SVG

Eustace blames lack of confidence in Gov’t for failure of EC$40m bond

Opposition Leader Arnhim Eustace (File photo).

Opposition Leader Arnhim Eustace (File photo).

KINGSTOWN, St. Vincent, April 22, IWN – Opposition Leader Arnhim Eustace has blamed a lack of confidence in the Government’s finances for the EC$40 million 10-year bond issued last month being undersubscribed by $14 million.

Eustace, speaking on his radio programme last week, said that he has for years been commenting on the declining finances in this country.

“A lot of bills are not being paid by the Government because they don’t have the cash to pay,” he said of the Unity Labour Party administration, which, he noted, also owes the private sector millions of dollars.

“Revenue is declining and things are getting more and more difficult and they are wasting resources on a lot of things that they need not spend money on,” Eustace further said, mentioning the $4 million spend on the “Vote Yes” campaign for the constitution referendum in 2009.

He also noted that this country was once suspended from the Organisation of Eastern Caribbean States pharmaceutical procurement service because of non-payment.

Last year, Moody’s, a global credit ratings agency, downloaded this country’s credit rating.

“That is a bad sign. It sends a signal that they are not satisfied with our credit worthiness,” Eustace said, adding that Treasury bills issued in January “failed”.

“Then, they tried a bond issue and it was barely subscribed by 200 and something thousand (dollars). And, the person who put out the bond on behalf of the government took up some the bond, otherwise, it would have been undersubscribed,” Eustace said as he noted that the latest bond was undersubscribed.

“All those are signals being sent to you that confidence in the finances of St. Vincent and the Grenadines is disappearing. … The investor has no confidence that you will be able to pay them back when the time comes,” the former finance minister said.

He said he accepts the point by Prime Minister Dr. Ralph Gonsalves, who is also Minister of Finance, that bond issues in other Caribbean countries wound up “in trouble too and that had an impact on us.

“I understand that. But, it is the lack of confidence in the St. Vincent and the Grenadines government’s finances. That is the bottom line. And, they are not doing anything, in terms of the finances to improve the situation,” Eustace said.

Gonsalves said last month that the under-subscription resulted from poor marketing, Grenada’s recent default on its bond and uneasiness in the long-term capital market.

The bond was auctioned on March 19 to assist with financing of public sector investment programme for 2013.

The maximum rate of interest was 7 per cent to be paid semi-annually, the pricing mechanism was competitive bidding, repayment was to be amortised semi-annually and the maturation date was March 19, 2023.

The bond was auctioned on regional government securities market using the primary platform of the Eastern Caribbean Securities Exchange (ECSE).

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Discussion

10 thoughts on “Eustace blames lack of confidence in Gov’t for failure of EC$40m bond

  1. I think Mr EUSTACE is spot on right.

    Posted by peterbinose | April 22, 2013, 07:58
  2. Now watch VINCYPOWA come here and spew out a load of Marxist propagander calling Eustace names and insults.

    Posted by peterbinose | April 22, 2013, 08:00
  3. **YAWNING**

    Kenton, it seems, like you’re one of the few persons that take the Chicken-Back-Juice man seriously, because he is becoming IRRELEVANT in the POLITICS of SVG. Most persons in his party are asking him to STEP DOWN as LEADER, because they know with him as LEADER, there is NO CHANCE of the NDP getting the OPPORTUNITY to govern SVG again.

    Anything Chicken-Back-Juice Eustace has to say at this point should be IGNORED because he is now the LAUGHING STOCK of Vincentian politics. .

    His positions on local, national and regional issues are those of a person who should not manage a mauby shop much less governing a country.

    He is, FRANKLY, an EMBARRASSMENT.

    You can call him the ACCIDENTAL LEADER of the POLITICAL PARTY called the NDP.

    Posted by VINCYPOWA | April 22, 2013, 09:11
  4. Ralph is never wrong. He blames everybody but himself. Of course the bond failed because nobody trust his government. Poor marketing my foot. The PM should take a look in the mirror, because it’s poor financial planning why the bond was undersubscribed by $14 million.
    All those folks he has on the gravy train, should put back some of that money into the system, from whence it came.
    Arnhim is right.

    Posted by pvpalmer | April 22, 2013, 17:06
  5. PVPALMER, you’re just SPEWING a BUNCH of NONSENSE.

    Yes, CHICKEN-NECK-JUICE EUSTACE was right too (sarcasm) when he made a FOOL of himself in the BUDGET DEBATE. He claimed there was a BOND AUCTION in January of 2012 that was UNDER-SUBSCRIBED. Of course, he GOT it WRONG, because no BOND AUCTION took place during that month. Moreover, he got it WRONG when he said it was UNDER-SUBSCRIBED.

    But like always, CHICKEN-NECK-JUICE EUSTACE wanted to be WRONG and STRONG, claiming he was STANDING by his WORDS.

    As usual, Dr. Gonsalves made him LOOK like the MAUBY SHOP POLITICIAN and LEADER that he is by GIVING him a LESSON on the FACTS relating to the issue that he raised.Yet again, another PIE was THROWN in Eustace’s face, because he can NEVER GET the FACTS right.

