The Government of Grenada has successfully raised EC$15 million on the Regional Government Securities Market through the issuance of its first 91-day Treasury Bill for the year 2024, as reported in Tuesday’s daily update from the Eastern Caribbean Securities Exchange (ECSE), which is headquartered in Basseterre, St. Kitts.
Employing a competitive uniform price methodology, the report states that the Treasury Bill achieved a “discount rate of 3.46972%” on the ECSE’s primary market platform.
Under the authority of the Public Debt Management Act 2015, this issuance is part of the government’s effort to raise EC$115 million through treasury bills this year.
The next 91-day Treasury Bill auction is scheduled for May with each investor allowed one (1) bid, and the option to increase the tendered amount until the close of the bidding period.
Notably, according to the Government of Grenada’s 2024 Prospectus, “yields from these Treasury Bills will not be subject to any tax, duty, or levy by the participating Governments” of the Eastern Caribbean Currency Union (ECCU), including “Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Lucia, St Kitts and Nevis, and St Vincent and the Grenadines.”
The ECSE is a fully electronic regional exchange that was promoted by the Eastern Caribbean Central Bank (ECCB), as a part of a programme to develop money and capital markets in the Eastern Caribbean Currency Union (ECCU).
According to the ECSE website, the markets were developed in response to identified gaps in the financial infrastructure in the ECCU, where financial intermediation was based primarily on bank financing, leading to a bank-centric financial system.
The Government of Grenada’s use of Treasury Bills aligns with its Debt Management Strategy, aimed at reducing borrowing costs and minimising reliance on overdraft facilities.
This strategy prioritises concessional borrowings, sets predetermined ceilings for non-concessional borrowings, and aligns with debt sustainability targets to support major projects focused on transformation, resilience, and sustainable development.
The prospectus states that “strengthened risk assessments, improved debt proposal evaluations, and enhanced negotiating and contracting practices are key components to secure favourable terms in line with debt sustainability goals.”
The government’s strategic focus involves an expansionary fiscal profile, projecting smaller primary surpluses to support economic activity, job creation, and resilient development, in accordance with the Fiscal Resilience Act 2023.
Grenada’s economic prospects for the year are positive, with a forecasted growth of 3.6%.