7.25% Bond - CANCELLED
9 Oct
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury Bill
6 Sep
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
2 Aug
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
6 Jul
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
5 Jun
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
30 Apr
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
4 Apr
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
02 Mar
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
25 Jan
2018 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
28 Dec
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28.0M, max 4.82% Treasury bill
29 Nov
2017 Government of St Vincent and the Grenadines to issue a 91-
day
EC$28.0M, max 4.82% Treasury bill
26 Sep
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
28 Aug
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
21 Jul
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
06
July 2017 St.Vincent and the Grenadines, ISIN= KN74083NAJ13
Domestic
bonds 6% pa EC$35M [Maturity 7/03/2020]
23 Jun
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
25 May
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
12
May 2017 Government of St Vincent and the Grenadines to issue a
7-year EC$25.0M, max 7.5%pa bond [Maturity date 14 May 2024]
19 Apr
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
22 Mar
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
21 Feb
2017Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
16 Jan
2017 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
19 Dec
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
18 Nov
2016Government of St Vincent and the Grenadines to issue a 91-day
EC$28M, max 4.82% Treasury bill
26
Aug 2016 Government St Vincent and the Grenadines, 7 year Domestic
bond ISIN=KN74083NAE42 7%pa EC$300K
[Maturity
date 08/26/2026]
26
Aug 2016 St Vincent and the Grenadines, Domestic bond 7%pa
US$6,039,000. ISIN=KN74083NAF17 [Maturity date 08/26/2026]
17 Aug
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
12 Jul
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
17 May
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
8 Apr
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
11 Mar
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
11 Feb
2016 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
6 Jan
2016Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
10 Dec
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 4.82% Treasury bill
10 Nov
2015 Government of St Vincent and the Grenadines' 91-day T-bill, max
4.82% Treasury Bill
05 Nov
2015 Government of St Vincent and the Grenadines to issue a $15.0M,
max 6.5% Treasury Bill
5 Oct
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
7 Sep
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
7 Aug
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
2 Jul
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
5 Jun
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury bill
6 May
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
31 Mar
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
3 Mar
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
2 Feb
2015 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
29 Dec
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
28 Nov
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
31 Oct
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
26 Sep
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
10
Sep 2014 Government of St Vincent and the Grenadines to issue a
5-year $15.0M Note, max 6.0% - CANCELLED by Government
28 Aug
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
20
Aug 2014 Government of St Vincent and the Grenadines to issue a
7-year $15.0M Bond, max 7.0%pa [Maturity date 21 Aug 2021]
30 Jul
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
23
Jul 2014 Government of St Vincent and the Grenadines to issue a
3-year $10.0M Note, max 5.25%pa [Maturity date 24 July 2017]
25 Jun
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
27 May
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
29 Apr
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
24 Mar
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
21 Feb
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
27 Jan
2014 Government of St Vincent and the Grenadines to issue a 91-day
EC$25.0M, max 5.82% Treasury Bill
19 Dec
2013 Government of St Vincent and the Grenadines to issue a 91-day,
max 5.82% Treasury Bill
20 Nov
2013 Government of St Vincent and the Grenadines to issue a 91-day,
max 5.82% Treasury Bill
24 Oct
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
17 Sep
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
19 Aug
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
23 Jul
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill [ = aprox 23%pa]
13 Jun
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
16 May
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
19 Apr
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
19
Mar 2013 Government of St Vincent and the Grenadines' 10-year bond EC
$40, max 7.00%pa [Maturity date 2023]
12 Mar
2013Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
12 Feb
2013 Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
16 Jan
2013 Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
7 Dec
2012 Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
9 Nov
2012 Government of St Vincent and the Grenadines to issue a 91-day
EC$25M, max 5.82% Treasury Bill
15 Oct
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
