Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698077533145.pdf (Saint Lucia)
Government of Saint Lucia Statistical Debt Bulletin Debt and Investment Unit Government of Saint Lucia June 2020 The Debt and Investment Unit (DIU) in the Ministry of Finance, Economic Growth, Job Creation, External Affairs and Public Service is the Government of Saint Lucia’s primary agent responsible for managing the country’s public debt.
This issue of the Public Debt Bulletin covers the second quarter (April -June) of 2020 with comparisons to the previous quarter and the corresponding quarter of the previous year.

For the purposes of the debt bulletin, debt is classified according to the residency of the creditors represented in the debt portfolio not the currency profile.

Thus, domestic debt can include foreign currency debt.

1.
1.

Central Government Debt 1.1 Central Government Debt Stock Central Government debt is the total public debt stock minus government guaranteed debt.

It stood at $3,362.95M at end June 2020, a $91.9M or 2.8 % increase from the March 2020 and a $257.2M or 8.3 % increase over June 2019.

(Chart 1) Interest payments totalled $30.1M, which comprised $11.2M external payments and $18.9M domestic payments.
(Chart 3) 1.4 Central Government Loan Disbursements loan disbursements for the quarter amounted to Total $105.88M, all from multilateral sources.

$23.1M from the International Development Association (IDA), $79.5M from the International Monetary Fund (IMF) and $3.3M from the Caribbean Development Bank.

(Chart 4) 1.2 Central Government Residency Classification At the end of June 2020 Domestic debt stood at $1,603.8M or 47.7% of the central government debt stock.
Domestic debt decreased by $25.4M from March 2020.

External debt stood at $1,759.2M at end June 2020 or 52.3% of the central government debt stock.

This is an increase of $117.3M over March 2020 (Chart 2) 1.3 Central Government Debt Service Total debt service for central government amounted to $286.2M, a $16.5M or 6.1 % increase over March 2020.

Principal repayments amounted to $256.19M, of which $149.4M was external amortization and $106.8M domestic repayments.

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1 2.

Central Government External Debt 2.1 External Debt by Creditor Category Multilateral creditors dominate the external debt portfolio with a 38.5% share.

Insurance Funds next with 13.8% and Other Financial Corporations 11.03%.

Other holders are Commercial Banks (10.73%), Bilateral (7.6%), Non-Financial Corporations (4.3%), and foreign social security (3.4%).
(Chart 5) 2.4 External Debt by Instrument At the end of June 2020, Loans dominated the external central government portfolio and accounted for $808.8M or 46.0 %, followed by $755.7M or 43.0% for bonds and $194.7M or 11.1% for treasury bills.

(Chart 8) 2.2 External Debt by Interest Type The primary interest rate type of Government of Saint Lucia external debt is fixed; accounting for $1,417.4M or 80.6 % of the portfolio.
Loans contracted at variable interest rates accounted for $250.5M or 14.2 % with the remaining $91.3M or 5.2 % being interest free CIP bonds.

(Chart 6) 4.

Central Government Domestic Debt 4.1 Domestic Debt by Creditor Category Central Government Domestic debt amounted to $1,603.78M, a 1.6 % decrease from March 2020.

Social Security and Commercial Banks are the leading contributors with 30.1 % and 26.0 %, respectively.
Other Financial Corporations follow with 25.0 %, Insurance Funds 9.4 %, Private Individuals 6.5 % and Non-Financial Corporations 1.6 %.

(Chart 13).

2.3 External Debt by Currency Composition At the end of June 2020, the United States Dollar (USD) accounted for a 46.7 % share of the external debt stock.

The Eastern Caribbean Dollar (XCD) accounted for 34.4 %, Special Drawing Rights (SDR) 17.8 %, Kuwaiti Dinars (KWD) 0.8 % and the EURO (EUR) 0.3 %.
(Chart 7) 4.2 Domestic Debt by Instrument Bonds and Notes dominated the domestic Central Government portfolio with 78.0 % followed by Loans (13.6 %) and Treasury Bills (8.4 %).

(Chart 14) 2 Chart 14: Domestic Debt by Instrument Treasury Bills 8% Loans 14% Bonds & Notes 78% 4.3 Domestic Debt by Currency Composition For the purposes of the Debt Bulletin, debt is categorised by residency, which includes both local and foreign currencies.
Eastern Caribbean Dollar (ECD) accounted for 84.5 % of the domestic debt stock with United States Dollar (USD) accounting for 15.5 %.

(Chart 15) Chart 15: Domestic Debt by Currency Composition USD, 15% ECD, 85% 4.4 Domestic Debt by Interest Type Interest rates on all domestic instruments are fixed.

5.

Regional Government Securities Market (RGSM) Activities The Government of Saint Lucia issued four instruments using the RGSM platform for the second quarter of 2020.
Two 91-day Treasury bills had bids worth XCD$22.1M and two 180-day bills worth XCD$34.5M.

(Table 1) 3 6.

Government Guaranteed Debt 6.1 Government Guarantee Debt Composition At June 2020, the Government’s guaranteed debt amounted to $190.2M, a decrease of 1.3 % over March 2020.

