Dominica Sets New Record Low Rates for Treasury Bills
The Government of Dominica has set a new record low rate for Treasury Bills on the Regional Government Securities Market, RGSM.
The move means that Government can now raise the financing it needs at a lower cost to the taxpayers of Dominica.
On Monday, March 17, 2014, the Government of Dominica raised 20 million EC dollars at a record low 1.999%, through the first of a series of three, 91 day Treasury bill offerings.
Honourable Roosevelt Skerrit, Prime Minister and Minister for Finance welcomed the low Treasury bill rate, recognizing it as a vote of confidence in his administration’s policies.
“The previous lowest interest rate of 2.49 percent recorded in December 2013 was also held by the Government of Dominica”, he noted.
The rate of 1.999% is 50 basis points below the previous record.
Encouraged by this success in raising revenue, the Government will seek to raise an additional 65 million EC dollars on the RGSM, through the 91 day Treasury bills and one five year, 25 million dollar bond.
This will finance part of Government’s operating budget and refinance existing government debt, the interest rate on which is much higher than the interest rate Government obtains on its Treasury bills.