Jun 2015 Financial News

More institutions keen to be agents of Gov’t bonds (Barbados)

Jun 08, 2015

MORE financial institutions want to act as agents for the sale of Government bonds.

This as the Central Bank of Barbados looks to bring another issue of the savings bonds to the market following the first issue being snapped up by investors.

Linel Franklin, Senior operations Officer, Banking Currency and Investment at the Central Bank, had said at the launch of the inaugural issue that other institutions are keen on acting as agents for the bonds.

Currently commercial banks act as the authorised agents for the bonds.
According to her, “We have been having some feedback from other financial people about selling bonds but as it is today the persons who are the official agents are the commercial banks because they are registered under the banking Act.”

She indicated that once persons have bought the bonds they can surrender them at the banks.

Last week the Central Bank said that just three days after it re-launched its savings bonds programme with an issue worth $10,000,000, the series has sold out.

“The response from the public has been overwhelming. Three days after the new series went on the market we were getting calls from different banks requesting additional allotments,” revealed Governor Dr. DeLisle Worrell.

The Central Bank head reassured Barbadians who have not yet been able to buy savings bonds that there will not have to wait long for more to become available. 

“As we promised at the launch last week, we are moving to ensure that savings bonds are always available to the public. We will be opening another series of $10,000,000 on Monday, June 8.”

The governor confirmed that the next series, GBSB 76 would have the same price $76.24 per $100 and the same 5.5% yield as the previous one. 

“All Barbadians should have the opportunity to take advantage of these safe, lucrative investments. We’re ecstatic that savings bonds are a secret no more.”

The Central Bank of Barbados has been issuing savings bonds for 35 years. They are available for purchase by all Barbadian citizens and permanent residents as well as credit unions, registered charities and other benevolent associations.

Franklin had also said that “If you are a Barbadian living in Barbados or in the diaspora you can buy savings bonds.”

Source:
Barbados Advocate
Monday June 8, 2015

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=43861