Domestic liabilities accounted for 73.9 % and external liabilities 26.1 %.
(Chart 16) Chart 16: Guaranteed Debt by Residency External 26% Domestic 74% 6.2 Domestic Guaranteed Debt by Creditor The National Insurance Corporation holds the greatest share of the guarantee portfolio with 83.6 % of the total or $117.5M.

Bank of Saint Lucia and the 1st National Bank of Saint Lucia have 8.7 % or $12.2M and 7.1 % or $9.9M, respectively.
(Chart 17) April 07, 2020LCB08072091 day T-Bill16,000,00011,142,00011,142,000-4,858,0003.50April 14, 2020LCB121020180 day T-Bill21,000,00018,511,00018,511,000-2,489,0003.00April 16, 2020LCB17072091 day T-Bill11,000,00010,920,00010,920,000-80,0003.50June 29, 2020LCB271220180 day T-Bill16,000,00019,020,00016,000,0003,020,000.00 $3.25Table 1: Quarterly RGSM AuctionsAuction DateIssueTenorIssue Amount (XCD)Value of Bids (XCD)Amount Accepted (XCD)Over/Under Subscription)Coupon Rate % 6.3 External Guaranteed Debt by Creditor /Borrower These are external obligations by SEO’S guaranteed by the government.
The creditors of these obligations are the Caribbean Development Bank (CDB) which holds the greatest share of 89.7 % and CARICOM Development Fund (CDF) 10.3 %.

(Chart 18).

The UWI Open Campus is the largest borrower of the external guaranteed portfolio with 48.4 % or $24.0M.

Bank of Saint Lucia (SLDB) has 21.7 % share or $10.8M, WASCO 17 % (8.45M) and SLDB 10 % or 5.10M.
(Chart 19) Chart 19: External Guaranteed Debt by Borrower Chart 18: External Guaranteed Debt by Creditor 10% 90% Caribbean Development Bank (CDB) CARICOM Development Fund (CDF) 2% 10% 22% 17% 48% National Development Corporation (NDC) Bank of St. Lucia (SLDB) Air & Sea Ports Authority UWI Open Campus 1% WASCO SLDB 6.

Portfolio Risk Indicators The weighted Average Time to Maturity of the portfolio at end June 2020 was 5.2 years.

This represents an 8.3 % increase from the previous quarter.
The weighted Average Time to Refixing of the portfolio was also 5.2 years, an 8.3 % increase from the previous quarter.

The Weighted Average Cost of Debt declined slightly compared to the previous period.
(Table 2) Table 2: Central Government Risk Indicators Cost and Risk Indicators ATM % Maturing in 1 year ATR WACD Jun-19 4.95 22.98% 4.5 5.26% Sep-19 Dec-19 Mar-20 5.13 5.13 4.82 18.52% 18.24% 28.94% 4.1 5.13 4.82 5.21% 5.16% 5.13% Jun-20 5.19 24.44% 5.19 5.03% 4 5 ParticularsJune 2019September 2019December 2019March 2020June 2020Qrtrly change %Yrly Change %Total Public Debt (XCD)3,289.733,350.333,416.723,463.623,553.162.598.01Central Government Debt 3,105.733,169.783,224.563,271.083,362.952.818.28Government Guaranteed Debt183.99180.55192.16192.54190.21-1.213.38Central Government Debt (XCD)3,105.733,169.783,224.733,271.083,362.952.818.28External Debt1,588.491,612.041,640.521,641.861,759.177.1410.74Domestic Debt1,517.241,557.741,584.221,629.221,603.78-1.565.70Government Guarantees (XCD)183.99180.55192.16192.54190.21-1.213.38External Debt38.1837.8249.1350.5449.69-1.6730.14Domestic Debt145.81142.74143.02142.00140.52-1.04-3.63External Debt by Instrument (XCD)Loans646.16671.72704.97711.60808.7913.6625.17Bonds739.35740.80733.15726.59755.724.012.21Treasury Bills202.98199.52202.40203.67194.66-4.42-4.10Domestic Debt by Instrument (XCD)Loans234.31229.44220.25218.95217.78-0.53-7.05Bonds1,212.701,208.351,222.581,260.001,251.56-0.673.20Treasury Bills70.24119.94141.38150.26134.43-10.5491.40Foreign Currency Risk (%)% of debt in Local Currency XCD59.9959.9059.7759.7334.37-42.45-42.70% of debt in USD32.1632.5332.8132.6846.6642.7745.10% of debt in EUR0.240.230.200.200.3260.4031.99% of debt in KWD0.550.540.480.490.8471.9753.89% of debt in SDR7.076.806.746.9017.81158.09152.05Total Debt Service (XCD)External140.80175.70135.10138.50160.552.52-1.63Domestic87.30149.70120.80131.20125.698.6150.29Interest35.2045.4036.5043.5030.05-30.92-14.63Principal192.90280.00219.40226.20256.1913.2632.81Interest Rate Structure (%)Fixed Rate93.7792.8992.1192.5889.84-2.96-4.19Variable Rate 5.686.707.627.157.444.0630.99Interest Free0.560.420.280.272.70900.00382.14Risk IndicatorsATM (Years)5.135.134.824.825.197.681.17Maturing in 1 year (%)22.9818.5218.2428.9424.44-15.556.35ATR (Years)4.085.134.824.825.197.6827.21WACD (%)5.265.215.165.135.03-1.95-4.37Table 3: Quarterly Summary