Browne tells Watts no parliamentary approval needed for Treasury bond transactions, but it could be considered in future

The Government is considering the need to obtain the Parliament’s
approval in matters related to bonds and Treasury bills it floats on
the Securities Exchange.
 
This undertaking was given by Finance Minister Gaston Browne in
the Lower House on Thursday, February 22, following a question
posed by MP Algernon “Serpent” Watts.

The Government had issued Treasury bonds to the Global Bank of
Commerce to cover monies it borrowed, and these were eventually
ceded to businessman Jack Stroll.

Because the bank is now faced with insolvency and correspondent
bank issues, it has been unable to return Stroll’s US$10 million, and
he was unable to have the bonds redeemed early, as promised by
the Browne Administration.

Accordingly, MP Watts sought to find out whether these transactions
had been approved by the Parliament.

Browne said that, ordinarily, with Treasury bonds and bills, there is
no need for parliamentary approval.
 
Technically speaking, he agreed, these are borrowings; but,
generally, he claims there has no practice of seeking parliamentary
approval for bond instruments and Treasury bills issued by the
Ministry of Finance.
 
With the fluidity of trading –
especially of instruments listed on the Eastern Caribbean Stock
Exchange – Browne says that bonds are being repaid almost
monthly and new bonds are being issued; so it is difficult to take
these transactions before the Parliament.

The prime minister says that, maybe, this is a lacuna – or gap –in the
law, and is something that could be addressed going forward,
ensuring that the House approves the issuance of government
bonds and bills.