With United States Treasury Bond yields averaging below 2% over the last 10 years and at record lows, the Central Bank of Barbados is forced to pay 6% on a new $65,000,000 Treasury Note issue. You get the feeling that Central Bank Governor Delisle Worrell is backed into a corner with his list of viable options evaporating in his hand. (Thanks to Barbados Today for the photo)
I really don’t know much about these things – but I do know this: When Barbados is forced to pay three times the going rate to borrow money, we have a problem somewhere…
Central Bank of Barbados : ISSUE OF $65,000,000 BARBADOS GOVERNMENT 6% TREASURY NOTE 2018
General Press Release ISSUE OF $65,000,000 BARBADOS GOVERNMENT 6% TREASURY NOTE 2018
ISSUE OF $65,000,000 BARBADOS GOVERNMENT 6% TREASURY NOTE 2018
Applications are invited on January 31, 2013 for subscription to this Treasury Note opening on February 01, 2013. The Treasury Note will be issued at par with a fixed interest rate of 6%payable on January 31and July 31 of each year. The interest due to Pensioners 60 years and over residing in Barbados will not be subject to withholding tax.
Non-residents seeking tax exemption must satisfy the Commissioner of Inland Revenue of their status before exemption is granted. However, for all persons resident in the island, the interest from these Treasury Notes will be taxed separately from other income at a rate not exceeding 12½%. These Treasury Notes will be repayable at par on January 31, 2018. The issue will remain opened until the Central Bank advises that it has been fully subscribed.
Prospectuses may be obtained from the Central Bank of Barbados, our website http://www.centralbank.org.bb, the Accountant General or any commercial bank. Application forms should be addressed to the Director, Banking, Currency & Investments Department, Central Bank of Barbados, Tom Adams Financial Centre, P.O. Box1016, Bridgetown.
January 29, 2013