    That said; Eustace is HIGHLY LIKELY NOT to SURVIVE being the LEADER of the NDP beyond their NATIONAL CONVENTION.

    In other words, his GOOSE is COOKED.

    Posted by VINCYPOWA | April 23, 2013, 00:43
  6. Gonsalves uses the poor and ignorant to put him in power, and the rich and greedy to keep him there. Once he has created more poor, which is going quite well, he will dispose of the rich collaborators. Those nasty old colonial families and many scum class attorneys.

    Posted by peterbinose | April 23, 2013, 08:51
  7. VINCYPOWA, I agree with Arnhim on the failure of the bond issue. That’s not nonsense. That’s a fact – it failed and Ralph blamed it on marketing.
    I pickup on the BOND issue, because I thought the airport could be financed through BONDS. But I could be wrong here, because people will only invest if they can trust the person or government issuing those BOND. No body will buy mauby from Ralph mauby shop.
    If I am spewing a bunch of nonsense, then prove my assessments wrong.

    Posted by pvpalmer | April 23, 2013, 20:06
    • In the grand scheme of things in this world SVG is considered as small fish swimming in the big pond. The fishermen are sitting and watching you tear each other down while your leaders are killing you with toxic debt. They are waiting to see when you start swimming sideways and then they will come to your assistance. These are the bankers of Crown City in London in the name of The World Bank, The International Monetary Fund, The UN and others, They are all the same. When you think that you are going to get help. think again. They are there to own you and to make life impossible for all of your citizens. Open up your eyes and look at Greece and Spain and all the others that they will bring to their knees including the USA and Canada. All of this is to accomplish the agenda of 1 world government. In order for 1 world government to take place, all Sovereign nations must be brought down. People, you will not be slaves to anyone anymore. Take matters into your own hands and work together to eliminate debt and turn it into wealth. Government as well as individuals can do this by simply listing all of your debts and all of your earnings. Attack the smallest debt first and work your way up to the largest. In the meantime pay the minimum on all debts and the largest amt on the smallest. As you eliminate 1 debt all of the payment used on the smallest debt must be combined with the minimum payment on the next debt to accelerate and eliminate all of your debts. This simple formula can have you debt free in just a few years. The alternative is a life of perpetual debt and worries and borrowing to pay what you already borrowed. Do not allow the big fish to swallow you up. Instead set the Example for all Caribbean People and Africa to follow. Stop fighting and start working. Grow your own food, Develop the fishing industry, Do not sell your beach front properties. Lease them for development so you can always have a stake in whatever happens. You are blessed with the most beautiful Islands in the world and an abundance of resources that has not been reveiled to you as yet. Respect each other and be courteous to all that visit your land. Blessing be with you always.

      Posted by charleln11 | April 25, 2013, 15:50
      • Well said. I hope others are taking note of the points made in your article. I have seen many documents that hold ideas and information that can be part of a party’s platform. The above document fits that category.

        Posted by pvpalmer | April 27, 2013, 18:52
  8. VINCYPOWA, your still at the game of telling whatever lies you can get away with. Almost everything that you post is untrue.

    In an attempt to make Arnhim Eustace a liar and appear stupid, you told this lie.

    “He claimed there was a BOND AUCTION in January of 2012 that was UNDER-SUBSCRIBED. Of course, he GOT it WRONG, because no BOND AUCTION took place during that month. Moreover, he got it WRONG when he said it was UNDER-SUBSCRIBED”.

    VINCYSTINKERPOWA, There was a bond issue and it was undersubscribed, you very stupid nasty lying little scum bag.

    Here is a copy of my records for the January 4th sale of treasury bonds, that you say never took place.

    _____________________

    4 January 2012
    Trading Symbol VCB050412
    Government of St Vincent and the Grenadines 91-day EC$25M, 5.82%
    Government of St Vincent and the Grenadines’ 91-day Treasury bill Issue Raises $24.61 Million
    The Government of St Vincent and the Grenadines’ 91-day Treasury bill issue, auctioned
    on the Regional Government Securities Market using the primary market platform of the
    Eastern Caribbean Securities Exchange (ECSE), raised $24.61 million.
    Six licensed intermediaries placed a total of 15 bids, ranging between $10,000 and $7.0
    million, with an aggregate value of $24.61 million. A competitive uniform price auction
    methodology was used and the resulting discount rate was 5.50 per cent. [ equivalent to 22% per annum]
    Our bid $ x,xxx,xxx.xx
    Amount allocated
    Portfolio Ref: x
    Maturity Date: 5 April 2011 – Trading Symbol VCB050412

    Participating Brokers
    The Bank of St Vincent & the Grenadines x
    The Bank of Nevis Limited, ECFH Global
    Investment Solutions
    First Citizens Investment Services Limited
    Financial Investment and Consultancy Services Limited
    National Mortgage Finance Company of Dominica Ltd
    _____________

    What is more stinker, it was very expensive money for SVG at 22% per annum.

    I am told but I have no evidence of such, that myself, several SVG lawyers and a senator bought most of this bond.

    Posted by peterbinose | April 24, 2013, 20:53

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