ECCU urged to make more active use of RGSM
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| Headquarters of the Eastern Caribbean Central Bank (ECCB) - photo by Erasmus Williams |
BASSETERRE, ST. KITTS, OCTOBER 19TH 2007 (CUOPM) – Member states of the Regional Government Securities Market (RGSM) are being encouraged to make more active use of this financial facility.
Council, under the chairmanship of Anguilla’s Minister of Finance, Hon. Victor Banks, considered the role, which a diversified and efficient financial system can play in sustaining growth in the Eastern Caribbean Union Currency (ECCU) and recognised that, given the region’s growth challenges and fiscal constraints, the Regional Government Securities Market (RGSM) was proving to be a critical financing vehicle.
The Council, made up of Ministers of Finance, agreed to encourage member governments to make more active use of the RGSM in light of the lower costs relative to non-RGSM financing, thereby assisting member governments in improving their debt management practices; the opportunities for economic agents to diversify their portfolios and better manage their liquidity; and the opportunity for member governments to provide leadership in the growth of money and capital markets.
They also recognised the need for increased investor activity in the market and further agreed to encourage member governments to complement the Bank’s efforts in promoting financial literacy throughout the currency union.~~Adz:Right~~
Council noted that, as a means of identifying a way forward in developing an appropriate statistical system to support effective policy making in the ECCU, the Bank collaborated with the International Monetary Fund (IMF) in hosting an International Conference on Statistics during the period 5-7 September 2007.
Council noted the outcome of the conference and in particular endorsed the content of the resolution prepared by the participants, who noted the statistical systems of the member countries of the ECCU should be strengthened to make the countries more responsive to the data demands of national policy-making in a globalised world.
There should be centralised coordination and management of the national and regional statistical systems, provision of adequate resources for the implementation of the required statistical work programmes and a clear legal mandate and appropriate institutional framework to facilitate the above.
Council agreed to recommend that member governments investigate the appropriate institutional structure to allow for the proper functioning of the statistical offices.
In furtherance of Council’s continued commitment to support the monetary policy stance of the ECCB through appropriate fiscal policies at the national level, Council reviewed the fiscal performance indicators of member governments for the period January – June 2007 comparing them with the targets which has been specified, examined the indicators of debt performances by member countries; and agreed that debt targets for 2008 should be prepared in time for consideration at the next meeting of Council, prior to publication.
Council also supported the establishment of a Public Expenditure Review Commission to investigate and make recommendations on appropriate ways of rationalising the form and function of public sector expenditure in the member countries of the currency union.