5 Sep
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
8 Aug
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
12 Jul
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
4 Jun
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
4 May
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
27
Apr 2012 Government of St Vincent & the Grenadines 10-year EC$40M
Bond [ Maturity date 28 Apr 2022]
10 Apr
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
1 Mar
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
1 Feb
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
4 Jan
2012 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
29 Nov
2011 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
31 Oct
2011 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
29 Sep
2011 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
26 Aug
2011 Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
July
2011Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
Treasury Bill
29 June
2011 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
25 May
2011 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
28 Apr
2011 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
28 Mar
2011Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
21 Feb
2011 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
25 Jan
2011 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
22 Dec
2010 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
22 Oct
2010 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
21 Sept
2010 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
17 Aug
2010 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
21 Jul
2010 Government of St Vincent and the Grenadines to issue EC$20M,
5.82% Treasury Bill
17 Jun
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
14 May
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
19 Apr
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
16 Mar
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
10 Feb
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
14 Jan
2010Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
10 Dec
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
9 Nov
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
13 Oct
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
8 Sept
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
6 Aug
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
23 July
2009 Government of St Vincent and the Grenadines to issue a 91 day,
EC$20M Treasury Bill
30 June
2009 & 5 June 2009 Government of St Vincent & the Grenadines
to issue a 91-day, EC$20M Treasury Bill
19 May
2009 Government of Antigua & Barbuda to issue a 91-day, EC$17M
Treasury Bill
14
May 2009 Government of St Vincent & the Grenadines to issue a
7-yr, EC$15M Bond [Maturity 15 May 2016]
8 Apr
2009: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
4 Mar
2009: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
5 Jan
2009: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
1 Dec
2008: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
29 Sept
2008 Government of St Vincent & the Grenadines to issue a 91-day,
EC$20M Treasury Bill
28 Aug
2008: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
25 July
2008: Government of St Vincent & the Grenadines to issue a
91-day, EC$20M Treasury Bill
26 June
2008: Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
27 May
2008: Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
23 April
2008 Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
25 Mar
2008: Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
22 Feb
2008: Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
22 Jan
2008: Government of St Vincent and the Grenadines to issue a 91-day,
EC$16M Treasury Bill
21 Dec
2007: Government of St. Vincent and the Grenadines to issue a 91-day,
EC$16 Million, Treasury Bill
22 Nov
2007: Government of St. Vincent and the Grenadines to issue a 91-day,
EC$16 Million, Treasury Bill
24
& 25 Sep 2007: Government of St Vincent & the Grenadines to
auction a 10 Year, EC$30 Million, 7.5%pa Bond . [Maturity 04 Sept
2017]
20 Sep
2007: Government of St Vincent & the Grenadines to issue a
91-Day, EC$16M, Treasury Bill
21 Aug
2007: Government of St Vincent & the Grenadines to issue a
91-Day, EC$16M, Treasury Bill
19 July
2007: Government of St Vincent & the Grenadines to issue a
91-Day, EC$16M, Treasury Bill
18 Jun
2007: Government of St Vincent & the Grenadines to issue a
91-Day, EC$16M, Treasury Bill
15 Mar
2007: Government of St Vincent & the Grenadines to issue a 91
Day, EC$16 Million, Treasury Bill
15
& 16 Aug 2006: Government of St Vincent & the Grenadines to
auction a 10 Year, EC$40 Million, 7.5%pa Bond [Maturity 17 Aug 2016]
05 Sep
2006: Government of St Vincent & the Grenadines to issue a 91
Day, EC$16 Million, Treasury Bill
02 Mar
2006: Government of St Vincent & the Grenadines to issue a 91
Day, EC$16 Million, Treasury Bill
In
2018, government debt for Saint Vincent and the Grenadines was 2
billion LCU. Government debt of Saint Vincent and the Grenadines
increased from 1 billion LCU in 1999 to 2 billion LCU in 2018 growing
at an average annual rate of 5.60%.
What
is government debt?
Gross
debt consists of all liabilities that require payment or payments of
interest and/or principal by the debtor to the creditor at a date or
dates in the future. This includes debt liabilities in the form of
SDRs, currency and deposits, debt securities, loans, insurance,
pensions and standardized guarantee schemes, and other accounts
payable.
