NASSAU, BAHAMAS — The Central Bank has committed to work with the Ministry of Finance to establish a government savings bond scheme for small investors, according to Central Bank Governor John Rolle.
Addressing the Bahamas Business Outlook yesterday, Rolle said increased savings would expand the resources available for investment in business, infrastructure and growth.
“For small investors, the Central Bank has committed to work closely with the Ministry of Finance to establish a government savings bonds scheme, to allow savers to gradually build up holdings in government instruments, providing access to the liquidity that such assets provide and their competitive returns prospects,” said Rolle.
“Over time, a savings bond framework would be expected to moderately increase the share of the debt held by small retail investors, without giving the government any incentive to borrow more than it needs.”
He added: “The local capital markets will also have to continue to develop more collective investment opportunities for Bahamian residents. Infrastructure development is one area to target — within the public-private partnership frameworks, as are increased, strictly private ventures.