This was revealed recently by the Premier of Nevis, Joseph parry, who admitted that a few investors “Took their money out, because of what happened with the St. Kitts-Nevis Bonds, the consequent stories that were on the internet and rumours all over the island.”
The Premier has tried to re-assure residents though and others who have supported their efforts to raise money, that Nevisian Treasury Bills will not be affected by what he called the much talked about “hair cut”.
In a statement from his office, Mr. Parry, advised that during the most recent treasury bills rollover “most people renewed their treasury bills. Parry informed that the haircut will not be extended to the treasury bills issued by the Nevis Treasury and that investors are going to get back all their money and interest.
“Do not be scared away; don’t let anybody regardless of what authority they have behind them, to tell you what is going on with the government,” said the Premier.
“I believe that I should be the number one person to speak for the Nevis Island Administration. I do not believe that anybody else can speak with the authority that I have, and I am saying to you that the treasury bills will not experience a haircut.”
He appealed to the treasury bills holders to have confidence in the Nevis Island Government, assuring that after the end of the current restructuring exercise the government will be alright. In the face of the restructuring, the government will be able to pay its bills, salaries, wages, and long term investment (capital projects) bills.
“We are organising ourselves in a way for the benefit of all the people of Nevis,” advised Premier Parry. “When we come out of this we will be stronger, we will be leaner and we will be able to move forward with vigour.
Parry, who is also the island’s Finance Minister, gave the assurance that his Administration is negotiating with the various banks: National Bank, and the Bank of Nevis to make sure that whatever is done is done in the interest of the people of Nevis and those persons who have invested in those banks, those people who have deposits in those banks do not come out losers.
In terms of foreign investment, the Premier pointed out that they would be taking a “haircut”. Arrangements with them have been on a long term basis and the fact that the present arrangements (on advice by White Oak) will be re-negotiated on a longer term basis, and will allow the government to be able to honour its commitments to them.
“The IMF also keeps a watchful eye over what is taking place to make sure we keep our promises, and there is another organisation that is working with us to help us get back on our feet,” revealed the Premier.
“We have three years to do this. We will work to having it done within the time period, and I am quite satisfied that we have been successful so far,” said Mr. Parry.