Thus,
all liabilities in the GFSM 2001 system are debt, except for equity
and investment fund shares and financial derivatives and employee
stock options. Debt can be valued at current market, nominal, or face
values (GFSM 2001, paragraph 7.110).
Debt
had risen slowly from 1990 to 2003. Then under ULP Gonsalves led
rule, it suddenly and rapidly soared to new heights from 2003 to
2018, never before experienced in the State of Saint Vincent and the
Grenadines.
16
Dec 2019 Government of St Vincent and the Grenadines to issue a
7-year EC$30.0M, max 6.75%pa Bond [Maturity date 17 Dec 2026]
EC$30 million
12
Sep 2019 Government of St Vincent and the Grenadines to issue a
7-year EC$20.0M, max 7.0%pa Bond [Maturity date 13/09/2026]
26
Nov 2018 Government of St Vincent and the Grenadines to issue a
10-year EC$8.0M bond, max rate 7.50% [Maturity date 11/27/2028]
8
Nov 2018 Government of St Vincent and the Grenadines to issue 8-year
EC$15.0M, max 7.25% Bond [Maturity date 9 Nov 2026]
06
July 2017 St.Vincent and the Grenadines, ISIN= KN74083NAJ13
Domestic
bonds 6% pa EC$35M [Maturity 7/03/2020]
12
May 2017 Government of St Vincent and the Grenadines to issue a
7-year EC$25.0M, max 7.5%pa bond [Maturity date 14 May 2024]
26
Aug 2016 Government St Vincent and the Grenadines, 7 year Domestic
bond ISIN=KN74083NAE42 7%pa EC$300K
[Maturity
date 08/26/2026]
26
Aug 2016 St Vincent and the Grenadines, Domestic bond 7%pa
US$6,039,000. ISIN=KN74083NAF17 [Maturity date 08/26/2026]
20
Aug 2014 Government of St Vincent and the Grenadines to issue a
7-year $15.0M Bond, max 7.0%pa [Maturity date 21 Aug 2021]
19
Mar 2013 Government of St Vincent and the Grenadines' 10-year bond
EC $40 million max 7.00%pa [Maturity date 2023]
27
Apr 2012 Government of St Vincent & the Grenadines 10-year
EC$40M Bond [ Maturity date 28 Apr 2022]
Money
Currently Owed When These Bonds Mature
2021
= EC$15
million
2022
= EC$40
million
2023
= EC
$40 million
2024
= EC$25
million
2026
=
EC$30
million
2026 =
EC$20
million
2026
= EC$15
million
2026
= EC$15
million
2026
=
EC$300 thousand
2026
= US$6,039,000
[EC$16,232,832.00]
2028
=
EC$8 million
Currently
outstanding Bond repayments $224,532,832.00
That
amount does not include the Treasury Bills if any outstanding between
2021 and 2028. But currently stands at about EC84,000,000.00 every
quarter [sometimes more]. That’s an annual borrowing of EC$
336,000,000., using 91 day Treasury–Bills, and no parliamentary
oversight.
We know the Treasury –Bill were not, but were all the Bonds presented to Parliament for approval? Someone else will have to check that out.
REASONS FOR ISSUING TREASURY BILLS
2002
unfound
2003
Basseterre, November 19, 2003 The Government of St Vincent and the
Grenadines will issue a ninety-one (91) day, sixteen million Eastern
Caribbean dollar (EC$16,000,000) Treasury Bill via a competitive
uniform price auction using the ECSE Primary Market Platform. The
bidding period will be from 9:00 a.m. to 2:00 p.m. on Monday,
November 24, 2003. The minimum bid amount is EC$5,000 and maximum
discount rate offered is 5.82 % (or $98.55).
https://www.eccb-centralbank.org/news/view/st-vincent-and-the-grenadines-to-issue-treasury-bills
Purpose
not published.
