Oct 09 - Government Says No Correlation Between Debentures and Public Debt
In response to recent comments made by the GSD on Government debentures and public debt the Government has claimed that the decision to redeem Government debentures, whilst also giving savers the opportunity to invest their savings in the Gibraltar Savings Bank, has no impact on the level of public debt.
No.6 stated that the transfer of debentures to the bank allows for the administration of all individual debenture holdings to be brought under a single entity, easing administration of the product.
A statement issued by No.6 added, ‘the Government will, in turn, issue the Gibraltar Savings Bank with a single short term debenture equivalent to the total amount of all the individual holdings being redeemed, giving the Government more flexibility in the management of its public debt. The effect of this is that both on the level of gross public debt and net public debt remain unchanged.
Individual debenture-holders in the Gibraltar Savings Bank will continue to have their savings fully guaranteed by the Government at all times.’
