ECCB 2014-2015 Annual Report and Statement of Accounts

EASTERN CARIBBEAN CENTRAL BANK

The amount raised, by the participating governments on the RGSM, increased by $181.8 million (18.2 per cent) to $1.2 billion in 2014/2015 (Chart IV). The value of Treasury bills increased by $128.5 million to $926.4 million; bonds rose by $53.9 million. The Bid to Cover Ratio (value of bids divided by the value of securities issued) increased to 123 from 121.

(bps) to 6.69 per cent, while the weighted average rate on the 10-year bond declined by 25 bps.

Institutions Eastern Caribbean Enterprise Fund (ECEF) The Eastern Caribbean Enterprise Fund (ECEF) remains a key component of the Bank’s strategy for development of money and capital markets in the ECCU. The ECEF is envisioned to be a significant mobiliser of financial resources for the private sector in the region. It will complement the services of existing financial intermediaries by filling the gap with respect to access and availability of financial resources to propel growth in the ECCU. The ECCB continued to provide support to the ECEF in its efforts to become fully operational. This entailed the approval of the revised business model which provides the framework for the development and full implementation of the business strategies, policies and procedures for the institution. Further analyses and evaluations were conducted on additional pipeline companies that were identified based on the earlier diagnostic and new market entrants. Efforts to capitalise the entity over the financial year were advanced with consultations with key strategic partners.

Chart IV

The strengthening of the RGSM was reflected in the Government of Saint Lucia issuing the first security with a maturity of over 10 years. The instrument was a 15-year bond that was fully subscribed at a rate of 7.95 per cent. The increase in investor appetite led to a decline in coupon rates across the various tenors issued by the governments on the RGSM. As a result there was a downward shift in the ECCU weighted average yield curve. The ECCU weighted average rate on 91-day Treasury bills declined to 3.65 per cent from 4.08 per cent, while the rate on 180-day Treasury bills fell to 5.42 per cent from 6.00 per cent. The weighted average rate on five-year bonds fell by 48 basis points

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ECCB ANNUAL REPORT 2014/2015