2004
unfound [There must have been Tbills issued because they are
mentioned in purpose of issue in 2005]
2005
Issue of EC$48 Forty-eight million Treasury-Bill,
http://www.ecseonline.com/PDF/Prospectus%20-%20SVG%20T-%20Bills%20March-%2005.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills to be
issued on the Primary Market via the Regional Government Securities
Market (RGSM) and to provide for liquidity in these instruments by
virtue of being traded on the Secondary Market via the Eastern
Caribbean Securities Exchange (ECSE) platform
2006
unfound
2007
unfound
2008/2009
Notice of forthcoming auctions of Issue of 12 monthly T-Bills @
EC$20 m
http://www.ecseonline.com/GovtSVGfinalprospectus20MJul08toJun09.pdf.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills to be
issued on the Primary Market via the Regional Government Securities
Market (RGSM) and to provide for liquidity in these instruments by
virtue of being traded on the Secondary Market via the Eastern
Caribbean Securities Exchange (ECSE) platform.
2009/2010
Notice of forthcoming auctions of Issue of 12 monthly T-Bills @
EC$20 m
http://www.ecseonline.com/issuer_profiles/documents/GovtSVGFinalProspectusforJul09toJun10.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills issued
on the Primary Market via the Regional Government Securities Market
(RGSM) and to provide for liquidity in these instruments by virtue of
being traded on the Secondary Market via the Eastern Caribbean
Securities Exchange
(ECSE)
platform.
2010 –
2012 unfound
2012/2013
Issue of 12 T-Bills @ EC$25 m each & 1 EC$40m 10 year Bond
http://www.ecseonline.com/PDF/2018/Jun18/GSVGAdden1%20VCG100323.pdf
To
refinance the existing issues of Treasury Bills issued on the Primary
Market via the Regional Government Securities Market (RGSM)
And to
raise an amount of XCD$40.0 million to finance the Public Sector
Investment
Programme
2013/2014
unfound
2014/2015
Notice of coming auctions of Issue of 12 T-Bills @ EC$25 m each &
1 Treasury Note, EC$15m 3 year
http://www.ecseonline.com/documents/FinalProspectusSVG2015.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills issued
on the Primary Market via the Regional Government Securities Market
(RGSM)
And to
raise an amount of XCD$40.0 million to finance the Public Sector
Investment
Programme [this information is incorrect should read EC$15m]
2015/2016
Forthcoming auctions of 11 Monthly issues of XCD28 million each.
file:///H:/Treasury-Bill%20Govt%20SVG%20Final%20Prospectus%202015-2016.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills issued
on the Primary Market via the Regional Government Securities Market
(RGSM)
2016/2017
Forthcoming auctions of 12 Monthly issues of XCD28 million each.
Purpose
of Issue: To refinance the existing issues of Treasury Bills issued
on the Primary Market via the Regional Government Securities Market
(RGSM)
2018/2019
Notices of monthly auctions of Issue of 12 T-Bills @ EC$28 m each
http://www.ecseonline.com/PDF/2018/Nov18/GSVG%20Prospectus%202018-2019.pdf
Purpose
of Issue: To refinance the existing issues of Treasury Bills issued
on the Primary Market via the Regional Government Securities Market
(RGSM)
2018
Addendum 1; proposes to auction a Treasury Note in the amount of
$15.0 million with the option for an additional $5.0 million on the
7th May, 2019
https://eccb-centralbank.org/debt-portal/documents/open/83
Purpose of Issue: To raise XCD $15.0 million with an option of an additional XCD $5.0million to finance the Public Sector Investment Programme via the Regional Government Securities Market (RGSM)
END
DISCLAMER: The opinion, belief and viewpoint expressed by the author do not necessarily reflect the opinion, belief and viewpoint of iNews Cayman/ieyenews.com or official policies of iNews Cayman/ieyenews.com
Published March 17, 2020
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