Government pursuing options to lower borrowing cost and reduces National Debt

~~Adz:Right~~ BASSETERRE, St. Kitts - DOCTOR the Hon. Timothy Harris, Minister of Finance, International Trade, Industry, Commerce and Consumer Affairs, was recently given a detailed demonstration of the operations at the Regional Government Securities Market (RGSM) in a meeting at the Eastern Caribbean Central Bank’s Headquarters.

The meeting provided Dr. Harris and his team the opportunity to witness the process of how the RGSM functions by observing the issuing of a 91-day Treasury bill auction by the Government of St. Vincent and the Grenadines. The session was very productive and insightful as Minister Harris asked a number of substantive questions of the team at the ECSE, led by Mr. John Venner.

The demonstration sessions came as the St. Kitts and Nevis Labour Party Government, led by Prime Minister the Hon. Dr. Denzil Douglas, moves aggressively to reduce the cost of borrowing to the Government, which would also lead to a decline in the national debt stock.

Dr. Harris posited that in addition to the long term debt strategy and the RGSM, Government would be successful in improving the fiscal standing of the Government over the medium term.

Dr. Harris was accompanied to the meeting by Levi Bradshaw, Accountant General of the Treasury Department, and Gary Thomas, Economist at the Ministry of Finance, Fiscal Policy and Regulatory Division.

The Regional Governments Securities Market (RGSM) is a regional market for the trading of debt instruments of the member states of the ECCU which comprises Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia, and St Vincent and the Grenadines. The market was established in November 2002 and operates on a fully electronic platform. The instruments on the RGSM take the form of Treasury-bills, notes and bonds and have varying maturities. These securities are backed by the full faith of the governments of the issuing member states.

The RGSM was set up to assist the governments of the member states with the following: supplement the financing needs of the member governments of the ECCU, minimize the cost of borrowing for member governments and assist in their overall debt management, deepen the region’s financial markets by integrating the eight fragmented member governments of the ECCU and creating a single regional financial space, and to provide more opportunities for regional and international investors in the development of the region through investment in these securities.

For more information on the activities and operation of ECCB, ECSE or RGSM visit: www.eccb-centralbank.org or www.ecseonline.com