Securities Market gets increased interest from investors - AntiguaSun

[Anguillan newsboy]

The Regional Debt Co-ordinating Committee (RDCC) said that all 91 day Treasury Bills issued on the Regional Government Securities Market (RGSM) in the first four months of 2008 have been oversubscribed.

Financial Secretary Whitfield Harris Jr. chaired the RDCC meeting attended by representatives of the governments of Anguilla, Antigua and Barbuda, Dominica, Montserrat, St. Kitts/Nevis, St. Lucia, St. Vincent & the Grenadines and the Eastern Caribbean Central Bank (ECCB).

In reviewing the performance of the market at its 27th meeting in May 2008, the RDCC noted the value of bids received for the treasury bill issued from January to April 2008 exceeded EC $321 million. This was more than double the $142 million in the value of bids received in the corresponding period in 2007.

According to the RDCC, the oversubscription of treasury bills is indicative of growing investor interest in the market, as well as of the high level of liquidity currently being experienced by the banking sector.

It also contributed to a fall in yields on treasury bills from an average of 5.9 per cent in December 2007 to 4.90 per cent in April 2008. This factor could enable the participating governments to reduce the cost of servicing their debt.

The RDCC, which oversees the development of the Regional Government Securities Market, noted that since four of the participating governments – Anguilla, St. Vincent & the Grenadines, Grenada and Montserrat – had obtained credit ratings, this could inspire greater investor confidence in the Eastern Caribbean Currency Union money and capital markets.