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Basseterre, St. Kitts, May 30, 2017 (SKNIS): The Government of St. Kitts and Nevis notes some inaccuracies in an article entitled “Gov’t Gets Approval To Borrow Up To $360 Million” that was published on 26 May, 2017, on winnfm.com.  The article refers to a Resolution that was made by the National Assembly on 23 May, 2017, to authorize the Government to borrow for current requirements in the form of advances for Treasury Bills. It should be noted that the Resolution is in keeping with the provisions of the Finance Administration Act for short-term borrowing which prohibits the Government from raising money except under the authority of an Act of Parliament or of a resolution of the National Assembly.  The Finance Administration Act, however, limits the validity of a Resolution to a period of twelve months. It is for this reason that every year a similar Resolution is taken to the National Assembly for consideration so that the Government’s actions could be in accordance with the law as it continues to hold existing short-term debt instruments.  The Resolution that was made on 23 May, 2017, therefore granted the Government the legal authority to continue the rollover of its existing Treasury Bills portfolio.

 

Contrary to the information provided in the article, the National Assembly’s approval is not to facilitate the Government’s payments for goods and services and wages and salaries. The Resolution submitted does not represent an intent to borrow but rather is simply an annual legal requirement to facilitate the continued reissuance of Treasury Bills.  Such Treasury Bills are issued over-the-counter via the Accountant General’s Department and not on the Regional Government Securities Market as indicated in the article.

Here’s the link to the story: http://www.winnfm.com/news/local/22233-gov-t-approved-to-borrow-up-to-360-million