Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

242 This outcome was influenced by the adverse effect of continuing weak economic activity on Government revenue, a $0.5 billion increase in the ceiling for Government’s local debt and the heavy investor demand for Government securities, in particular those with longer-dated maturities. Between 2008 and 2016, the Bank issued Treasury Notes and Debentures with a nominal value of $6.4 billion; the net issuance amounted to $3.4 billion, when adjusted for maturing issues. The average return on this debt was in the five to six percent range. From 2008 to 2014, there were between one and three issues of Savings Bonds each year; given the level of rollovers and redemptions, the net amount outstanding at year-end varied between $89 million and $100 million. The Bank re-launched its Savings Bond Programme in May 2015. As a result, in 2015 and 2016, issues of Savings Bonds were $80 million and $40 million, respectively; the net amount outstanding at year-end rose to $156.3 million in 2015 and $172.2 million in 2016. External financing The Bank used its technical expertise to help government raise external loans. In 2009, US$40 million was secured. During 2010, a total of US$200 million was negotiated and three years later another US$225 million was raised. Special Schemes The Bank introduced the Trade Receivables Liquidity Facility during 2010 to help ease the cash flow of small businesses. The Tourism Loan Guarantee Facility was established during 2011 to provide funding for maintenance, capital expenditure and servicing of debt in the hotel sub- sector. During 2015, the Government of Barbados secured US$35 million from the Inter-American Development Bank to establish and finance an enhancement of the Bank’s Credit Guarantee Scheme to provide collateral support to SMEs seeking medium to long-term financing. The Fund received capital contributions totalling $5 million during the year and the Bank assisted with the launch of that entity in 2016.