GOVERNMENT TO BEGIN ISSUING TREASURY BILLS

The Grenada government has now received the green light by the Lower House to trade in Treasury Bills on the Eastern Caribbean Stock Exchange (ECSE). Finance Minister Anthony Boatswain took the Revised Treasury Bill Act 2003 through all its stages during a sitting of the Lower House last Friday.

In making his contribution on the Bill, Opposition Leader Michael Baptiste called on the government side to delay its passage because of the need for proper consultation. However the Finance Minister pointed out that the reason the Bill had to be taken through all its stages, at once because Grenada has an obligation to the Eastern Caribbean Central Bank (ECCB). He disclosed that the Monetary Council of the institution is scheduled to meet on February 28th and that Grenada is the only country yet to pass their legislation.

According to Boatswain, under the new and revised Act, primary and secondary trading of Treasury Bills can now be done on the Eastern Caribbean Stock Exchange (ECSE) with the ECCB acting as agent. The Finance Minister stated that in order for some one to own a Treasury Bill he/she must be certified and that the issuing of those Bills can be done electronically.

Under the new Act the Minister is now authorised to borrow  money within or outside of the country by issuing those Bills as well as utilising them in paying off further Treasury Bills already lawfully issued, which have reached maturity. The principal sums represented by any Treasury Bills outstanding at one time shall not exceed twenty-five percent of the estimated revenue of the Government during the financial year then current.

All Treasury Bills shall be recorded in a computer-based system or in such form as may be prescribed by Regulations made under the Act. The principal sum represented by a Treasury Bill issued under the provisions of this Act and interest thereon are charged on, and shall be payable out of, the Consolidated Fund.

Any proceeds paid out as a result of the issuance of Treasury Bills according to the Act shall be paid into the Consolidated Fund. Under the Act the provision for issuing Treasury Bills shall be for the amount directed by the Minister.

Also, the ownership of those Bills which are issued under the provisions of the Act shall be evidenced and transferred without a written instrument. The Securities Registry shall keep a register containing particulars of every Treasury Bill issued under the provision of this Act.

According to the Act in the event that interest accumulates from the issuance of those Bills, the Minister of Finance can remit the amount from the Consolidated Fund to the Securities Registry.

When Treasury Bills are to be issued, the Minister will invite bids by issuing an offering announcement in the Gazette, or in any newspaper published in Grenada or in any participating territory, not less than ten clear days before the issue date.